It’s most important to see your business concept through the eyes of your customers. If you have a dream of starting a dance studio business, your survival and success will be built on teaching as many couples as possible to dance. Additional stretching sessions and selling dance costumes is additional activity that might work or not.
Assess your business idea
Developing and refining ideas for a successful business is exciting. However, there is much serious work to do. You need to examine your idea and realize that ideas for new products or businesses have to meet a specific set of straightforward but important criteria.
1. Is your product or service better than alternatives on the market?
When deciding whether or not an idea is important and viable enough to become the foundation of a good business, you must determine if that idea offers advantages to customers. In other words, is the product better than the customers’ alternatives? Does it have the ring of originality? These kinds of ideas could also lead to greater success.
2. Simplicity is a key to success
Simple ideas are the most compelling and the easiest to sell. When you are starting out, it is wise to keep your ideas focused and manageable. You do not want to become overextended. It is far better to start out slowly on a firm foundation with one great idea and build on from there.
The process of simplifying an idea or several ideas is similar to editing written text. Gather your thoughts, and write down every possible element involved in developing your idea: design, color, packaging, manufacturing, employee training, sales and distribution, and so on. Ask for input from experts and friends.
Next, begin the editing process, crossing out elements that complicate the picture or stretch your resources. Then determine how to deliver the most value to your customers with the resources you have. You will need a simple, clear message about the value you are offering to them, so resist clouding the message with too many promises and too much information.
Be patient and limit your offerings at the start. First create that essential business concept, then build on it one step at a time.
3. Is your business concept the right one for your region?
The right location can guarantee the success of a business.
There are many other geographic considerations to be aware of when starting a new venture. Are the suppliers for your materials nearby? Are there affordable warehouse rentals for your merchandise? What are the shipping considerations? Parking and traffic patterns are critical factors to a retail operation’s success.
Finally, you must consider factors such as weather and humidity. You should be aware of seasonal visitor patterns. If your business offers services to tourists, what would you do during the months when the tourists inflow is weak?
4. Can you afford your business concept?
Many successful businesses start out small with very little capital.
There are other business ventures, however, that demand significant investment before the first customers appear. Retail stores require leased space, utility payments, alarm services, liability insurance, and, of course, inventory and sales personnel. And certain service businesses, such as dry cleaners, call for expensive equipment. You must be realistic about your resources and make a careful business study. Always try to as be frugal as possible;be practical and clever.
