Business Checkup Tips: Let’s be fair, business ideas are easy to come by.
There are very few people that haven’t, at some point in their lives, said:
“I should start a business doing that”.
Technology and the internet have only served to increase potential start-up,
Opportunities for anyone with a computer and an internet connection.
How many times have you thought of a great idea for an app?
The reality, though, is that it’s incredibly difficult.
Especially in developed countries such as the UK, to come up with a winning idea.
The idea that will bring business success.
With that in mind, how can you sense check your idea before you waste too much time on it.
Only to find out that it was never going to work?
How can you work out which of your ideas is the one that will work.
So you can forget about the rest and get on with it?
Here’s my five-step process to sense check your business ideas.
Read on: How to Adopt Virtual Teaching Practices in Nigeria
See also: 48 Top Business For Nigerian Young Stars
Business Checkup Tips:
1. How much does your product or service cost to make?
You need to do some research into exactly what it would take to make one unit of your product/service.
This means working out how you’ll make it and therefore what you would need to purchase in order to do so.
How it will be put together and how you’ll get it to your customers.
Be realistic with your estimates.
Don’t be tempted to take lower unit prices achieved by buying in volume.
You’re a start-up – chances are you won’t sell much at first.
So you’ll be stuck with your money tied up in stock.
other post: 20 Top Christmas Business Opportunities in Nigeria
Business Checkup Tips:
2. How much could it sell for?
Sounds obvious, but it’s really important. What are similar products/services selling for?
What would your target market be prepared to pay for what you’re selling?
Business Checkup Tips:
3. What else will you have to pay for to make the business work?
Will you need to purchase a machine in order to manufacture all or part of your product?
Do you need a website to sell your service?
Will you need storage space?
A marketing budget? At this stage, you don’t need to be hugely accurate with your costs.
But it is important to get a rough sense of what is required.
As it will help you to establish whether the idea is feasible or not.
Read also: 13 Tips to Start Balloon Business in Nigeria
Business Checkup Tips:
4. How much money do you need to start-up?
Of all the costs you’ve identified, which do you need to cover upfront.
And which can be paid for from revenue slightly later on?
Business Checkup Tips:
5. Will people buy it?
Now what? Well, it’s crunch time. Take the rough sales price (question 2)
And subtract the unit cost (question 1).
Hopefully this number is positive?!
My first attempt at book publishing.
Almost a decade ago, ended with quite a shock when I realized that Amazon ask for a 60% discount off the RRP.
I’d been able to produce one book for £3.85; just to break even.
I’d have to set the RRP to at least £9.65!!!
I eventually settled on £11.99 and you can guess what happened.
I sold virtually nothing (and couldn’t discount without losing money).
Business Checkup Tips:
Fortunately, I had a much better model when I launched Echo Books last year!
Assuming you’re still in positive territory (if you’re not, forget it!)
You then need to look at how many units of product you would need to sell to break even.
So take your fixed costs (question 3) and divide by the number you just calculated. Is this number realistic?
Be honest with yourself, if it’s not, it will only cause you problems further down the line.
Business Checkup Tips:
One final check – your start-up costs (question 4).
Can you afford this? Where will you get the money from?
Of course, there are many other factors to consider when starting a business.
Those we have looked at here are designed to give you an initial insight into whether an idea.
Could feasibly turn into a business, so that you can choose which of your ideas to pursue.
Once you’ve settled on your idea, its then down to you to make it work.
Entrepreneurship is about acting, not spending months planning and getting every detail right.
If you do that, you’ll never start.
You have to do something, anything, to get yourself going.
And then move quickly to continuously improve what you’re doing and push it closer to your original ambition.
Read more…
Related Articles
- 32 Tips to Key into Chase Business Line of Credit
- How to Become Food Vendors(15tips)
- Top16 EMERGING BUSINESS TRENDS
- Top 30 Hospitality And Tourism Business
- 33 Tips Unleashing the Power of the Internet: Creative Money-Making Ideas
- 15 Tips to Start Online Furniture Training Business
- 18 Strategies to Distribute Cleaning Business Cards
- 23 Fiverr Social Media Videos Building Tips
- 24 Tips to Become Big brother Naija Excellent Student
- How to Open a Profitable Dance Studios and make money
- How to Get Eidl Loan With Western Union
- 38 Strategies on Getting a Job as a Real Estate Attorney
- 20 Easy Steps to Start a Small Business With Bad Credit
- 28 Top Business Intelligence Platform for Business
- 10 Business Ideas for Students in College
- 19 Ways on How to Sale AliExpress Products
- 22 Tips to Open Wholesales Kitchen/Bath Accessories Shop
- 14 Tips to Open Freight Bill Business
- 10 Tips to Own Freehold Office
- 18 Tips to Become Health Service Vendor
- 38 Basic Tips Exploring Careers with Delta Airlines
- How to Start Apple Fruit Selling Busines
- 35 Tips to Lunch Soya Products Business
- 23 Tips to Gain Flour Mills FMCG jobs
- 22 Best Power of School Branding: Shaping Futures, Creating Identities
- 37 Tips to Prepare Homemade Pepper Lunch
- 23 Tips to Maintain Your Long Distance Relationship
- How to Make Gigi Hadid Pasta Sauce
- Top 17 Female Naturally Beautiful Tips
- 7 Benefits of Managing Online Reputation for Businesses
- 15 Tips Supporting Local Butcher Shops: A Cut Above the Rest
- 18 Tips to Adopt Wendys Breakfast Menus for Healthy Eating
- How To Start Self-Storage Business
- 16 Best Innovative Approach to Employee Productivity and Well-being
- The Challenge: Double Agents Spoilers and What You Need to Know
- 14 Ways to fine Aircraft Maintenance Jobs
- 18 Tips to Become Dairy Farming Consultant
- 23 Top Tips to Get the Best Music Video Production
- Sports and Betting Markets Available at Bet9ja
- 10 Tips on How to Practice 24-Hour Air Conditioning Repair
- 20 Tips Unveiling the Allure: The Magic of White Eyeliner Under the Eye
- 27 Tips to start Dancing Group Business
- 30 Tips on What is a Certified Production Technician
- 8 Best Green Guide to Money Plant Care: Tips for Thriving Foliage
- 18 Tips to Get Prepaid for Under 18 Tournament
- 14 Ways to Edit the TikTok Video
- How to Calculate Breweries Atlanta Turnover Rate
- 20 Tips to Make Perfect Christmas Decoration
- 19 How to Start Organic Farming Practices
- Best Alternatives to Republic Services Trash Collection