Okay entrepreneurs, a great idea just crossed your mind and you believe it’s going to be the next big thing. You’re pumped up and adamant it’ll work out wonders for you. The thoughts of making it to the top are compelling you to go for it, regardless of what others have to say.
Now, calm down.
Sit back and take a deep breath before you jump all in. It’s only natural to get all excited but have you asked yourself the most important question, “am I ready?”. Just when reality hits you and you realize the competitive milieu we live in, volatility starts to illuminate and you become more obvious of the daunting task lying ahead of you.
According to Brad Sugars, founder of ActionCOACH, ‘the more you’re aware of your numbers and the market before you dive in, the better it is for you ultimately’. Asking yourselves these questions is not intended to demotivate you but to make you aware of the ways on how to proceed forward.
Before investing in your proposition, you must ask yourself these three questions. If the answers don’t sound pleasing to you, you undoubtedly need to reassess your strategies. Note, entrepreneurs who succeed do not stick to one path and believe it’s successful, but they also judge and accept when an idea is unsuccessful.
1. Is there a niche for my offerings?
Consumers spend money here and there and market dynamics change almost instantly with the rapid changes in today’s world. Understand your buyers’ persona before you start putting in your sweat and long hours.
Be sensible in mature markets as there is competition from every corner. The marketplace is overcrowded and your disruptive idea needs to stand out in order for a customer to take notice and move into the purchase cycle.
Do an in-depth analysis of your competition Hundreds and thousands of entrepreneurs just like you with adrenaline rush are competing with each other. Know their strategies before diving in.
Test out your idea on a niche. Make a prototype and test it out on an audience and record their reviews minutely. This will give you an insight as to what will click with your intended target market.
2. Do I have enough resources?
Ideas can be great and game changing, however, lack of resources will result in them dying out. Make sure to have a financial backup of at least 2 years to cover your business and personal expenses.
With that being said, a question arises, “how do you determine how much capital you need?” Calculating the amount of capital you require depends on upon your current personal position. Ask yourself, do I have a family to support? Am I single? How much am I willing to let go before my business turns into a profitable position? By having a decisive number which projects your spending and revenues, you’ll be in a concrete position to bargain the likelihood of your proposition.
3. Do I have a passion for running my business?
Naturally, when you have an interest in something, you’re more than willing to invest long hours and give in your best which results in fewer chances for failure.
The key to ensuring your success is to find any aspect of your business that you can nail better than the competition.
If you’ve read this far, it means you’re serious about your business. However, if these answers don’t please you, it’s nothing to be discouraged about. You just need to clear your focus and come up with a new game plan. Adjust your strategies according to market dynamics and you might just find the best one.
What do you think? Have you already started your own business? What questions did you ask yourself? Let me hear your thoughts in the comment section below.