Making the move from business idea to business owner
Moving from a business idea to growing your own business is a huge change. Make sure you have a crystal-clear sales pitch of what problem your business products or services solve, before you launch your business. This is the first step to prevent failing in your new business venture.
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Customers are not always interested in the history of your business and hearing about how you started. Most people want to know how your business solves their problems. Your business products or services should provide a solution to a problem which people are willing pay for.
Identify your target audience
Clearly define the problem your business solves. Now it’s time to clearly identify who will want and need your products and services. Think about who ideal customer and target audience, are they working full-time, what is their average income, how do they prefer making purchases, do they have children, what are some of the biggest challenges they face? Market research is important and should include; your target market, client base, marketing strategy and a marketing plan.
Develop a marketing plan including social media marketing. Free social media options are available so take advantage of platforms like Facebook
Know your numbers
How much will it cost to start the business idea on a small scale? Just the basics without any business loans. A good starting point to consider is a cash flow projection this will help you list the business income and expenses to understand the costs of starting your business. Understanding income and expenses will help prevent cash flow problems.
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Test your products and services in the business environment
Do your potential clients consider your products or services innovative and different from competitors in the market? Take time to review your business model and draft a business plan with action steps and SMART goals. The main objective of this step is to test how successful your business will be in the real world. Maintaining and increasing good cash flow should be one of your most important goals.
So, you have a clear idea of what your business offers. You know the costs to start and the profit you will make by using the cash flow template. The next step, TEST BEFORE YOU INVEST.
Yes, this step will allow you to check your idea in the real world. During this time, you should be selling your products and services on a small scale to test who is willing to buy and how much they are willing to pay.
Here are a few questions to consider after you have test your business venture:
Did your cash flow projection have the same numbers you planned?
Did your customers request changes to your products and services?
Was your pricing too low or too high? Did you make a profit?
Defining a successful business
The process of testing your business idea will allow you to understand your personal and professional strengths. Furthermore, you tested your business plan, sales pitch and project management skills. Take time to review your business model and how you can improve.
Now you have real life experience testing your business and what needs to be changed, improved or included in your products and services. Most importantly, you tested your idea on a small scale which did not require a huge investment.
The lessons you learned during the business process in a real business environment will guide you with valuable insights and primary research. Refine your business plan and clearly define the success factors for your business.
Great, now you get to decide if it’s time to launch your business
Starting a business is a journey not an event. Decide if you need help to grow your business this can include finding a business mentor
Here are a few points to consider;
Is your business idea ready to go to market (do you have customers)?
Have you defined the profile of your target market?
Do you need more time to make changes to your products, services, pricing?
Business marketing costs can be reduced by using using free social media marketing.
Will you have cash to invest or do you need a business loan?
Can you start small without a business loan and grow the business?
Do you need to register your business now or can you operate as a sole proprietor?
In our next blog post we will discuss the types of business entities you can register and the easiest way to register your business online.
