Let's say you have a great idea and you are thinking of business start up. What are some of the things you are going to need to do to make your idea reality? The first thing is to think through your business idea objectively and quantitatively.Thinking objectively means to think in relation to facts, and not let your personal bias get in the way. This is important when you first come up with an idea because excitement can distort thoughts, making a bad idea seem good. Before going any further, the intention here is not to discourage creative thinking, or dispel one from chasing their dreams. Instead, we want to ensure that the ideas that have the greatest chance for success are acted upon, and poorer ideas are not pursued, thus saving personal time and energy.I find that good thinking can be helped along by following a process, and consulting others. The idea of business start up is something that thousands of others have pursued; countless books and article have been written on the topic. There are a list of common questions which can be carefully thought of, and these will result in a more thoughtful business decision. Here are some of them:What makes the idea unique in the marketplace?
Who are the existing competitors in the marketplace?
What is the target market for this product or service? If you, yourself, were in the market for the item, what would compel you to purchase it?
What if a competitor were to come along with the same idea, or your competitors were to copy your idea.What would your business do in that case?
What is your competitive advantage? Is it your product? Is it your marketing? Is it your contacts? Pricing? How can you maintain your advantage?
How large is your target market? Is this a currently existing market, or are you creating a new market. (for example, the iPhone targeted the Smartphone market, whereas the iPad created the tablet computer market).These are some questions that you should be able to answer. Aside from this, it is a good idea to consult a colleague or respected friend for their opinion. Sometimes, their lack of excitement may be a humbling experience. But their response should also ground you, and you should aim to understand their honest opinion.Another option is to ask your target customer directly. Keep in mind that what people say, and what they do, is different. This is the bane of customer focus groups around the world.What you are doing in all of these steps is preparing for a business plan. The business plan is not only a document which talks about business strategy, but also contains numbers pertaining to financial projections, pricing, costs, market size, and so on. Numbers also ground us in reality.There is a lot of advice regarding how to create a business plan. One thing to remember is that the business plan is not a magical document. Having a business plan does not guarantee success; conversely not having a business plan does not mean you are not qualified for business. In a similar vein, starting a business is a personal decision. People may say, "You are not qualified," or "You don't have what it takes," or so on. There is no barrier to entry for starting a business. However, the reason why people emphasize characteristics like leadership, team work, etc..., and the reason why people make a big deal about business plans is that considering these qualifications is a sign of deliberate thought about what it takes to make it in business. Successful businesspeople are respected because success is elusive. No one has the single magic formula here. That is why tens of thousands of books have been written about business.If you have created a well thought out business plan, or have deeply thought about your business, the rest of the process is more methodical. You need to have a formal business structure, and get appropriate permits and licenses from your locality. This is a matter of paperwork, albeit a lot of paperwork. The paperwork is necessary, and fortunately once it is out of the way, you only have to deal with various issues once in a year.Business start up does require a few more steps. This includes choosing a name, finding a place to work, getting a phone number, and so on. These can be done on an as-needed basis. Your most important job will be strategy and marketing. Focus on these and take the rest as it comes.
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