To launch a successful business, you have to think about hundreds of business ideas. But sometimes while choosing the right business idea, plenty of ideas may confuse you. To select the right startup idea, you obviously have to do brainstorming and pay attention to every aspect of proposed business.
Let’s suppose, you come up with a great business idea and you are ready to turn your idea into reality. But hold on before you start a business, there are many factors that can greatly impact your future business growth. Here are the seven questions you must ask yourself before launching a startup business.
1). How much your idea is different from others?
It does not necessary whether you come up with a unique idea or copied that idea from existing businesses. The important thing is that whether your business idea will offer something new to people or not. If yes then it would be great. But if not, then you will need to create new Unique Selling Proposition (USPs) to attract new customers.
2). How you will turn your idea into a profitable business?
It is very important question because it is related to financial matters. Newbie entrepreneurs usually make financial mistakes while launching a new startup business. To overcome the financial mistakes and turn your idea into profitable business, you need to calculate your idea implementation costs.
For example: How much capital is required for your startup? How you will sell your commodities? What will be the selling and administrative costs? How you will increase your sales revenues and decrease costs to maximize your business profits?
3). How you will finance your idea?
Do you have enough funds to launch a successful business? If yes then go and fulfill your dream but if you have insufficient funds then you obviously need to dig out the alternative ways through which you can finance your business and keep your dream alive. Nowadays, crowdfunding sites are considered as the best way tofinance a startup business.
4). Do you know your customers and their buying behaviors?
Before you dive into the new business, you should know about your customers and their buying patterns. You need to do some market research, listen your customers and try to explore the following questions:
- What they exactly want?
- What type of commodities they are looking for?
- What are their buying behaviors?
- How they will find your business?
- Why they purchase from you?
- What marketing methods can better grab their attentions?
You should pay attention to aforementioned questions before you start a business. At the same time, you also need to ensure that whether market has sustainable and sufficient demand to support your startup or not?
5). Does your business and pricing model feasible?
After successfully identifying and analyzing the behaviors of customers, you will need to ensure that your business and pricing models are feasible. To develop a good pricing model, you should analyze your business competitors like how they charge their customers? How they generate additional revenues to maximize their profits?
It is not a good practice if you have best commodities to offer but people can’t afford it. If you want your customers to buy more business products and services, you will need to set a decent profit margin. Yes, you will have to develop apricing model.
6). Do you have the necessary skills and abilities to pull it off?
Every business needs some set of necessary skills, abilities, attitudes, experience, commitments and passion. You should choose such idea that needs those skills and abilities which you already have. If you lake these skills, there are more chances of business failure.
7). Will your business idea expandable in future?
In next coming years, will you be able to expand your business operations or introduce some new products and services in your existing business?
These are questions/points that you must ask yourself before starting a small business. Answering these questions can help you greatly in picking the right business idea and you can also easily figure out the problems if arise in future.
Now it’s your turn, let me know in comment box that what type of questions you asked yourself when you choose a business idea.
Image Credit: Pixabay
Adil Zaman is a business major and founder of Fincyte. He loves to write on small business and tech trends.