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What to Do When You Have a Great Idea for a New Business
There are new businesses cropping up every single day. In fact, research reveals that the percentage of new job-seekers going out on their own and starting new companies is at an all-time high. Maybe you’ve been brainstorming an entrepreneurial idea for years and already have the business plan, funds, investors, and other systems in place. Or, maybe inspiration only recently struck and you’re not sure where to turn to find the help you need. Regardless, turning an idea into a successful reality involves finding the right people and resources. Here are some next steps you can’t afford to miss.
1. Determine what solution you offer.
A successful business is one that solves a pain point or provides a service for someone. If the aim of your business idea is solely to generate personal income, you’re likely missing the mark. To begin, ask yourself what problem your business will solve and how you’ll do it. For instance, if you’re opening up an e-commerce retail store, you’re solving your shoppers’ pain point of having to visit a brick-and-mortar institution to find the gear they need.
Don’t be discouraged if, along the way, you discover that there is already a business out there that’s similar to yours. The key is to find your unique differentiator and highlight it. What is the competition not doing or not providing that you are?
2. Create a concise business plan.
This is the step that many entrepreneurs either skip altogether or put off until it’s absolutely necessary, but it doesn’t have to be a painful one. The term “business plan” can bring to mind a lengthy, 50-page tome full of detailed statistics and intricate research. In reality, that’s far off-track. A formal business plan like that is only necessary if you’re seeking investors or business partners and even then, it can be shortened. If you’re just starting out, begin with a one-page description of your business and include the following details:
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What are your goals?
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What is your timeline?
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What are your key activities?
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Who are your key partners?
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What will the customer expectation be?
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What is your cost structure?
This list isn’t exhaustive, but considering how you’ll answer these questions is a great way to jumpstart your brain. It can also help you realize where you have holes in your plan that require a little more thought. Once it’s complete, keep your plan in a secure spot and refer to it often.
3. Trim your business model down.
In its infancy, your new business will likely use more resources and money than it intakes and that’s OK. The idea is to achieve balance sooner rather than later. To do so, many business leaders support adopting a process known as a lean business model. In short, this means reducing your business model down to its core features, leaving the subsidiary pursuits for when you’re a little more established. For some, this might mean waiting to hire a huge staff until the bottom line picks up. Or, it might mean working out of your home until you can afford that office space down the street. Or, it may mean paring down your offerings from a laundry list of services to one or two. Taking this step can help you validate your product, glean customer interest in it, and generate initial brand buzz. It also simply helps you save money, making it a vital part of your startup plan.
4. Start small and measure impact.
Following the idea of a lean business model, it’s helpful to start a small, basic website that markets your product or service and analyze the traffic it receives. Even if you’ve never written a single line of code in your life, this step is incredibly simple thanks to user-friendly platforms like WordPress that do the backend work for you. This initial site can also be a place to advertise to followers and grow your brand community. In addition to your basic web pages describing what you offer, how you began, and how to contact you, consider implementing a simple shopper loyalty program, offering promotions, or providing discount codes to generate sales.
You can also use this space to add buttons to your social media sites to grow your following there. If you’re still in need of startup funds, you can add your fundraising button on a page as well, though this shouldn’t be the highlight of your site. While there are many popular resources available online to help foot the bill for your startup, their fee structures vary, as do their reach. There are also lesser-known alternatives as well, so don’t be afraid to perform a little research.
5. Set goals and seek to accomplish them.
If you’re starting a new business, it’s vital to set plenty of goals. Otherwise, you could be floundering and unsure where to go next. As such, set a few at the onset but make them realistic. For instance, you could say that you’ll write on your company’s blog page every single day, but it won’t take you long to realize that can easily lead to burnout and writer’s block.
Instead, strive to write three to five times per week to pique reader interest and stay consistent. Or, you might set a goal to reach a certain amount in sales per month. Assigning a dollar amount to this goal can leave you disappointed if one month isn’t stellar, so a wiser move might be to seek growth above all, reaching for a 5% increase in month-over-month sales, for instance.
At the end of the day, there are plenty of ways to turn your great idea into a marketable success story that people love. To get there, it just takes a little bit of time, plenty of patience, and a knowledge of these critical next steps. So keep brainstorming, organize your thoughts, and plan to get started as soon as possible.