So you’ve got an idea for a new business, You have some money saved, you know of a great location, and you have some people ready and willing to work with you. It can be easy to get caught up in the excitement of making your idea a reality, but before you get ahead of yourself, you need to find out: is your business idea viable?
There are several factors to consider that will help you decide if the idea you have for a business will make it or if it will get lost in the shuffle among potential competitors.
First, is your idea unique? It doesn’t have to be a completely new concept, but are there enough unique aspects to make your business different from others like it? Next, do you know what it will cost to start your business? Every company has some significant expenses at the beginning to get all the supplies, marketing materials, and products needed to begin functioning as a business. It will take time to get that money back, so make sure you have a plan to cover these costs right away. Third, are you selling to anyone and everyone or do you have a niche market you need to target? Do you know how you will reach these people? It may be best to start out broad and then narrow your focus as you find out who begins buying your products most.
You also have to think about the state of the economy and the time of year you will be opening. For example, is your industry currently growing or are the sales in a decline? Opening a mini golf course in January doesn’t make much sense; however, opening in late spring will ensure people will come right away. Finally, you want to make sure your cash flow doesn’t run out at the moment orders come flooding in. If that happens, you’re in trouble. With the right financial planning, you can prepare for covering costs and fulfilling customer orders at the right time so you don’t miss a beat. Go over each critical part of your business plan before opening your doors. Make it happen!
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