You have a great business idea, and even got started on a business plan. But now you wonder: is my upstart business model really viable? Here is an eight-point test to tell you if you should forge ahead with your business idea.
Before you worry about upstart financing, marketing or business location, you should begin with an idea—not just any idea, but one that’s unique. What makes your business stand out from the rest?
Uniqueness doesn’t necessarily mean you have to invent something (though that’s never bad—just look at Snuggie’s success), it just means that you have to set yourself apart from the competition. If you’re starting a catering company, say, what will make your catering service different from the rest? These are tough questions, but important ones. The most successful businesses have a strong, unique concept, and a clear identity. Take the time to define yours.
2. Upstart Funds
What will your start-up cost be? Every business has some expenses at the start, whether you’re paying for equipment, rent or just basic marketing materials. Make a realistic estimation; you’ll need these figures to obtain a loan or simply to budget if you’re paying these expenses out of pocket.
Who’s your customer? Knowing who will be buying your product or service is vital to your business success—how else will you find your customers if you don’t know who they are? Are you catering to busy professionals, stay-at-home moms, college students, retirees? Define your customer, even if you have to be broad at first. If you’ll be renting a space, make sure the local demographic fits this profile; the real estate agent will be able to provide you with that data. Read more