WAIT! ...Do Your Homework First



For every business that is a successful profitable venture, there are many businesses that just haven’t worked.

If you find yourself brimming with ideas for beginning your own business, save yourself a lot of time and money by first evaluating and testing your ideas before you jump right in and open shop. By taking the time to test your business ideas you will more than often highlight problems that you had not taken into account originally.

The highlighting of these problems will mean that your final business concept will have a higher chance of success as you have anticipated and dealt with potential problems before they appear. Evaluation doesn’t have to cost a lot of money; you just need to take the time to work through your ideas.

Here are some ways to evaluate your business concept:

  1. Ask for opinions from family and friends.
    Ask them what they think of your ideas and to be honest about their opinions. They will be able to highlight potential problems that you have not seen, or give advice on a better way to do some task. Ask if they would buy the product or service you are offering, if they wouldn’t why not? Having family and friends evaluate first will help you decide whether you are on the right track – or should stop this venture while you are still ahead!

  2. Look into yourself.
    Look at yourself honestly. Nobody knows you better than you! Do you have the drive, motivation and stickability to stay in your business for the long run? Even when you are going through a bad patch and cannot seem to gain customers let alone break even? Do you love your business idea? Unless you have the motivation and drive to succeed, going it alone in a business venture could be a bad idea.

  3. Conduct some market research.
    Start asking people about your product or service. Who is your target market? How much would they pay? Would they be interested in buying? Who are your competitors? Having knowledge of the potential market and your competition will give a clearer picture of whether your venture will be a success.

  4. Get real about your finances.
    Have you sat down and looked at your finances? One of the leading causes of business failure is lack of capital and most people underestimate how costly it is to start from scratch. Make sure you have costed correctly and have allowed for a few months of not generating any income while you get your business off the ground. Better yet, go see a financial planner or accountant who will be able to help you correctly identify how much money you will need.


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