So, you’ve got a great idea for a business and all your friends are telling you it’s going to be a roaring success. The problem is, you just don’t know where to start. There are so many things to think of that you simply don’t know which one to deal with first.
Before you go throwing yourself in headfirst and spending a wad load of cash before you realise it maybe isn’t as great an idea as you thought, it will be worth sitting down and objectively looking at your idea and see if it really will be a roaring success or simply more hassle than it is worth. Some of the questions you could ask yourself are:
- Is it a product that people actually want or need?
- Who is going to buy it?
- Is it something you can easily get off the ground or is it going to take a lot of time and money to get up and running?
- Can you make a reasonable profit out of it? Enough to make a living without working yourself to the bone in the process?
- Are there people already doing it and what makes you different?
- If no one else is doing it, would it be easy for someone to copy you and become a direct competitor?
- Do you have sufficient knowledge of the product or service?
- Why do you want to do it?
- Can you fully dive in or does it need to be a side hustle at first? If side hustle, how much time can you dedicate to it after work, kids, partner, free time have been dealt with?
And this is even before you get into the nuts and bolts of getting the business up and running. If you decide to proceed with the new venture some of the things you will need to think about are:
- Business structure / Business Name
- Location and premises, including rent or buy/build
- Mix of equity and debt funding available
- Making arrangements with key suppliers
- Sales & Marketing / Pricing
- Financials and taxation
- Legal factors
- Production facilities
Producing a business plan is a good method of addressing the above issues. By completing this document you are forcing yourself to think about these things and document how you are going to address them. Not only does this help you get it clear in your own mind, it will also show potential lenders or investors that you have adequately addressed these issues when making their lending or investing decisions.
If you can get through this whole process and still believe that you can make a go of turning your idea into a successful business, you might just be right.