Any new business needs to start with a business idea. It can be common for many new business owners to start a new business in a previous sector that they may have worked. For example, a chef may decide to open his own restaurant or coffee shop. A web designer may open his own online business. Other examples may involve identifying a gap in the market and open a business that takes advantage of that gap. For example, offering a product that offers a solution to a problem that customers may be experiencing. This can be a very profitable niche for a business idea. Maybe you have a similar product or service currently on the market but yours offers something different such as unique selling point that makes your product or service standout.
Other business ideas can come via inventors who have their own product that they want to bring to the market.
There are also entrepreneurs who have that Eureka moment and decide to launch their own business. Franchising is another way to start a business where you benefit from an established brand. There are many ways to come up with a viable business idea and it is advisable to do plenty of research before you finalise your business idea.
Whatever business you decide to start, there are 3 key factors to consider;
- You need to have a viable business idea
- You will need the attitude and drive to make it work
- You will need finance to start your business
Is your Business Idea Viable?
Market research is very important when it comes to choosing a viable business idea. This allows you to test the viability of your business idea, so you can be surer that customers will buy your products at the prices you have set. By researching the market, you will be able to compare your product against your competition. What will make you different? You may have identified a gap in the market that isn’t being served.
Market research allows you to gauge directly with your potential customers about your business idea. Communicating directly with potential customers, you will be able to gather data on what they think about your products and prices.
Any business should always be formed via solid market research. Collecting as much information as possible about the market you intend compete in can also help you produce a better business plan. Acting on market research with minor or major changes can give your new business a better chance of success.