Research has shown that more than 90% of small businesses don’t succeed within the first five years of getting started. This includes both offline and online business, from flower shops in your local town to work at home entrepreneurs wanting to earn a living from the internet.
So, how do you make your new business ideas succeed?
1. Who is your ideal customer?
Firstly, who is your ideal customer? This is crucial to the success of your new business idea. If you don’t know who you are selling to, how can you sell to them? For example, are they male or female, how old are they, where do they live and what is their income? The more you know about your prospective customers, the easier it will be for you to target your marketing messages to them.
2. What do your customers want?
People will buy what they want before they buy what they need. They buy with emotion and rationalise their choice with logic. Selling a ‘want’ is easier than selling a ‘need’. How can you turn your new business idea into something that your customers will want?
3. Who are your competitors?
You have to know how and where your prospective customers are currently buying the type of product or service that you intend to offer with your new business idea. You can’t ignore or copy what your competitors are doing and you need establish a reason why people should buy from you, rather than from somebody else.
4. Can you reach your potential customers?
It is important that you know that you can reach your target audience with your marketing messages before you start with a new business idea. Some specific niche markets appear very lucrative at first but end up being so difficult to reach and communicate to that success is almost impossible.
5. Can you afford to get started?
You do have to consider the cost for starting a new business idea. Your new business is going to require investment. You are going to have to spend some money on things like a website, marketing, training and other resources to help you. You need to carefully budget your outgoings and match them with your incomings.
6. Is your new business idea scalable?
As your new business idea becomes a reality and starts to grow, will you need more resources to help you? Are you able to use automated software or outsourcing that can do some of the work for you? As much as you say you will, t is not physically possible to work 24 hours a day, 7 days a week. If you are the only person that can operate or manage your business, you have to adapt it so that you can scale it up using other resources.
7. Are you willing to work hard?
There is no such thing as a get rich quick business scheme. Starting a new business requires hard work and it does take time to build it up. You have to be passionate about your business and actually enjoy doing it. If you don’t, you may start to resent the hours and effort that you are putting in which may lead to you giving it all up.
8. Are you willing to learn?
If you were starting a new job working for somebody else, you would expect somebody to teach the job and show you what you needed to do. Your new business idea should not be any different as you will not know everything about all aspects of business. Take time to learn from those who have gone before you as you will be able to avoid mistakes and become profitable more quickly.