Is your business idea viable? No matter how strong your gut feeling is, any potential business idea warrants a period of careful thought, research and planning.
Is there an established market for the product? How big is this market? Who are your customers going to be and, perhaps most importantly, why are they going to choose you over anyone else?
How Do I Know If My Business Idea Will Work?
Remember, having a great idea isn’t enough by itself. It doesn’t matter if it’s your passion, or if you’ve come up with a clever gap in a lucrative market, the company will fail if you don’t have the business acumen to make it work.
This is the part of the process where you do your due diligence and research. Consider marketing, pricing and cost base, and calculate whether you have the money to bring the vision into reality.
You also need to ask yourself some tough questions about whether you have the attitude, as well as the aptitude, to succeed.
Even if all the figures add up, and you are confident of your business skills, you need to be aware of how much energy, endurance and commitment it will take to run a profitable business.
What successful business have in common: Success comes from an elusive combination of skill, drive, passion and persistence. Without any one of these, you could become one of the 40% of businesses which don’t survive beyond the five year mark.
SWOT Analysis of Your Business Idea
One useful process for establishing the viability of your business idea is to run a SWOT Analysis, which is a classic method of listing: Strengths, Weaknesses, Opportunities and Threats in a clear visual matrix.
On a piece of paper list:
The key thing to remember about SWOT Analysis is that each section is intimately connected. Strengths create opportunities, weaknesses can be converted into strengths, and threats can be neutralized.
Conclude your analysis with the creation of an action plan outlining clear steps for moving forward.
Here’s the whole series:
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