Many people have great ideas, unfortunately only a small percentage turn them into successful businesses.
An idea is not nearly enough of what it takes to turn that figment of your imagination into a tangible product or set up services that will be sought after by clients.
You need a stellar business plan, a certain sum of money, and market research to get your business off the ground.
Business Plan – A business plan is a formal grid map of all of your business goals, and plans on how to achieve them. This document is necessary in order for you to think about all the possible challenges ahead, and make a plan on how to tackle them.
It will help you to start out your business, and also to think three to five years ahead. In order to get a firm of the ground, you need to not only consider how your current finances will get you up and running, but how your projected income will change over time. This business plan will help you refer back to it in the first few years to help you keep on track with your goals.
Financial Backing – In order to turn any idea into a business, you require capital. Different businesses require different financial investments, some more and some less; however, start up costs are inevitable. Some individuals prefer to invest their own savings into their project, cashing out their savings accounts, taking a second mortgage, or using their retirement funds. Others choose to take out loans from the bank, seek investors or even crowdfunding sources, which allow multiple people on the internet to contribute money for a part of the profits, or at an agreed-upon percentage.
Market Research – One of the most important steps before fully committing to the idea is to do market research. This involves polling groups of people, either random or specific, depending on your needs, about the usefulness of your product or idea. Just because you believe that there is a current gap in the market, and your idea will solve that, doesn’t mean others will. Market research will provide you with unbiased opinions of others so you have a good idea of how your product will likely do when it’s available for sale.
Play it safe, and follow these three essential steps to successfully turn your idea into a business.
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Head of Training and Development
Originally published: 10 September, 2015