6 Tips Which Will Transform Your Exceptional Idea into a Prosperous Business - Tip 1

This article puts the beginning of a series of tips which will assist you in transforming your great idea into a successful business. The tips listed below sequentially follow the steps you need to make. Therefore, today we will have a look on the first step.

1.  Have a stunning, different, exceptional idea
2.  Choose the most suitable structure for your business
3.  Think branding
4.  Appoint an accountant
5.  Get ready to launch
6.  Open for business and start making money

 

Tip 1: Have a stunning, different, exceptional idea

This is probably the most important part. No business idea means no business. Most people start business because they truly believe in one.

But remember, NOT all great ideas translate into great businesses. One of the first things that you need to learn when starting a business is to distinguish between your heart and your mind.

It is your heart that will guide you through difficult moments and will make you live, breathe and dream your business. But it is your mind that must make the decisions.

The combination of the right business model, pricing, funding, marketing, people to make it work and indispensably enough customers willing to pay for it will turn your idea of fantastic product into a successful company.

It is possible to feel lost when evaluating your idea, especially if it is the first time when starting a business. So what do you do? A good start is to check out the following pointers to make sure it is worth diving straight in:

• What is the market for you? – Is there a market at all? Is it big enough? Can you precisely define your target audience? Is there a way to locate and reach them effectively? How well do you know them? Are they ready for your idea?

• Have you created the right marketing mix? – Hardly can somebody say how many times the old 4Ps of marketing have been broken down. But no matter which model you choose, it will define your business (with different level of precision). When filling up the boxes don’t forget your USP and the risk of ‘me-too’ products. Protect your intellectual property in order to prevent competitors copying you.

• Can you handle the competition? – You must study your competitors really well – their offerings, customer service, values, USP, positioning, even differences in the target audience and business model. Then be honest and realistic when evaluating where you stand. Only then you may think about positioning.

• Is there room for you? – Answering this question will be only possible after you have understood the previous three.

• What’s the business model? – Where will your money come from? What do you really, really, really sell? For example, Metro sells advertising space. Although it is a daily newspaper, Metro does not make money from customers who buy the product. Another example is Canon, whose revenue is made up mostly of ink and toner sales and not of printers as it looks at first thought. Can you add extra service to increase the money stream? Are your model and idea strong enough to turn profit?

•  Can you fund it? – One of the most common mistakes, which budding entrepreneurs make, is to go into business without having the money for it. Fundamentally, people start business to make money. But what they don’t usually know is that no matter how much they think they need, they need more. Money is never enough so keep your costs low. When will you break even? When will you turn profit?

• Have you deployed the right research strategy? – Essentially, you need to answer this question for one reason. You need to know if you are making and informed decision. Therefore, be bold and pro-active and carry out steady secondary research (relies on already published data) and conduct primary research (relies on data you collect) in order to fill the gaps in your knowledge of the market. Bear in mind that in primary research you can choose between or combine quantitative and qualitative research depending on your needs. No matter what approach you choose, you must ensure that: first, you do carry out a research and test your idea; and second you remain impartial.

By answering the questions in the article you will do considerable work on your situational analysis and spend a lot of time thinking about what you want to achieve. You should be able to formulate your SMART objectives (specific, measurable, aspirational, realistic and time-based objectives) and overall strategy. Once you have these two in place you can continue with your business plan, the tactics of executing the strategy and the rest of the steps.

Stay with me for the rest of the business transforming tips. Also, share this article if you think it will help someone you know. And feel free to ask any questions that interest you.