May 29, 2019 | Peyton Sawyer
Are you an idea person? Do you have the desire of becoming an entrepreneur, so that you can live out the dream of becoming your own boss? Many individuals, like you, have the want and need to be more in life. Coming up with the right idea at the right time can pay off big. Let's face it, most of us are looking for that big payday.
You may get more ideas than you can process, while relaxing in bed, showering or even when you are struggling to get something done. Solving an issue or finding a better way to accomplish a task, may not only benefit you but many others. An idea like this may be just what you need to get your name on the map. It can sometimes be difficult to determine a viable idea, from one that is not. How can you tell a good idea from a bad one?
First, you need to recognize that an idea is just an idea. Text Converting that idea into a reality is not an easy task. There will always be obstacles that one will need to overcome. You need to decide if you have the ability to execute the idea. Putting the idea into motion or into action is much different than the thought of an idea playing out in your head. Successfully executing the idea you have settled on may require a certain skill set, extensive knowledge in a particular area, a talent, or time and money that you may not be able to access.
Having the drive and courage to step outside your comfort zone and dive into a project is an amazing quality that can give you a great return but biting off more than you can chew can often result in failure. It is important to know your limits, whether it is the knowledge or experience you have or the business funding you are able to obtain to see the idea through.
It may be in your best interest to put the big dreams on hold until you have accomplished the smaller ones. At least until you have the know-how and Text business funding to get started. As the saying goes, slow and steady wins the race. It is better to take the time to hone your craft or idea.
Turning an idea into a functional, profitable and sustainable business is a process.
Does Your Idea Fill a Need or Solve a Problem?
In order to be viable, your idea should fill a customer need or solve a problem that one is facing. Once you have determined what type of idea you will be building on, you will have a better understanding of what direction you should continue on to . Be objective. Make it a point to take yourself and your personal attachment of to the idea out of the process. Ask yourself, if you think someone would pay money for the product or service you will be offering? It is important to be honest with yourself.
Do You Know Your Market?
Having a clear picture of your target audience is essential. Will your product or service help to solve a problem or fill a need in your market? If so, where do they live, how much money do they have to spend, what education level have they completed, are they single or family oriented? These questions should be addressed before you get started. Knowing who you will be serving is an important part of marketing your product and services. You may want to hold a focus group to get the answers you need.
Can You Create a Prototype?
Don't dive right in! It may make more sense to create a prototype before investing your money. Creating a prototype can be a sample or a presentation of the product or service you intend to offer. That means taking the time to turn your idea into something your target audience can hold or experience for feedback. This is a great way to see if your idea is something that will succeed or fail in your market or if you need to tweak the idea for better results. Doing this can help you save thousands of dollars.
Poor Prototype Results
If supplying a prototype does not go well, you may want to heed the warning and cut your losses. It may be time to go back to the drawing board. Not every idea will succeed. It is your job to figure that out before you take a big loss.
Is Your Target Audience Big Enough?
It is important to offer your product or service to a large enough audience. You want to have room for profit and growth. Will providing your services or product be worthwhile in this market? It doesn't need to be in high demand around the world to be a success, but you do need a strong customer base to make it worth the time and money you have dedicated. Will you be able to sustain a profit long-term?
Where Will You Get Funding?
Securing the capital needed will depend on the nature of your business, how much you need to get started, and whether or not you have a savings account, or the credit history needed to be approved for funding. The answers to these questions will dictate how you go about getting the start-up funding for your business idea.
Business Funding Methods
For those of you that do not have access to a savings, you will need to seek funding from an investor or a traditional or non-traditional method. The difference between a traditional method and non-traditional method is the credit and the ability to produce collateral. Banking institutions or traditional funding sources will require a strong credit history, available collateral, and an industry that does not have a lot of risk for investment for approval. A non-traditional business funding method or the option of online business funding is usually much easier to obtain. While the interest rate may be higher, the approval odds are much better. Credit is often not an issue.
Take the time to consider your funding options. It is important to only commit to an amount that you afford to make repayment on.
Good Luck in all of your business endeavors!