Entrepreneurship according to WIKIPEDIA is a process of starting a business or an organization, an entrepreneur is an individual who thinks of a business plan/model; arranges capital and other resources like employees etc and is solely responsible for the success or failure of the business idea. In layman’s language entrepreneurs are a bunch of extra-ordinary personals that make unusual decisions to succeed in their ideas. Ultimately their concepts reaps them huge unimagined profits and turns into a popular business plan or a model which is further followed by many for similar success. Yet it isn’t easy to make it big and being tagged as a “Successful Entrepreneur”. According to a data coming from a leading business online website; around 90% of the total startups in a year fail within the first few months and they struggle so much so that more than a half out of that number are forced to down their shutters.
Hence, it is rightly said that startups are ventures in which one should FAIL and FAIL FAST. However, failing often can lead to a difficult period so there is a requirement of finding answers to certain equerries which are best answered by the person starting or planning to start a business.
Given below are simplified pointers covering all the possible equerries to be replied before beginning a business.
Which path is the business industry headed to?
So you got a business model that you are excited about? Great!!! But what is the future of the same, where is the related industry about to go in the future? Some ideas which strike are ahead of time and most of them are done, tried and dusted. Hence, it is important to know the whereabouts of the sector in which your business plan belongs. Market Research is the only way one can know the information such as current trends in the industry, the demands and the competition that is already happening. It is also essential to note that most of the business plans aren’t a matter of completely re-inventing the wheel. It is just few improvements in the existing products or services. However, an extremely innovative idea which is capable of flipping the market thoughts requires a lot of re-educating the customers which in turn needs time and inflow of money and resources. Hence, planning it well is the best way to go about it.
Is the business model better suited for licensing or venturing?
This happens time and again people with a business plan share it with others in the open and then within a few days they find the same operating in the market minting profits. You should always remember a saying, “Knowledge and Ideas are nobody’s assets” hence it is important to decide and decide fast if the model is worth starting or it is a future potential, in the second case it is important to license it first.
The decision of if the business is worth venturing or licensing is a tough one and requires some real expertise. However, some business ideas may be good enough to start-off with and some will be better enough for licensing alone.
What is the PROOF OF CONCEPT for your business idea?
No matter how big and exciting your idea may sound, if it involves huge investment right on the first go; nobody’s interested-it is as simple as that. Your idea may be related to a new product or a service; you must be capable of driving the cost factor downside in order to lifting the competition and thus the demands among the clients.
This needs an unspecified time frame and the person with the business idea needs to work it out and find ways to have the idea at the minimal cost possible.
Prime instance for this is the discovery of computers; the first computer was the costliest but as the technology got cheaper different kinds of computers entered the market and their cost declined.
PROOF OF DEMAND….How much demand will your product or service receive?
It is obvious that you are super excited and confident about your business model. You are very sure that it is going to have a heavy demand within a period of its launch. That’s fine but what is the proof for all this? Any business is best done by testing the market demands before the launch. In case you being confident; you can discuss the idea with an industry expert or show the product to a retail guy and get their feedbacks. This will provide you a better picture of what others think of your idea. With crowdfunding and the use of Internet promoting a new business idea or a product has turned very easy today, you can also visit related websites and begin a Kickstarter campaign.
In case of a fast moving product you can start-up a sample sale activity wherein you can provide a limited stock to the customers at a lesser price tag. This is the most used technique of launching products by most business units both from the corporate and the small scale industry backgrounds.
Though there are many questions that need an answer while starting up a business; these 4 can be tagged as the MUST REPLY ones for almost every business idea.
Thanking You
Hence, it is rightly said that startups are ventures in which one should FAIL and FAIL FAST. However, failing often can lead to a difficult period so there is a requirement of finding answers to certain equerries which are best answered by the person starting or planning to start a business.
Given below are simplified pointers covering all the possible equerries to be replied before beginning a business.
Which path is the business industry headed to?
So you got a business model that you are excited about? Great!!! But what is the future of the same, where is the related industry about to go in the future? Some ideas which strike are ahead of time and most of them are done, tried and dusted. Hence, it is important to know the whereabouts of the sector in which your business plan belongs. Market Research is the only way one can know the information such as current trends in the industry, the demands and the competition that is already happening. It is also essential to note that most of the business plans aren’t a matter of completely re-inventing the wheel. It is just few improvements in the existing products or services. However, an extremely innovative idea which is capable of flipping the market thoughts requires a lot of re-educating the customers which in turn needs time and inflow of money and resources. Hence, planning it well is the best way to go about it.
Is the business model better suited for licensing or venturing?
This happens time and again people with a business plan share it with others in the open and then within a few days they find the same operating in the market minting profits. You should always remember a saying, “Knowledge and Ideas are nobody’s assets” hence it is important to decide and decide fast if the model is worth starting or it is a future potential, in the second case it is important to license it first.
The decision of if the business is worth venturing or licensing is a tough one and requires some real expertise. However, some business ideas may be good enough to start-off with and some will be better enough for licensing alone.
What is the PROOF OF CONCEPT for your business idea?
No matter how big and exciting your idea may sound, if it involves huge investment right on the first go; nobody’s interested-it is as simple as that. Your idea may be related to a new product or a service; you must be capable of driving the cost factor downside in order to lifting the competition and thus the demands among the clients.
This needs an unspecified time frame and the person with the business idea needs to work it out and find ways to have the idea at the minimal cost possible.
Prime instance for this is the discovery of computers; the first computer was the costliest but as the technology got cheaper different kinds of computers entered the market and their cost declined.
PROOF OF DEMAND….How much demand will your product or service receive?
It is obvious that you are super excited and confident about your business model. You are very sure that it is going to have a heavy demand within a period of its launch. That’s fine but what is the proof for all this? Any business is best done by testing the market demands before the launch. In case you being confident; you can discuss the idea with an industry expert or show the product to a retail guy and get their feedbacks. This will provide you a better picture of what others think of your idea. With crowdfunding and the use of Internet promoting a new business idea or a product has turned very easy today, you can also visit related websites and begin a Kickstarter campaign.
In case of a fast moving product you can start-up a sample sale activity wherein you can provide a limited stock to the customers at a lesser price tag. This is the most used technique of launching products by most business units both from the corporate and the small scale industry backgrounds.
Though there are many questions that need an answer while starting up a business; these 4 can be tagged as the MUST REPLY ones for almost every business idea.
Thanking You
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