When you decide that you want to start a new business, the first step is to get your idea down on paper. Once you have developed the business concept, it is important to evaluate if the business idea is feasible, meaning that it is reasonably possible to bring your idea to fruition, and if the business is viable, meaning, will be able to sustain itself financially. Once you have made an initial assessment of these factors, you are ready to develop an action plan and then a business plan to put your ideas into motion.
Business Concept
When the first seeds of your business idea start forming in your head, start writing down your ideas right away. Let the ideas germinate for a few days, or weeks, and talk to anyone you know who has experience in the field in which you wish to venture, especially the field is new to you. The idea of your business will go through various incarnations as you sit and think about them. Those parts that will finally make it into what your business will look like will have a lot to do with what you figure out in researching the feasibility and viability of your idea.
If you have no experience in business then there are several places you can go to learn a little more about starting and maintaining your business. Look for government-run business development offices. Many of these offer counseling services with business analysts who can help you figure out what it is you need to get started, in terms of skills and resources. Another resource is your local chamber of commerce or business lending bank. Some bank web sites offer examples of business plans, which will eventually be helpful to you as a model.
Once you have decided what you think are realistic parameters of what your business is going to look like, take it through the steps of feasibility and viability, to test your vision of the business for its potential to succeed.
Feasibility
To test your business idea for feasibility, you are basically looking at whether or not it can be done. That is to say, what kinds of resources are you going to need to get it started and what will its organization look like. Your first step in testing feasibility is understanding what your target market is going to look like. In developing a profile of your target market, focus on the following characteristics: age, geographical location, socio-economic profile, lifestyle, and the size of that market in your territory. In order to understand the market that already exists, you need to look at several factors: current competition, current trends, and what is missing. You also need to analyze potential barriers to your entry into the market. Some examples of barriers could include special licensing, commercial zoning, and the like.
Once your have taken a look at the market, and at your target market, and decided how you are going to set yourself apart from the existing competition, you need to explore what kinds of resources will be involved in the business. This will include details such as the location of your business (including renovations if needed), employees, equipment and inventory, time, research and development, and support services (these can range from accounting to cleaning services for your facility).
