Ideas For New Businesses and Feasibility Analysis

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There are numerous business ideas but it is essential that these ideas can be turned into viable business opportunities. Your business ideas must have a need, a market and last but not the least the ability to provide you with good returns on your investments.

There are many questions that need to be answered before you float your business idea as a business, such as, is the idea practical, does the product have demand, can the product be marketed, do you have the required resources for launching the product at the right time, etc.

If you wish to succeed you have to consider and keep the market and the consumer in the mind. Study and analyze the market so as to find out about the market structure, market size, rate of growth in the market segment, the share of the market that you can acquire, break-even time, and lastly the barrier to your entering the market.

In order to assess the opportunities, you as an entrepreneur need to ask yourself the following questions before you reach the decision of turning your idea into a business.

What will be the need that your product will be fulfilling? In other words, what is the value of your product to the market?

Next ask yourself, as to who will be your target market or who will be buying your product. Once you have answered this, draw up a revenue model for the money that you will be making and how would you be making it.

Given the competition, you will need to differentiate yourself from the existing products in the market. It is essential to decide on your unique selling proposition. Next step is to study and recognize the barriers to your entry in the market.

Before you enter the market, be aware of the competition and carry out a complete competitive analysis of the competition and its quality. Appraise the market size in terms of cash or dollars. It is important to know this to avoid failure at a later stage.

Study the rate of growth in the market. It would do you no benefit if you enter the market at the wrong time.

Be realistic about the market share that you can gain.

Decide on the type of business or company it would be; lifestyle or high potential, sole Proprietorship or Partnership). After this, calculate the initial cost of starting and running the business. Calculate the cost required for initial start up of business.

Have a plan ready for raising the funds required for starting and running the business. Be clear as to how you wish to raise the funds. Once you have decided on the means of funds, decide on whether you wish to stay a Private firm or become a Public Company. If you ever wish to leave the business, be aware if you will be selling the business or list it as a Public Firm.

Lastly if you wish to raise funds with help of investors or as a loan, how will they get their returns or means of repaying the loan?

Once you have decided on all these aspects, it is time to turn your idea into a business opportunity.


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