How To Know If Your Business Will Succeed?
When first contemplating a business idea, what is the best way to evaluate its feasibility? Will it be successful, and what do you need to do in order to make your business a success from the get go. I’m sure you’ve seen (or heard) of entrepreneurs who are successful at launching businesses that reek of feasibility. Are they simply lucky or simply brilliant?
Great business owners are both – luck and brilliant. As a potential small business owner, when you are evaluating what type of business to start, there are dozens of variables to consider, but to keep it simple here, let’s look at 3 basic steps to creating a business that will succeed:
1. Stick To What You Know
One of the biggest mistakes new entrepreneurs make is getting into a business that they have limited knowledge about. For example, I’ve heard many stories of an entrepreneur opening up an eatery (restaurant), only to fold up the business six months later, and be out thousands of dollars in debt.One proven fact is that entrepreneurs thrive in businesses when they are emotionally committed to their business. It’s the reason they don’t give up when there are challenges or bumps in the road. A lot of money can be made from one’s passion.
2. Crunch Numbers
You may not be a numbers guy, but crunching numbers before you start is essential. I’m certain that you wouldn’t purchase a new car without crunching the numbers, and knowing what you can afford.There’s no excuse to not do research on other businesses that are similar, and that have been around for years. Use their pricing as an example to establish your own pricing. Take their marketing ideas, and fine tune them for your business. You don’t need to re-invent the wheel, everything is already out there.
You should also figure out your fixed costs—such as rent or utilities like your cell phone—and variable expenses such as inventory and marketing costs.
3. Spread The Word
Spread the word anyway you can. Being a marketing person, I think its very important to market your small business effectively, but marketing does not have to cost a lot of money. Talk to people about your business by showing your passion for your business. Hand our business cards at will, and create an online presence. Identify your target market, determine how you will reach them, and test your marketing messages over and over until you nail down the one that gets them to respond and buy.
All of the above three are important, but knowing the type of business/industry you’re getting into is a very important key point. Far too many entrepreneurs pick the wrong industry to start their business, and therefore end up on the wrong side.
Readers, can you suggest any other important variables to consider when evaluating a businesses feasibility?
Photo Credit – Artnoose