Turning an Idea to a Small Business
|Date Added: May 12, 2010 06:41:30 AM|
|Author: Small Business Arena|
Working a nine to five, five days a week job can be tiring sometimes. Especially if you feel that you are stuck in a dead end job. It is during these times of reflection that you start to wish you have your own business and you are your own boss. But how does one go about starting a business? Everything actually starts from a small idea and following through with that idea. The following is the first process in molding a creation of small business:
1- Write an initial informal business plan. This informal business plan will consist of jotting down questions that you have for yourself and answering them afterwards. If you do not know what kind of business you want to venture into, this exercise may help you discover your genre.
2- You must ask yourself what kind of things are you passionate about. What activities you enjoy most. Almost all business owners love what they do that is why they are successful in their chosen field.
3- Everyone is talented in their own way. Think about your unique set of abilities and how you can apply them in a small business setting. Add your experiences and other knowledge into it as well and see what you would come up with. Whether what you are thinking is plausible or not.
4- When your ideas are starting to form, also write down any additional trainings or education that you might need in relation to the preparation for them.
5- At this point, you have the information that you need to think about what kind of services or products you can offer. The market industry that you will venture into will also start to form in your informal business plan. Weigh out the pros and cons of providing a new service or product against adapting an existing one and making a better version. You have to keep in mind what qualities and experience you have that qualifies you to offer such product and services.
6- When you have consider the products and services for your small business, the next question to ask is, is there a need or demand for them. Most of the small business that does not succeed is that there really is no demand for the product and therefore no market for it. You have to make sure that the products or services that you consider is what consumers need or would want to buy.
7- Knowing your competition is imperative in the business world. You need to know the kind of market you are venturing into and the share of the market that could potentially be yours. You need to research the turnover of new businesses in that market as well.
8- By knowing your competition, you can then formulate ways to make your products and services better. You have the advantage of knowing what your competitors lacks, giving you the opportunity to come up with a better quality service or product.
Once you have written down the above, your ideas for a small business will start to form. By now you will have a better understanding of the products or services that you want to offer and the target market you want to venture into. Getting to the specifics of the plan is your next step:
This is the time that after you have finished with your informal business plans to make a formal first draft and put everything together. Make your business plan as objective as possible with justification for everything so that potential investors and lenders will have no trouble in understanding it.
The first business draft you do is not the final business plan. Go over it again and review and make necessary changes as you see fit. This is just a starting point. As new information comes along, add them and revise your business plan to make a better and stronger one. Make sure to cover all areas. It will be a very valuable tool once you start your business.