If your business idea fits these next three points – then you have a winner.
I realize that this is a very light look at an important issue – thinking about starting up a small business, and you need to do what they call “due diligence” very carefully.
However this short post will give those of you who are new to the idea of owning your own business a basic idea as to what you could have to do before you start
Business start-up point number one.
Supply and demand
The very first – and most important factor is demand.
If there is a demand for a product or service then you have a perfect starting point.
What you need to do here is to see how hectic the demand is for that specific product.
Your research needs to be very carefully done here, as an over saturation of suppliers is not the worst thing. Remember that if you can supply the product or service cheaper, more efficiently and with top notch service – the level of competition is not that important.
What you need to ascertain is how big the demand for the product or service really is, and will there be a limit to how big your business can grow to.
Where I operate the most (from a small business marketing point of view) is online, and it is extremely easy to see the strength of your competition.
I can do a detailed enough assessment of the levels of demand/levels of competition/strength of that competition very easily online. In fact I could get a 90% accurate report (that could be safely relied upon) within 15 minutes.
Business start-up Point number Two
Supply and demand
Now if the demand for a product is high, the next crucial item is supply.
If you can source and supply that service or product at a competitive level – you more than likely have a winner.
Naturally this is not that cut and dried, as you need to take into account a ton of factors here in the details.
Things like -
- is the interest for that product increasing or decreasing?
- Is it a local or international trend or need?
- Are you relying upon a single supplier?
- Can you “up-sell” your clients?
- Is there potential to get those clients onto a second income stream? (IE a monthly maintenance plan etc)
At this point every business will have different details that will need consideration.
Business start-up Point number Three
ROI – Return on Investment
Your return on investment is the final assessment point.
Naturally this one will decide if your business will make a profit or not.
The first two simply tell you there is a need for the product and you are able to meet that need.
This last section will be the vital one.
Here you need to do professional Business planning and cover all details and aspects that make up the nuts and bolts of owning a business.
The accounting side of a business is where they stand or fall, and knowing every detail down to the smallest points will be what will prove the viability of your business idea and equally give you the confidence to survive the tight spots – when they get to you.
The research that you need to apply to planning a new business is very important, but you should not let it stop you from getting started.
I offer a service where I sell complete businesses that are Internet based, and you could order one of these from me.
Click on the image above and you will be taken to the page that explains more about that.
You do need to know that I have very limited spots available, so if you are interested we will need to discuss this at a detailed level.
Thank you for reading this short post, and if you enjoyed it or found it interesting I ask you to please “share” it below using the social buttons.