Starting a business isn’t easy. You need to think about it long and hard before you even think about taking your next step. That is why it’s recommended that you ask the following questions first before you take the plunge.
1) Am I Viable As An Entrepreneur?
The first thing to do to find out if a business idea is viable is to turn the question around and ask yourself, “Am I viable for the idea? This is the key question, and yet one that many entrepreneurs do not ask themselves. Many experts in business creation agree with this opinion and give the business idea a relative value. The profile of the entrepreneur and the team is one of the factors that most influence the success of a project. It is advisable to do the self-examination with a high degree of honesty.
For example, if I intend to launch a project based on Public and Commercial Relations skills, but I have difficulties communicating and alarming shyness, I must realize that this is not the most suitable project for my profile. And although it seems obvious, very few do. Do I have the necessary skills and abilities to carry out my project? Do I want to develop my professional career as an entrepreneur? If the answers are yes, go to the next question.
2) Am I Willing To Sleep Very Little For The Next Few Years?
In the previous analysis, you have verified that you have the ability to negotiate, sell, communicate, to make decisions. That you are a creative person and that you do not wrinkle in the face of difficulties. That you have leadership capacity, to lead teams, to delegate … The time has come to know if you are the first convinced of your project. “Experience tells me that without much personal energy, business ideas do not succeed.
The entrepreneur must analyze to what extent he is willing to fight, to take the risk involved in taking a business forward” says Alfons Cornella, president of Infonomía. And he continues: “If you are looking for security and personal comfort, you better not get involved, because business initiatives involve not sleeping enough nights.” So are you willing to pass penalties? To endure that many do not understand you? If the answer is that you prefer to be calm after five in the afternoon, perhaps entrepreneurship is not your best alternative. Otherwise, keep reading.
3) Do I Have Experience In The Sector?
It is not essential, but it helps. Most ideas arise in the environment of the entrepreneur. If you are from Madrid, it is difficult to come up with an idea to develop on the coast. The best way to add value to the market is to start in a well-known sector, especially if the project is small.
4) What Does My Business Idea Consist Of?
For starting a business, it is essential to have a clear business idea and to know the matter. You have to accurately describe the service you are going to offer. Analyze what and for whom it is intended and why it would be valued by potential customers.
All the experts in business creation coincide in pointing out the importance of this analysis of the business idea: What products or services am I going to offer to the market? What will my business model be? What innovation, from a technological or business point of view, does my company provide? These are some of the questions that the entrepreneur must answer. Let’s see what tool you can use to carry out this analysis.
5) What Are Your Weaknesses, Threats, Strengths And Opportunities?
The initials of these four words form the acronym SWOT, an essential resource to analyze the viability of a business idea. It consists of transferring to paper the assessment of the company’s strengths and weaknesses to see what the most appropriate strategy to start the business is.
The SWOT allows you to position yourself in front of the market and check if there is room for what I am going to offer or if, on the contrary, it is better to rethink the situation and change the plans. If by doing so we realize that there is no market, or that it will be very difficult for us to find our site because technical, financial or human resources are needed that we do not have, it is better to back off. If, finally, the strengths and opportunities of your idea outweigh the drawbacks, continue with the analysis.
6) Does My Product Or Service Cover A Market Need Or Am I Looking To Create It?
It is time to study the public we are going to address. Another cornerstone of feasibility analysis. You have to start by studying if there is a market for what I am going to offer. If so, it will be necessary to check if I can occupy a gap in that market and, if not, if I can create a new need. Of course, in the latter case, it is advisable not to lose the north: It is not easy to awaken a new interest in consumers on a planetary scale, much less for a small company. It is easier to do what other competitors are doing wrong or to target an underserved niche than to invent a product or launch a new service to the market. In fact, most of the companies we have consulted have their origin in a market need.
7) What Is The Potential Market I Am Targeting?
To find out if a product or service is salable or affordable by the public, you have to go to an indispensable research tool: market analysis. It is about finding out if there are customers willing to pay for what you are going to offer. And, in that case, who are they, where do they live, what do they do and why would they buy your product or service. It is also necessary to analyze how the sector where I will compete is and how it will evolve in the coming years. To obtain these data, information can be consulted on the Internet, carry out fieldwork and observation, make small surveys and interview potential clients.
In addition, experts recommend starting the analysis with a real client, with names and surnames. Many technology consultancies for SMEs that are successful today were launched on the market from a single client. This is how they tested and improved the idea and the business model and then began to gain market share thanks to word of mouth.