How to Qualify a Successful Business Idea
If you’re reading this article, chances are that you have a business idea up your sleeve. Amongst your excitement and passion, however, there is uncertainty and nervousness. Is this a good idea? Will it succeed? How will I know? Ron Bakir is the founder of HomeCorp, an Australian property development company. He also started his first business at the age of 17. Using his wisdom, here are some ways to qualify your business idea.
Identify the Target Market and Demand
One of the first things you should do is sit down and think about your target market. Who is going to buy your products or use your services? What are the demographics of your market? Are they young, old, based in a particular geographical area or of a specific racial background? Next comes the research in regards to the demand for your business. You don’t have to spend a fortune on market research either; Ron Bakir made the move from Sydney to the Gold Coast after reading a newspaper article that claimed the Gold Coast had the highest mobile phone usage in the country.
Research the Competition
To complement your target market research, you should also determine the level of competition in the marketplace. Starting and sustaining an entrepreneurial venture is challenging to begin with, but if you are entering a market which is a monopoly or has a very high level of competition, your uphill climb just got harder. Determine whether there is a way to promote your goods/services differently and evaluate what makes your competitors successful. Can you outdo them?
Complete a SWOT Analysis
A SWOT analysis looks at the Strengths, Weaknesses, Opportunities and Threats for your business and is a great way to gage the feasibility of your idea. While it cannot provide you with solutions, a SWOT analysis is all about making your aware. You don’t need to be an expert in finance or marketing either, just grab a pen and a piece of paper and brainstorm.
Do the Numbers
If you have completed a general overview of your future business and you are still keen to continue, it’s time to get more specific. This is where you will need some business expertise. Either hire an expert or start educating yourself through online reading, books, magazines and/or courses. Create a detailed business plan that includes a marketing section, which outlines key strategies, and a financial section, which looks at items such as a break-even analysis, projected profit and loss statement, balance sheet and cash flow statement.
While it can be hard to mask your passion and excitement, the key to qualifying a business idea is remaining objective. Ultimately it is up to you whether you go ahead or not, but give yourself the best chance of succeeding by being prepared for the journey ahead.
What do you think? Was there a particular technique that you think you will use? Do you have a tip or story to share? Let us know by commenting in the box below.
About the Author:
Garima Mehta is a professional writer a regular contributor on different sites. She is specialized in many areas from business, marketing to health and lifestyle.
Share this:
Category: Business
