Do I Have What It Takes?
Running your own business can mean long, unpredictable days, with little respite until you start to make a profit. Reaching that milestone can take years.
You’ll need to be:
Passionate: If not, you’ll find it hard to keep going when you hit a hurdle
Prepared to make sacrifices: You’ll have less money to spend and may have to give up hobbies and social activities, at least while the business is getting up and running. Make sure your family is prepared for changes, too
Good at managing risk: It may take time to develop a steady flow of revenue
Persistent: Things may not always go your way
Open to learning new skills: You may have to be company CEO, bookkeeper, sales team and cleaner until you hire specialist staff or advisors. You’re also going to be developing what your business is selling — and working out how to sell it
How Good Is My Business Idea?
This Action Plan will help you evaluate your idea so you can decide if you are ready to join the ranks of the self-employed!
Many people are able to come up with new ideas, but there’s a crucial difference between a good idea and a commercial idea. Often the most successful ideas are the simple ones, like identifying a gap in the market that can be filled with a new product/service or adapting and improving an existing business idea.
Taking this time to evaluate your idea before you leave your job, borrow money and put your
family life on the line is crucial.
Will I Solve a Problem or Fill a Need?
Is your idea for a business going to solve a problem — or tap into an unfilled need — for the public or other businesses?
If your answer is no, scrap it and start again.
If your answer is yes, think about the scale of this problem or need. If it’s minor, you going to struggle to make sales. You need to solve what’s giving people a major headache or provide something they can’t get elsewhere.
This is a key aspect of business planning. It’s a good idea to draw up a basic business plan — even just a one-pager — to help test whether you have a sound idea.
Will People Buy From Me?
Unique Selling Point
Unless you’re going to sell something, no one has thought of before, you’ll be competingagainst other businesses. Your products or services must stand out from the rest. Developing your unique selling point (USP)
It’s worth creating personas – fictionalized profiles of the people you most want to sell to – as you shape up your idea. Identifying key customers
You need realistic estimates of future income and costs to work out when you’ll be in profit. If the numbers show you won’t make profits for some time — even years — do you have funds to carry you through?
Tips on cash flow forecasting
How much will it cost to start up?
Once you’ve drawn up a basic plan and crunched some numbers, check out our guide to how
much money you’ll need to start a business.
Who Are My Rivals?
Some markets are more crowded and harder to break into than others. For example, if your area is flooded with cafes, what makes you think yours will be a success?
How many competitors will I have?
Are there any who will be in direct competition with me?
How difficult will it be for others to repeat what I’ve done?
Remember, you’ll need a unique selling point to make you stand out from the rest!