Great ideas are big business. And as entrepreneurs, we all dream about coming up with \u2018the next big thing.\u2019 So if you\u2019ve been struck by a bolt of inspiration\u2013congrats! You\u2019ve taken the first step. But as every small business owner will tell you, these early stages can make or break your company.<\/p>\n\n\n\n
It might be tempting to skip the research phase or just jump in at the deep end with your new idea. But setting up a business takes time and financial investment. That\u2019s why we\u2019ve put together this guide, to help you find out if you have a viable business idea on your hands\u2013before you invest your hard earned cash.<\/p>\n\n\n\n
Got a new business idea? Let\u2019s get started! Take these steps to evaluate your idea before setting up a business and building a business website<\/a>:<\/p>\n\n\n\n It\u2019s easy to procrastinate and put off getting started on your business plan. But look at this as an opportunity to get your ducks in order. Jot down what your business idea is. Then follow-up with sections on:<\/p>\n\n\n\n Writing a business plan from the start can save you a whole lot of heartache down the line. Your business plan\u2019s job is to guide you through this process, encouraging you to consider your idea thoroughly, and assess the risks before putting your all into a new venture. There are also lots of example business plans<\/a> you can check online to help you get started.<\/p>\n\n\n\n Look at your business plan like an opportunity to sit down and look at the numbers. At the end of the day, you\u2019re setting up a business to make a living. Before you start your company, you\u2019ll need to decide how much money you want to make from it (is this a part-time venture, or a full-time career?) and then work out how much business you\u2019ll need to do to turn a profit. Do your estimated costs and projected profits add up? Be realistic!<\/p>\n\n\n\n Still feel like you need some help? Use this expert advice from Jan Evers on how to create your business plan<\/a> to guide you.<\/p>\n\n\n\n So, you\u2019ve heard the phrase \u2018putting the cart before the horse.\u2019 But have you applied the same logic to your fledgling business? If you go ahead and launch your product or service before testing the market, you could be heading for disappointment down the line. Here\u2019s exactly how to avoid it.<\/p>\n\n\n\n You have a practical business idea, but is there space in the market for it?<\/p>\n\n\n\n Ask yourselves three questions:<\/p>\n\n\n\n Your idea could be brand new, but more than likely, there\u2019s already something similar out there. Even the most ingenious business ideas rely on market demand. The real question is, is there room for one more? Either way, your answers will help you discover if you can offer a unique solution to an existing problem, or do it better than the competition.<\/p>\n\n\n\n No matter how great your business ideas are, you\u2019ll always have some kind of competition. And that\u2019s no bad thing. The key when evaluating your business idea is to find your competitors<\/a>, look at what they\u2019re doing (or failing to do) and identify what you can do better.<\/p>\n\n\n\n Direct competitors are other companies who offer exactly the same product or service as you. For example, if you open a pizza shop you\u2019ll be in direct competition with other pizzerias in the area. When you start your own business and Jenny from accounts fancies a pizza\u2013you\u2019ll be competing for her cash with neighboring pizza shops and restaurants that also serve pizza.<\/p>\n\n\n\n Indirect competitors sell different products or services which satisfy the same need. You\u2019re heading home after a long day at work. You can\u2019t be bothered to cook, but you have a hankering for a stuffed-crust margherita. You might call your favorite pizza store and put in an order. But maybe you\u2019ll decide to stop in somewhere for a burger and fries, instead. Both products are going to satisfy your craving. If you\u2019re the pizza shop owner, the burger joint is your indirect competition.<\/p>\n\n\n\n Once you know what\u2019s out there, consider how likely customers are to choose your company over the alternatives. Are your plans to compete for the same customers realistic? Will your customers have a reason to choose your business? This reason is called your \u201cunique selling point\u201d or USP and it\u2019s what sets you apart from competitors.<\/p>\n\n\n\n Even if there are hundreds of fast food outlets in your area, opening a new pizza shop might still be a viable plan if\u2013for example\u2013your USP will be that you\u2019re the only vegan pizza shop in town.<\/p>\n\n\n\n Now that you\u2019ve spotted a gap in the market for your new company, it\u2019s time to get to know the people who\u2019ll be buying from you. Who are your customers and what do they want? How will you help them reach their goals? Doing some market research will help you find out.<\/p>\n\n\n\n Gone are the days of door-to-door surveys. It\u2019s now quick and easy to get answers from potential customers online. You can use free online software like Typeform<\/a> and Google Forms<\/a> to create basic questionnaires then share on social media. If you still prefer to keep things old-school, or if your potential customers aren\u2019t tech-savvy, you can always print off your survey questions and hit the streets!<\/p>\n\n\n\n However you share your questionnaire, use it to find out what kind of people are interested in your product, what they need, and how likely they are to become paying customers. About 8-10 questions are generally enough to get some useful intel, without boring the socks off anyone.<\/p>\n\n\n\n Use your responses to build up a picture of your potential customers. You\u2019ll then be able to consider your business idea from their perspective and decide if it can meet their needs.<\/p>\n\n\n\n To track down potential customers, you need to think like a customer. Try searching for the kind of Facebook groups they\u2019re likely to join. For example, if you want to start a dog walking service in Portland, try looking up \u2018Dog owners in Portland\u2019 or \u2018Dog-friendly Portland\u2019 to find groups of people who could be interested in your business. If you\u2019re going to be starting your own business offering a high-end wedding service, then hanging out in online bridal forums or attending wedding fairs would be good starting points.<\/p>\n\n\n\n What\u2019s the best way to find out if your business is going to work? Give it a try! But there\u2019s no need to spend time or money on testing your idea. You can create a free website in minutes with Jimdo’s website builder<\/a> and use it to showcase your product or service without putting any extra work in. Plus, if your idea is a winner, you\u2019ll already be set with all the advantages of having a website for your business<\/a>.<\/p>\n\n\n\n Once you\u2019ve created your website, share it with your friends, family, and colleagues to get instant feedback on your idea. Or better yet, share your new website on social media and monitor the response. This could be the first step in creating a social media strategy<\/a> for your new enterprise.<\/p>\n\n\n\n A real customer might even find your company through your website. Then you\u2019ll know you\u2019re in business! Create a website<\/a> and give it a go because trying out is the best way of finding out.<\/p>\n\n\n\n Ready to get cracking with your business idea? Follow these steps to check if your idea will work before starting your own business. Build your business website<\/a>, make a business card for your business<\/a>, talk to your customers and ask for feedback on social media to find out if your idea could grow into a thriving enterprise. You can even try out multiple ideas this way\u2014why put all your eggs in one basket, after all? And if one idea isn\u2019t a winner, don\u2019t worry. You\u2019ve just saved all that time and money to spend on your next big idea!<\/p>\n\n\n\n\n
Bring your business online with Jimdo.<\/h3>\n<\/div>\n\n\n\n
1. Write your business plan<\/h2>\n\n\n\n
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2. Assess market demand<\/h2>\n\n\n\n
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Bring your business online with Jimdo.<\/h3>\n<\/div>\n\n\n\n
3. Find your competitors<\/h2>\n\n\n\n
Research direct competitors<\/h3>\n\n\n\n
Don\u2019t forget about indirect competitors<\/h3>\n\n\n\n
Can your business idea compete?<\/h3>\n\n\n\n
4. Get to know your customers<\/h2>\n\n\n\n
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Bring your business online with Jimdo.<\/h3>\n<\/div>\n\n\n\n
Not sure where to find your customers?<\/h3>\n\n\n\n
5. Ask for feedback<\/h2>\n\n\n\n
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