A new business venture could be quite a costly exercise if it does not succeed the way you’d hoped it would. That’s why it’s important to take every step to ensure that your idea can and will make you a pretty penny at the end of every day.
Talk about your idea
A good idea is simple. If you can’t explain it to your friends or grandfather, perhaps it’s time to re-evaluate things. There are two questions you need to ask yourself first: what need will your business fulfil and how many people need this service or product? Next, take a look at your abilities, skills and talents; how could they help you in your venture? Then identify your competitors and ask yourself how your business could do a better job than them. Your business must have something that will set it apart from your competitors or it will end up just blending in with the rest.
Put your feelers out
You need to test your idea with potential customers. Avoid friends and family as they might give you a false reaction due to their encouragement. Talk to your target market and find out what they want you could do to make your business idea stand out from the rest.
Know your competitors
Your competitors can either make or break you. Identify five to ten competitors that offer the same service or product that you’d like to offer. Take a close look at what they’re offering, their prices, and how successful the business is.
Understand the costs
Work out all your costs involved, from marketing to manufacturing to office supplies. Add up all your costs and divide it by twelve to determine your costs every month. The figure you get will be your breakeven revenue. Knowing your financial needs right from the start is a good way to understand the needs of your business.
Who are your sales ninjas?
Who will be marketing and selling your product? Do you have a knack with words and a passion for sales? Or do you have someone else in mind to get the job done? Think about it and the costs involved if you decide to go with an outside person. Remember, in order for your business to be a success, it has to make a profit and the only way to do that is to get your sales up.
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