When you talk to people about how and why they start in business, there are many and varied responses, but most say they had a great idea and then made the decision to turn it into a business.
Unfortunately the statistics from the Australian Bureau of Statistics are damning in that over 50% of start-up businesses fail within the first three years. Is this because the business idea simply didn’t stack up in the first place? Let us help you analysis your business idea.
If you have a business idea or are considering a business expansion, you must consider these recommendations to significantly increase your success;
- Clearly write down your business idea.
- Undertake market research to test your idea.
- From your research, identity the business opportunity, as well as how you plan to make profit from your idea, and also how it will grow.
- If the opportunity ‘stack ups,’ develop your business model to address the strategies necessary to make a profit.
- Seek advice and opinions from people you trust and respect, and listen to their feedback.
- Modify your model as a resultant of feedback and due consideration.
- Bring your business model to life by documenting a business or product plan.
A key part of this process is the identification of a business opportunity, which is very different to a business idea.
The following are a few questions to consider when determining whether you have a business opportunity that ‘stacks up,’ or more importantly that doesn’t, and the earlier you realize this the better.
- Do you believe you can provide an existing product or service differently, or better than the companies currently in the market?
- Have you been given an opportunity to work with a client, if you go out on your own, because you can do it better or cheaper?
- Do you see a market gap which can be filled by a new product or service that can address an unresolved problem, satisfy an unmet want, or need in a market that has significant growth potential?
- Do you see an opportunity because of an existing product or service not being available in another market segment?
To significantly reduce your risk, or just as importantly, capitalise on a genuine opportunity, seek some advice, and give consideration to the points raised in this article.
If you would like some advice regarding a business idea or opportunity you might have, simply contact me and I would be happy to offer you a confidential complimentary one hour session to test your thinking.