A business idea is the starting point for any startup with an entrepreneur and founder at the helm. This is important because a great idea is the beginning of a new life, the life of a new business, and the life of an entrepreneur.
So, you have a business idea, and now the crucial question is: what to do next? In many ways, the good answer is to take action. A good idea is essential only at the initial stage of a startup. As a rule, the initial idea is crude, then it will begin to improve and will be overgrown with new ideas. It also happens that the first idea is just a starting point for another brilliant one that is born in the process of developing your business.
Note that a modern person always has a lot of ideas. It is typical for people, in general, to fantasize, dream of a better life, a better environment, a better world. However, in many cases, ideas both come and go.
But there is a question — what did successful entrepreneurs worldwide do after they had a good business idea? How did they manage to create amazing services and products known all over the world? Here we will cover all the entrepreneurial tasks and questions that will need to be completed and what will need to be undertaken and learned when you are on fire with a good idea.
1. Determine what products and services the business idea covers
Every business will rely on what it will sell to customers. It can be a product or a service. At this stage, you have an idea that covers a product or service for your future business. The next thing you should do is to clearly and accurately define these products or services as a result of the original idea.
You will need to answer the following questions in detail:
- What product or service do you offer people?
- What problem does your product, service solve?
- What are the features, characteristics (pros and cons) of these products or services?
- What advantages and benefits will your products or services bring to your potential customers?
- What types of additional services will be offered by this product or service?
2. Identify all the resources you need for your business idea
So, you already have an idea: you have clearly specified your products and services, defined the market in which you will offer these products and services, learned everything about the main competitors, how they operate, what they offer on the market. Now is the time to determine the necessary resources you will need if you want your business idea to become a reality.
You will need to define at least the following:
- How many human resources do you need to operate your business?
- What kind of intellectual capital do you need for your business?
- How much financial resources will you need for a business — at the start and in the first year of activity?
- Where will you find these financial resources?
- What material resources do you need?
- Where do you find these material resources?
- What information resources do you need?
- What will be the sources of these information resources?
- What additional things will be needed for the successful implementation of your business idea?
When you answer all the questions in detail and conduct research about your business idea, you will gain an understanding of the future of the business, market, and business model.
It is possible that to cover your financial expenses, you’ll decide to engage in Forex trading. It is a good option for South Africa and if you want to learn more about it, visit the Forextime blog, where you can find all the necessary information. You can start with ECN trading and then continue learning the main notions and strategies.
3. Identify the main competitors
Next, having a business idea, it is crucial to define the competition in the market. Don’t make the mistake of underestimating your competitors — it can lead to business failure. The success of your business will depend not only on yourself but also on their management efficiency and market knowledge.
It is necessary to pinpoint the main competitors that are already operating in the market that you identified earlier for the business idea. As an entrepreneur, you will need to answer these questions:
- What are the five most significant market players in the industry in which you classify your business idea?
- What, where, and how do these five market players offer products and services?
- What are the main characteristics of their products or services (strengths and weaknesses)?
- What are the benefits they provide to the market with their products or services?
- What is the market resistance associated with the entry of new competitors, and how can this be achieved?
4. Determine the market for your business idea
You already have an idea, and you have already identified the products or services you will offer on the market. Now, you need to clearly, accurately, and unambiguously define the market that you will enter with your product or service.
As an entrepreneur, here are a few questions you will need to answer:
- In which market will you offer these goods and services (city, region, country, continent)?
- Who will be the customer of these products or services?
- What is the potential market size that you enter with your product?
- What are the characteristics of those customers who will consume your goods or services (gender, age, income, ethnicity, etc.)?
By following these steps, you will create your own business plan that will cover all the necessary issues. It allows you to plan everything in advance and understand possible difficulties that can appear on your way.