Posted By Amanda Collins on June 30, 2011
Often times, people get good ideas to start a business and just go forth full tilt. This can happen more frequently in a down economy, when jobs are scarce, especially if your business idea takes little to no start-up capital. But just creating a company doesn’t necessarily mean anyone will want to do business with you.
I saw this recently with a prospective client who had a decent idea but no traction or strategy to it. He just got an idea and decided to create a business around it. He then considered using social media and perhaps some SEO to promote it, but he didn’t have the idea fleshed out yet. When I asked him what the mission was and who he was targeting, he couldn’t answer. The fundamentals of business success were missing.
That’s not to say that a great idea can’t become a great business. It happens all the time. And you don’t have to wait years to cement your business and marketing plan before you can let it go. But you do need to have something in place. A building is rarely successfully completed without a plan, and you should look at your success in the same way.
Some ways to test if your business idea is viable:
- Be prepared to tell people in 15-30 seconds how you can help them. If you can’t sum it up that quickly, you probably aren’t quite sure what you do.
- Know your target market. Without a goal of whom you need to reach, how will you know if/when you’ve succeeded?
- How will you monetize it, both now and in the long term? Some really great ideas remain ethereal because there’s no way to make money with them.
For more on the nuts and bolts of business viability, you may want to look at these six points to consider.
Whether you are just considering starting something or you’ve been in business for years, it’s always a good idea to review your business in terms of the current market. Remember, it’s a living entity, so keep it fed with new energy.