Entrepreneurship has declined in America consistently for the last 40 years for several reasons. The drastic fluctuation of the stock market and loss of jobs to the tech industry at alarming rates, have posed serious threats to national job security — which heightens the risk factor for those thinking of leaving a job to start something independently. Such a cloudy overcast to start this article right? This is not meant to discourage anyone from seeking out a career path as an entrepreneur, but instead pose a few questions to help you gauge if your idea is set to be a successful business.
Before you begin fundraising and looking into leasing office space to accommodate this new business venture, take the following points into consideration:
Is there already a market for this?
We all know that feeling of being in a store and seeing several options for the same product with absolutely no difference in any of them outside of the brand name. The social climate we live in today is ever evolving. The main question you need to start with is: how does your idea stand out from the rest of the crowd? Consider conducting secondary research on the current market for this idea or product.
- What makes your product better than the rest?
- Look at what similar brands or companies to yours are doing — what is working for them? What isn’t?
- What are consumers missing?
- What opportunities do you have to stand out?
All of these questions are essential in developing the first steps of any good business plan and will help you take the right steps to success in executing your idea.
Is this idea substantial enough to have longevity?
With any good business idea, you have to take into consideration the longevity of your product or service — generally the more something is a necessity, the longer it tends to be around. First begin by evaluating if your idea is a luxury or a necessity.
- Where does your product fit in?
- Where do you see this product in the next 5 years?
- Is this something that you see your consumers repeat buying or only purchasing once?
Luxury or necessity, there are no wrong answers — but keeping this in mind can help you gauge how far your idea can go, or even give you more ideas.
Would the business idea require large up-front costs?
Almost all new business ventures have some up-front expenses, or start-up costs. The key to beginning a successful business is to make sure you aren’t taking on too much too fast. Once you complete the ideation phase of how your idea will look and function, now you must go beyond your initial business pitch and start looking at financial projections. Be sure early on to identify your price margin. It is also beneficial to have a trusted financial advisor to help you keep track of all of these things and the legalities around them. You can have the best idea in the world, but if your business is only making pennies on the dollar, it can and will cause financial strains down the line. The idea is only as good as the execution.
- How much money do you have stashed aside for this idea?
- How much will a service or product cost you to create or provide — and what amount of that is net profit? Have you started to set up separate business accounts?
Having an idea for a business is always a great start, but it is imperative to answer some of these questions and more before making a leap into full-time entrepreneurship and ultimately being successful. Any idea can become successful with the right preparation and proper execution.
We Buy Black Intern Writer
Elliott Mittons is a multi-disciplined marketer located in Atlanta, GA. Elliott’s portfolio boasts experience with brands such as Redbull, Bombay Sapphire and Under Armour; currently working with WeBuyBlack’s blogging department.