The idea stacks up, so what now?
There are many issues which need to be addressed when starting a business. Given you’ve done research which shows a need in the market, then you should consider your business idea from all angles:
- marketing and promotion which show how you’ll reach your customers and generate sales, how many and at what price
- distribution: how you’ll get your products to the market
- location and production: where and in what premises will your business operate and how will you produce your product or service, what equipment, supplies and maybe staff will you need to get the sales you’ve predicted?
- operational and managerial perspectives: what systems need to be in place to cover all aspects of the functioning of the business, what about the administration and bookkeeping and who will be managing the different facets of the business?
- legal and financial issues; how will you choose the right business structure to protect yourself and your assets, what permits, licenses or regulations are required, what about insurances and risk minimalisation? What monies are required to start and run the business?
Many areas for you to investigate. Systematically thinking through your business idea will help you clarify and focus and these early investigations can be collated in a “feasibility study” which shows if the business idea will in fact work. The workbook “Will Your Business Idea Work?” (which you can purchase by clicking the link below) will guide you through this process by posing key questions for you to answer to help identify if the idea is viable.
From this process, you should look to develop a business plan which will be the guiding strategy you’ll use to put your business into practice over a 3-5 year period. The business plan indeed, the planning process is extremely important as it helps work out any problems before they happen, before you’ve hocked the house and shows how the business will work in reality. It can of course, be used as a document which will assist you to meet the requirements of financiers.
The failure rate of new businesses is very high and it can mostly be put down to two facts: they fail to plan and they do not properly manage the business. The planning process is crucial to the survival and growth of a business and should never be taken lightly. Taking the time and effort to do it thoroughly is a wise investment in both your own and your business’s future.
If you decide to travel the business road, make it a wonderful, carefully considered adventure. Happy travelling!
Article by June Hope