Starting a business might give you the confidence you need in life. It might give you the confidence and money you need to invest in the stock market and follow the IDXX stock forecast, for example. When you come up with an idea for a great business, the excitement you feel about it may give you enough energy to launch your product or service as soon as possible. However, statistics show that more than 50% of businesses fail within five years and 30% fail within their first year. Therefore, you need to ensure that you practice your due diligence when it comes to carefully turning your idea into a business. In this post, we list some essential things to consider when it comes to turning your idea into a business opportunity.
1) Research the Market
While you may assume that your idea is a no-brainer that’s guaranteed to make money, you need to ask yourself, “Is there a market for my idea?” Many companies launched their business with little preparation simply to find out that other individuals had the same idea and were able to capitalize on the market first. In some instances, the market may be so small, that you wouldn’t be able to make revenue from it. Therefore, you need to conduct a thorough market analysis of the target audience you wish to pursue to ensure that your idea will satisfy a want or need.
2) Establish a Financial Plan
If market research leads to positive indicators, the next thing you’ll need to do is to develop a financial forecast. This can prove to be especially useful when you’re in the midst of applying for financing. Most financial experts agree that the better your financial plan and market research, the more likely you will be able to secure funding. This not only applies to financial institutions alone, but friends and family members as well. Your financial plan is a critical component of your business plan because it tells you how the digits will add up. It should consist of good estimates of cash flow, profit/loss, investment stages, and overheads. Even though the numbers you come up with will be primarily theoretical, they should be based on reality.
3) Prepare Your Idea for the Market
Once you’ve determined that there is a market for your idea, and have the numbers sorted out, you need to prepare the idea for your target audience. Ideally, you should be able to quickly describe what you’re providing. Customers have short attention spans so you’ll need to be able to convey how valuable your product/service is in seconds. One of the things you can do is to focus on the benefits that it provides. For instance, when Steve Jobs launched the first iPod back in 2001, he didn’t initially describe it as being an MP3 player with a massive 5GB hard drive. He described it as being “a thousand songs in your pocket.” By introducing the product using the aforementioned phrase, customers were able to understand Steve’s proposition immediately.
4) Develop Your Brand
Take a look at the most profitable companies in the world. Oftentimes, they are instantly recognizable in a multitude of ways. For some companies, it may be their logo, use of imagery, tone of voice, or their colors. All these come into play when it comes to establishing your own brand. The key thing to remember is that you should create a new brand that is able to quickly catch on and receive recognition.
5) Develop a Brand
Your brand should be a reflection of your company’s values and it should also reflect the values of your target audience. For instance, if you’re selling an organic product, your brand could reflect the fact the business is environmentally friendly and does not support cruel animal slaughtering practices.
6) Establish a Legal Company
Once your idea has been thoroughly tested and refined, this is the stage where you would formally establish your business. There are several routes you can take to accomplish this. In some instances, you may be able to do it on your own, but you could be shooting yourself in the foot before you get off the ground. Ideally, the best approach would be to use a company formation specialist. They can help to explain your options, evaluate your needs and provide info on the best path forward. They also work to handle all the necessary paperwork and can help you to create a corporate bank account as well as to ensure that you remain legally compliant throughout the entire process.