If you are thinking of setting up a business and working for yourself, you might be wondering what the core elements of a good business idea are and when to get your business off the ground. I know how daunting it can be setting up a business, so here are a few things to consider based on my experience.
Does it Solve a Problem?
Will your business solve a problem for a percentage of the population? If the answer is yes, then you are over the first hurdle. When I started my business, I understood the value of businesses using social media. The problem I knew existed (from previous experience) was that many business owner either didn’t have the time or the expertise to manage their own social media channels. This is where I come in, to advise, to guide and to manage.
Will it Generate Profit?
Not all great business ideas are capable of creating a sustainable profit. Take a look at similar businesses to your concept and see how they are performing. The most simple way to work out your profit is to look at a forecast for sales minus your business expenses (costs of running your business). This will give you a gauge for what your potential profit is likely to be. This is only a basic overview and I would always advise speaking with an accountant to look at your concept and see if this is viable. If you need a great recommendation for an account, check out Ian Critten Accountancy Limited here. (Let me know what you think to his logo design as well)
Is There a Gap in the Market?
If there is a gap in the market for your product or service then that is an excellent head start!
If not, could you create a product or service which will fit nicely into an existing niche? This is often one of the hardest elements to starting a business. Over the years, I have had many business ideas and then after some research, realised that this has already been marketed and/or there wasn’t a big enough gap. It’s frustrating but that research has saved me loads of time and money!
Is it Scalable?
The essence of a good business is scalability. Does your idea have the potential to grow, gain more profit and create more jobs for the economy down the line? At times, businesses often diversify to increase the chances of scaling. I provide more services than just social media, with a view to being able to help business with different aspects of launching/marketing their business online.
So, When Should You Take the Leap of Faith?
If you have answered the questions above and your business plan still seems like a good option, then how do you know when it’s time to take that famous leap of faith?
You are Determined to Succeed
The business world takes guts and determination. Do you have enough of it? You will take knocks as you go along but the results are worth it! For me, I knew that I was determined to make my business succeed. I also knew that it would take time and dedication to making it work. It’s all too easy to think that things will just ‘happen’ for you. I work hard and put the hours in each week. I am thankful that I was aware of this at the beginning so working long hours did not come as a shock to me.
You have Personal and Financial Support
Do you have a financial support cushion so you can still live and pay your bills as you start your business? Perhaps you will remain employed for the short term or you have savings to help you.
Personal support is more difficult to define but just as important, do you have someone in your life to support you and have faith in you as you start your business? This could be anyone from a mentor, spouse or a family member.
Your Business is Viable
Map out your business.
How will you start?
How will you market it?
Who is your competition?
How will you deliver your product/service?
Do you have the legalities sorted?
If you are struggling with answering any of the questions above or you would like some more support as you start your business, I would love to chat with you. Contact me here or read my blog post here.