Answer These 3 Questions Before Jumping Into Entrepreneurship
Everyone has at least once in their life had a million-dollar idea. The tricky part is deciding if this idea actually has legs and could be a viable business.As a small-business owner for a decade, I’ve identified three crucial questions to ask yourself to help decide whether or not the concept is worth pursuing.These questions can help scope what I like to call “The Success Triangle,” an approach to help budding entrepreneurs decide whether to pull the trigger on that small business idea.
1. Concept: Is it a good idea? Let’s start with the obvious. Not every idea is a good one and just because your mom thinks it’s great doesn’t mean it is. Too many of us suffer from the “if we build it, they will come” mentality which can be equally tempting and dangerous. Just because you are obsessed with your dogs and think the world is clamoring for the introduction of canine teeth whitening pens doesn’t mean it will be a hit. It’s easy for something to seem like a great idea initially but several key questions should be asked to help determine whether the idea is truly solid:
2. Execution: How Well Can You Execute the Concept? While it’s great to have a solid business idea, it’s quite another thing to execute it well. Your idea about selling doggie teeth whitening might be a viable concept that the marketplace needs, but how well can you execute it? How do you manufacture the product? How well does it work? How easily is it applied? How do you market and deliver the product? These questions and others are critical issues to consider when contemplating how well your business idea scores on execution:
3. Profitability: Is Your Business Model Profitable? Unless you’re starting a nonprofit, most entrepreneurs are hoping to be profitable. (If you’re not managing your profit levels, you won’t be around very long most likely.) As part of this analysis, it’s important to evaluate your overall business model. For your dog whitening product, you should consider your pricing structure? Are you selling whitening pens individually or in bulk? Are you only selling pens or also providing a whitening service? Where will you sell: online, through vets and spas or at retailers? Consider these questions to help evaluate your business model and profit potential:
These questions aren’t a substitute for developing a thorough business plan, but they act as a simple guide to help the budding entrepreneur begin that critical vetting process.
Source : Entrepreneur.com
Author: Dana Brownlee
Having run a small business over the past decade, Dana Brownlee is an advocate for helping other small businesses succeed. She is president of Atlanta-based training company Professionalism Matters and is an acclaimed keynote speaker, corporate trainer and team development consultant.