So, you have an idea for a brand new business… congratulations! The first step of coming up with an entrepreneurial idea is sometimes the hardest one. Coming up with a business idea isn’t just a color scheme and logo; business ideas should convey a strong message and solve a problem. Before you start delving into business loans and nitty-gritty details, ask yourself these five questions.
1.Why Am I Doing This?
What is your goal with this business? Is it to simply have the title of an entrepreneur? Your reason for starting a business should be passionate. It’s no secret that many start-up companies fail within five years. Some reasons that businesses fail are bankruptcy, being unable to compete with other companies, or when other life events interrupt. So, if you want your business to be successful, you need to have a clear understanding of your motivation and the type of company you should start.
2.What’s My Vision for this Business?
Once you realize what you want to do, it becomes easier to envision the future of your business. As you brainstorm, write down your vision. These ideas can transition to your business plan. A business plan outlines the goals of your business, how you plan on achieving them, and the timeline you predict. You should discuss your vision and plan with others to make sure your goals are realistic, plus, sharing your plan with others will help keep you accountable. Creating a vision should excite you; if you feel that your plan doesn’t fit with your “why” then you should make some modifications.
3.How Will I Start?
Thinking of a business idea and how you’d make it work is one thing, but making that idea come to life is entirely different. Why? Because it requires money. Starting a business is not a cheap endeavor. Websites, office/retail space, and product manufacturing all cost money. You should never cut corners, but when you are first starting and can’t afford some necessities, make a list of the funds you will need to start. If you are selling a product, you might consider selling it online or at outdoor markets before you decide to rent a space. This can save you start-up costs and can help build a client/customer base.
4.How Will I Manufacture My Product?
If you want your business to manufacture and sell a certain product, then you’ll need to research different factories and businesses that can help. Besides researching, try asking other businesses for referrals. Once you decide on a manufacturer, you’ll need to develop a contract that protects your intellectual property and prepares your prototype. Manufacturers like dwinc.org use these prototypes, along with a detailed description to design your product.
5.What’s My Competition?
Know your competition before you start. Even those with a really unique business idea may be surprised to see there is already a market for it. Research your competition and try to learn what weaknesses they seem to have so that you can avoid them. Being aware of your competition allows you to make differences in branding, advertising, and your product.
Before you jump into the exciting chaos of starting a business, consider your answer to these questions.
