Starting a business is no longer a taboo in today’s society and is seen as a healthy culture. If you reverse the reel, it would not require you to go long back to observe that businesses were seen as the professions of less educated kind.
Intellectuals pursued the trendier career path of obtaining graduation and management degrees and working for high end companies. However, the success stories of many small sized industries have given way to acceptance of business as a profession in a rather open minded community today.
If you have any idea that has been bugging you for quite some time now, it is time you take the leap of faith and experiment and test yourself in the market. We don’t deny that there are no risks, but if you plan well and structure your business model to deliver to your objectives, there is nothing that cannot be done. There are many critical aspects of market and hence you need to understand it all first.
Any idea that clicks your mind should not let go of and also not every random idea can lead to be a potential business. What is most important to sell your idea is its uniqueness. It may be anything from an entirely new concept or enhancements to an already existing product or a new variety of a defined product type. As long as your idea addresses an issue with simplicity and proficiency, in whatever terms like price, concept or service, it can be molded into a feasible business form. The key to stand out of the crowd is the idea analysis.
What to do
- The first and foremost thing to do is to study the market.
- Do not ever hesitate to take help from experts and market specialists. It is better to spend money on prior analysis than investing huge amounts and suffering loss later into the business.
- Market conditions never remain constant, nor is it possible to know the exact dynamics over time. Business experts understand the market quite well and make opinions on the basis of previous records and anticipated trends. Such advice is helpful in picturing the presence of your company in the market and predicting its share and position over time.
- Another aspect of idea conversion is to understand the demands of the market. There are large varieties of every type of product available in the market but still people look forward to better solutions and advanced features. Do not waste your time and resources in working on a project that is way off base or ahead of time.
- Make sure that your product has enough support system already available. People would not like to invest on products that need additional backing. The product should be simple and yet complete in itself.
A naïve approach is not an underside of your business. The creativity and innovative quotient is considered highly and if implemented properly can resulting revolutionary changes in the industry. However, it is not always possible to be able to translate the idea to suit the business needs. It is not because you are passionate about something or because people love a particular thing will your business in that area boost. Experience has a major role to play here.
What to do
- Seek help from people who are already in the business for some time now and who have been making statements in the market by their smart moves and vibrant techniques.
- Try working in the field you are interested for some time to gain adequate knowledge and understanding of its processes and strategies. This experience will come handy when starting your own business on several fronts.
- Do not run into making hasty decisions. An expert panel can do the regressive and predictive analysis before setting on to any action plan.
- Realize that you cannot be expert in every field. Make it a point to team up and define roles and responsibilities of every group. Experience and expertise when clubbed together can bring about extraordinary results.
- By experience we do not mean to persuade you to follow the journey of an already established brand. Do read the success stories but understand well that not every business is the same and not every approach generates similar effects. Structure the system as per your concept but on reasonable grounds.
There is no point designing and developing any product which has no reachable market. Unless you are planning to go knocking at everyone’s door to sell yourself or hoping to penetrate through an international market magically, take time to know where and how you will sell your product. It does not require any brainstorming or complex analysis to find the relevance just look around yourself.
What to do
- Understand what your products intend to serve and to which set of people. Launching a complex technical laboratory device in a commercial market is not going to benefit at all. Similarly, a product which has already many outlets in a location would just get lost in the crowd.
- The survival of a business is sustained by its need and its ability to deliver to those needs. Hit the right market at the right time.
- Make sure to establish your business such that it has a balance in obtaining resources and responding to market.
- Do not ignore the future implications of selecting a marketplace. If there is a proposition of a bigger asset nearby a small market area, it is better not to jump in the experimental fire.
- Start a business where people can acknowledge its presence. A store located in the outskirts cannot be expected to attract the city crowd on a regular basis.
- Study the lifestyle and purchasing behavior of the intended customers. People are likely to visit a retail store if it comes on the route of their travel rather than walking extra distance for some product that is more readily available in their neighborhood.
- Business loan
It sounds like an oxymoron but you need money to make money. Businesses cannot be started and run on pocket savings or some thousands of bucks. We are talking of hundreds of thousands here. Borrowing money from friends and family is never sufficient, moreover it adds to burden if they constantly start pushing for it. Investment and revenue never work on the same rates, fluctuating every now and then, sometimes, costs become much higher than returns or the rate of return is excessively slow. Go for options which give you tolerance to adjust to changing market conditions.
What to do
- Understand your obligations clearly, before you choose any mode of funding. Taking a lot of money unto your credit, without having a backup funding plan in place can land you in serious troubles.
- Most start-ups fail due to insufficient capital to keep them covered in the initial phases. The first release of your product may not fit the market perfectly and may need refinements in consequent releases. Make sure you have funds available till you can stabilize yourself in the market.
- Look out for angel funding or investors, who are interested in your project, rather than just in the returns. This is helpful because they understand the market ups and downs and do not harass you for money.
- Small Business Associations an organization, which supports funding of small scale businesses or start-ups. Banks also roll out various schemes for encouraging business start-ups. Reach out to these financial institutes for business loans.
- There are many capital raising techniques like asset based loan, IPO, direct public offering, venture capitalists etc. Depending on the type and size of your business your requirements may differ and hence, you need to think carefully, before you make commitments on financial grounds.
- Contingency plan
There is never a foolproof guarantee that a foolproof plan will never fail. Business is not the area where you get a second chance, more so, because you are hit so badly, it is impossible to make a comeback. You must accept that you may fail, but do not make it a fear rather make it a strength. Lay down a fallback plan necessarily in new business start-ups.
What to do
- Businesses deliver slow returns in the starting period. Your funds may continue to go while generating small revenues. Do not give up, in these cases. Understand that this can be an obvious scenario pertaining to the competitive market out there.
- Make sure you have a well thought contingency plan in place before you kick start your business.
- This may come in the form of two or more parallel streams of business, generating revenue, either actively or passively. Support of working spouse or a second vendor may prove very helpful in critical situations.
- A contingency plan may also come in the form of learning new skills for your survival in unfavorable conditions.
- Regular income is extremely necessary to keep a check on quality and quantity fronts if you run out of funds. Compromising on quality will incur more loss to you while lack of supply would never help you regain the strong financial position.
It takes a lot of passion and courage to sustain in the business industry. The mantra to success is putting the right amount of thought and the right amount of efforts in your endeavor. Good luck guys!