There are thousands of viable business ideas out there, and while identifying the idea right for you is a critical first step – that’s all it is – a first step. Once you have your idea, that is when the real work begins. The fact is, most businesses fail before they even start. A great idea is only good if the right person brings the idea into reality. That said, here is some good news: According to the Bureau of Labor Statistics. Conduct Market Research: You can do this yourself or hire a company to do it for you. Essentially, you want to know if people will be willing to pay you for your idea / service / product.
About half of all new establishments survive five years or more..
There is a commonly held belief that less than 1 in 10 businesses survive their first five years in business. This simply isn’t true. If you are willing to invest the time and energy into researching, planning, and investing in your idea, you can maximize your chances of success and build your road to financial independence. Here are the high level steps you will need to follow in order to turn your idea into a viable business. The only way to know that, frankly, is to ask. I’ve found that one of the best online resources available for market research is GreenBook.org, but there are many other resources available.
In this phase, you will identify if your idea really has merit in the business world. You will invest more time here than money, and the key is to determine if your idea will be profitable before you invest too much money in it. The ultimate goal of the initiation phase is to reduce your personal risk as much as possible. You need to determine how much money you need to open your business and whether or not you will be willing to invest that money.
Identify Your Target Demographic: Know who you’re selling to and target your market research to that audience. If you have a talent for developing mobile apps and you want to know if people would be willing to pay you for that service, you will need to target your research to businesses who are offering services or products that would benefit from the use of a mobile app. Conduct a Cost Analysis: Businesses require money to launch. There is no way around it. How much money depends on the business itself.
The fact is, few people have the personal funds available to startup their own company, but that does not mean that they should let that get in their way. There are plenty of companies and resources available that are willing to help you get the funding you need to open your doors. You simply need to have a solid business plan, good credit, and in most cases, collateral. The Small Business Association (SBA) is a great place to start exploring your options.