Well first of all congratulations. You and 10 other people probably have the same REVOLUTIONARY idea, that's going to make all 10 of you millionaires. I wholeheartedly agree with you, it IS a great idea. But what makes it a great business idea? If you can do the work to figure that out, then you are the one with the chance of success. Before you begin drafting your two-weeks notice at your job, and pouring your savings into buying product etc, there are a few things you should consider. We'll call these "Qualifying Questions". If you can answer yes to all of these questions, you are ready for the next step. If you answer no to ANY of these questions, sorry to be the bearer of bad news, but.....you're going back to the drawing board.
Qualifying Questions
1. Is there a market for the product/ service that I am offering?
2. If so, is that market currently saturated with businesses that are offering the same product/service?
3. Do I have a niche in this market, that hasn't currently been saturated by other business owners?
4. Am I willing to lose money?
Notice, these Qualifying Questions have nothing to do with making money, they have nothing to do with finding funding, they have nothing to do with how good or bad your idea is. These questions are the foundation upon which businesses sink or swim.
Those questions seem easy enough to answer right?
No.
Do not look at the Qualifying Questions and answer them based on what you think, or what people have told you. The answer to these questions requires work and research. Lots of it can be found via search engines, some of it will require networking and speaking with business owners for feedback.
Question 1.
To find out if there is a market for the product/service you are selling there are a few things you need to know.
a. Where will this product/service be offered?
b. Why will it be offered in this particular area?
c. What demographic will it be offered to?
d. What kind of success have similar businesses had in that area, with that demographic?
If all of these things align, you can check YES for Qualifying Question 1
Questions 2&3
These questions play hand in hand. If the market you have chosen has 100 businesses that are doing the same thing you are doing, chances are you won't have much success. UNLESS, you find an edge that makes you the competition. For example; it is possible to open a beauty supply store and be successful. However, there are beauty supply stores on every block, so what are YOU going to provide that will draw customers to your store? If you have a niche, then you can check YES for Qualifying Questions 2&3.
Question 4
This is probably the most important question to ask yourself before venturing into becoming a business owner. Here are a few things to consider.
a. 90% of startup business fail
b. You will spend money LONG before you begin making money. (the time frame depends on growth and position of your business)
c. If you don't have any money saved, you will need investors, meaning you will be starting your business OWING money.
Basically, there is no quick fix, no get rich quick solution to owning a business. So if you are not willing to spend/ invest money and time before you see results, the answer to Qualifying Question 4 is NO.
DO NOT BE AFRAID TO FAIL
The good news in all of this is that you are more likely to succeed if you have failed, than if you never try.
Ironically, Forbes Tip of the Day is
"Determination is the key ingredient for every entrepreneur" - Jason Calacanis
(and that guy is worth $20 million dollars, so i'll take his word for it)
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