I Have a Business Idea, Now What?
Congratulations on singling out a business idea! Now, as you delve into the journey of turning your concept into a running business, you'll encounter some daunting tasks. In this article, let's explore some of these tasks together.
No business idea? Read "10 Business Ideas to Try in 2024" here.Research Your Market
Market research is a crucial step that can either make or break your business. You have to understand your target market before you invest heavily in equipment and stock. No matter how great your product or service is, people won't buy it if they don't need or can't afford it.
During your market research, you have to identify the demographic you're targeting—whether it's school kids, middle-aged women, or car owners. You should understand their needs and preferences related to whatever you will be selling.
Don't forget to do a thorough competitor analysis to recognize their strengths and weaknesses. This does not only help you understand who your competitors are, it also reveals potential gaps in the market.
For instance, if your business idea involves selling website and graphic designs, your market research might involve...
Potential customers/clients:
- Small business owners
- Social media content creators
Client needs and wants:
- Unique and beautiful branding
- Captivating graphics
- To stand-out from the competition
- To be online
- Improved search engine visibility
Competitors:
- (Other web designers in or around your area)
- (Graphic designers in or around your area)
- (Others doing the same thing you)
Gaps:
- Give clients the option to get their graphics delivered to them
- Et cetera
Validate Your Business Idea
Another thing you might have to do before you start operating is to validate your business. Validating a business idea means to systematically assess and confirm its viability before fully committing resources. The goal is to ensure that there is a genuine demand for your product or service and that the business concept is likely to succeed. You have to gather evidence and feedback to support the viability of your business idea.
The information you collect during your market research could help you decide if your business idea is valid or not. Otherwise you need to consider prototype testing, customer feedback, and financial analysis.
Not all business ideas need thorough validation though. There are certain types of ventures that might require less extensive validation due to their nature.
For example, selling and delivering branded t-shirts from the comfort of your home might not require as much validation as launching a revolutionary app that makes money through advertising and investments.
Explore Funding Options
Assuming that you're satisfied with your market research and your business idea is valid, funding is another prerequisite you need to tick off your checklist before your business runs.
Running and maintaining that business will require money, especially when you are just starting off. Think about all the equipment, advertising and stock you need. Don't forget rent, water and electricity bills if you plan to rent. Also consider that you might run at a loss at first before your business makes enough profit to self-sustain.
I advise you to draw up a budget so that you know how much you need to start and maintain your business.
Things will be a lot easier if you have good money saved up already. Otherwise, you might want to:
- Get a loan from the bank
- Get help from friends and family
- Try government funding institutions
- Start saving up if you are employed
- Approach possible investors
Build a Strong Online Presence
With the world moving everything online these days, operating solely on the offline world would mean countless missed opportunities and customers.
You need to be thinking digital-first in 2024. Someone is probably searching for what you want to sell as you read this.
So, consider creating social media profiles and a website for your business. Work on your branding, quality content and advertising to stand out. Not only will this attract potential buyers, it will also build trust and credibility.
On the other hand, some businesses can do just fine without an online presence but I personally think they would do even better with it.
Stay Adaptable and Open-Minded
Adaptability is a skill you have to learn in today's everchanging consumer landscape and market dynamics.
You need to keep up with the trends and external factors that could affect your business either negatively or positively. Follow businesses in your niche to see how they stay up-to-date and keep up with the trends.
Sometimes, failing to adapt will render your business inoperational and/or bankrupt.
Remember when the COVID pandemic hit? While many businesses that operated mainly on the offline world failed because they couldn't adapt to the abrupt changes they faced, the businesses that operated mainly on the online world thrived. With the rise in virtual meetings and online shopping, other businesses were able to adapt quickly and capitalize on the world going online.
Right now the world is seeing an influx of AI models writing and designing things. While other businesses are voicing their concerns about AI ripping off real creatives, the rights infringement and job losses, other businesses are open-minded and they are adapting to this change even incorporating AI in their own products.
Stay adaptable and open-minded, learn new trends and techniques, improve your skillset, and your business will overcome almost anything the world throws at it.
Company Registration and Taxes
If your business is more than just a side hustle, consider formally registering your business. You should know that different types of company registrations have different liabilities and tax implications.
In South Africa, you can go to the CIPC website to learn more about this and possibly register. Banks can also help you through this as you open up a business bank account.
Open a Business Bank Account
I remember when I attended training for small businesses, the trainer made it a point that we separate our personal banking accounts from our businesses. As a start-up, you might overlook this but it will help you in the long run.
A business account may be necessary if you are going to apply for funding and business loans. Plus, you won't get your business expenses mixed up with your personal stuff.
However, business accounts can be expensive to open and maintain. Therefore, you might want to open another personal account (or just use the one you have) if your plan is not to make huge chunks of money and payments.
Finally, Compile A Business Plan
Last but not least, you need a business plan. It should help you understand your mission and vision for the business. It should outline all the goals and objectives you have and how to achieve them.
Your business plan can be a guide on how you structure, run and manage your business. Furthermore, it is what you will present to potential investors if you try to get them on board.
A business plan does not need to be super long. Investors will probably skim through the pages and focus on the parts they deem important to their interest.
Anyhoo, below are 11 topics you require to compile an effective business plan:
- Executive Summary
- The Business Idea
- The Marketing Plan
- Staff
- Organization and Management
- Buying for Your Business
- Greening Your Business
- Costing
- Financial Planning
- Required Start-up Capital
- Sources of Start-up Capital
Enclosing, these are the tasks you need to tick off your checklist once you try to put that business idea to action. Don't be overwhelmed though, progress at a comfortable pace. Your business is your brainchild, so take breaks and tackle tasks when you're ready.
