One of the biggest challenges for future entrepreneurs is not only decision-making to launch business, but also choosing the right type of business to get involved with. So, here are five things to keep in mind when assessing different business ideas to see what’s best for you.
Number 1 – Customer . First of all, you need to know and understand your client . You may find it strange to know your client before knowing what kind of business you want to do, but the answer is relatively simple: the customer is the one who defines the business, so there is no business with no customers. If you have a business idea, do not try to develop it around what you think you need or want your clients, because you risk designing your own ideas and needs. You need to learn as much about your potential clients as possible to better meet their needs and expectations.
Number 2 – Passion. Second, you must be passionate about what you are doing. Developing a business involves a lot of work and dedication: in the beginning (this means sometimes the first 2 years) you will get to work 16-18 hours a day to put your business on your feet. You will be constantly in a position to find new ways to improve and grow your business and to persuade others to join you, either as partners, collaborators, employees or customers. If you are not passionate about what you do and do not like your product or business, it will be extremely difficult to invest the time and energy needed to turn it into a successful business.
Number 3 – Competition. Third, you need to know and understand your competition. Every business has competition, whether direct or indirect, so to be successful you have to study your competitors. Competition can be a good source of inspiration and a landmark for your own strategy. In addition, if you do not know your competition and you do not know where it is willing to go to get you out of your market, you risk investing time and resources in a price war where you have minimum chances of winning instead of concentrating on the development of their own business.
Number 4 – Cash Flow. Many entrepreneurs are launching in business full of enthusiasm and very good ideas, but they miss out on an aspect that may seem boring at first glance, but which will prove to be essential to the survival / success of the business, namely money. Most focus on financial issues directly related to product / service creation and forget that business financing means marketing costs (marketing investment is higher at the start of the business), staff costs, supplier costs, and other expenses that may seem small ones that are collected separately, such as rent, telephone, internet subscription, etc. A good evidence of cash flow is essential to see if all business costs (both fixed and variable) can be covered from business revenue.
For this, you can use templates such as Start-up Costs and Cash Flow .
Number 5 – You. You are an important resource for your business, so it is important to know, to know your strengths and weaknesses and to know where you are willing to go to make your business a success.
In addition, you must be willing to invest constantly in your entrepreneurial education and learn from both your own experience and the examples provided by others.
No matter what kind of business you want to get involved with, if you go along these 5 elements, your idea will turn into the perfect business idea for you.
For inspiration, visit the Business Ideas section too!