So you’ve spent some time thinking and you’ve decided to quit your day job and start a new venture as a business owner with your great business idea! Wait a minute, let’s take a step back… Before committing to starting your business full time, it’s important to evaluate the potential of your business idea.
Here are some things to consider when testing the feasibility of your business idea.
- Find your target market.
A key factor in running a successful business is having customers who want to buy your product or service. Picture your ideal customer, their age, gender, income, and location. This will give you a better idea of who you are targeting and how many are in your area.
Conduct a market analysis to determine how big the market is, how saturated it is and if there is room to add your product or service to the mix. Once you have done your research, then you can decide if it is the right target market for your business.
- What makes your product/service unique?
While you researched information to identify your target market, you probably found other businesses with similar products or service in your area. This doesn’t mean your business won’t work, it just means you will have to identify what makes your product or service different from the others. You can do this by creating a unique selling proposition, an effective tool that helps you define your brand and make your business more memorable.
- Research your competition.
Along with knowing who your ideal customer is, you also need to know who else is trying to target that same audience. Knowing who your competitors are and what they offer that’s different from your product or service is important to understand before you move forward with your business.
- Financial forecasting.
A big concern for most business owners is money, especially at the start. What will it cost you to get off the ground? Where will your capital come from? What are you start-up and ongoing expenses? What is your earning potential once you’re up and off the ground? These are all questions you should have answered before starting your business so you have a better chance at success.
Going through this type of evaluating may seem like a long process but it could save you time and money in the long run. Once you’ve done your research and have decided your business is feasible, the next step is to create a business plan.
For more information on business planning, contact the Cornwall Business Enterprise Centre.