Updated: March 25, 2020
You finally have that winning business idea. You feel excited and anxious to start your business. But don’t be in such a hurry, that great business idea you think that you have may not be so great after all.
So how do you know if you’re holding a goldmine or a land mine that will just blow your money away? Here are five steps to ensure that you’re not leading yourself to a trap:
Is the business compatible with you?
Seriously evaluate your business idea if it’s something worth pursuing on your part. Get past the excitement and begin to objectively enumerate the reasons why you think that this idea will work for you.
More important than the feasibility of the idea is your compatibility with the business. Consider your industry experience, your interests, your lifestyle, and your resources. Do these complement your intended field of business?
Put yourself in the shoes of the consumer
A business must genuinely give value to its consumers so it will continue to grow and profit. Pretend that you’re one of the potential customers of the business.
Do you imagine yourself buying your own product or availing your own services? Belief to one’s own claim and offer is a basic requirement for all entrepreneurs. If you don’t believe in your own product, what makes you think others will?
Find a mentor and share your thoughts
Whether it’s your first time to put up a business or not, I always advise to find someone with a good entrepreneurial track record and ask for advise.
Talk with people you trust and respect. Relate to them your business idea and explain your objectives and your plans. Sharing your thoughts will give you more perspective on your business idea and lead you to some points that you might have failed to consider.
Talk to your potential customers
Share your idea to some potential customers and ask for their opinion. Ask for an honest evaluation if the business idea will work or not. If not, what can they suggest to improve the product or the service to make the idea profitable.
Remember to consider these constructive criticisms when you decide to pursue this endeavor. But don’t be afraid to junk your idea if there’s really a resounding disagreement from your target market.
Write your business plan
After doing everything and you still really believe that you have a winning business idea in your hand, then it’s time to write your business plan.
Having one enables you to see the whole picture – the business set-up requirements, the capital you need, the product specifications, market competitions, operations and management teams and financial projections.
In short, you’re now ready to get your hands dirty and do some hard work to start your own business.