So you have an idea, and you are willing to invest, awesome! But did you know that 90% of start-up businesses fail? The 10% that do thrive goes beyond compare. It is not just determined by the idea, but how their ideas affect their outcome. The best businesses and brands win by creating meaning and a connection with the target market in ways that 90% of startups never even thought of doing…Here are 4 questions you should ask yourself before even considering your new business venture.
What is the potential for income?
You will first need to consider your target market. If it a niche product/service then in order for your business to be sustainable it requires a large enough target market to sustain it. 1% market share if your idea is within a large market, and 10% market share if it a smaller market. What is the growth potential of your idea? It has to grow at the pace that will not only support your existing market, but sustain new ones and dynamically grow e.g. if you buy the new Nintendo Switch, and you are considered more of a veteran gamer that prefers a controller that is tailored to specific style of fast-paced action gameplay, by introducing a pro controller for the Switch, this product supports this specific target market within its niche.
Also, consider how easy it is to get into your market, the potential to get flooded or diluted can affect the product/service’s market entry barriers and therefore the potential earnings can be stifled from it. The investment shouldn’t be too little in terms of time and money spent, otherwise, you could be again within a market that is too easily flooded by other businesses and Vise Versa. Do not be in a market that requires a high market entry or investment. They must be a balance.
Does your lifestyle fit your idea?
Have you considered what you can bring to your business idea? Your experiences, your skillset, your networking etc. Look at your overall abilities, determine and question the logistics of your potential business. A considerable amount of research is needed before you bite the bullet. Having someone else look at your venture would also help in determining how feasible your idea is to other like-minded individuals.
Can your idea change with time?
While it is impossible to know what the future holds for your product/service, you should try to be more flexible to shift with the times if required. Your idea will inevitably change drastically over time, and with each iteration, your idea will not the be the same one that you started out with, but it only solidifies the worth in taking time and money to pursue your idea, if it is evolving, then it is a good sign of a healthy idea.
Will your business survive? What competitors aren’t doing?
The businesses that not only survive but thrive are the ones that do what their competitors don’t do, not what their competitors can’t do. Often this is work of empathising, connecting and creating intangible value. Think of what you can you do that your competitors aren’t prepared to do will give you the biggest advantage in the longevity of your product/service’s lifespan.
We hope that this helps with your venture into business. Everything you are working on now is an investment in tomorrow, it is always the result of many steps, of earning trust and building connections. If you view any particular idea without context, then it is almost certainly likely to fail, but remember, failure is a part of success, learn to fail with grace! The results will happen later and later is just around the corner, right now iterate on your idea, then plant the seeds for later. If you still require help with your business venture or need a website designed, not to worry… email us at [email protected] and we can provide you with some guidance.