Starting A Business: How To Test If It’s ViableOlufisayo Ogundipe
Starting a business can be pretty exciting, yet at the same time, can be frustrating and challenging. The worst thing that can ever happen to anyone in business is to have to close down the business because it’s not making enough profit to keep it open.
Starting a business, you must first consider if the business is viable. A viable business is a business that is able to live, develop and grow on its own. If you start a business that isn’t viable, no matter how hard you work or how much money you put into it, it will never bring considerable amount of money, infact, it will close down before it starts.
There are many ways to test if a business will be viable. So before you start, ask yourself,
1. Is There A Gap In The Market?
This means checking for an opportunity to produce something that is not yet available, but that people would like to buy. You’ll also need to check why the gap has not yet been filled. There might be many important reasons which you haven’t spotted but may have detered many people from starting.
2. Assess The Market
You must first define your ideal customer and then do a market analysis. Defining your ideal customer, you must consider their age, their gender, where they live, what they spend time on and everything that makes them up. This is known as demographics.
3. Check If There’s a Market For Your Business
Is there a market for the business? The biggest mistake people make is going into business without considering first, if there’s a market for it. They just launch on assumptions. You need to check if people will be willing to buy from you. Does your product have customers? Every potential new business needs to work out why prospective customers will buy it’s products or services. To know this, you must ask these questions
* Does it solve a problem? * will people pay for it?
Finally, you need to understand that an idea is just an idea until you have a paying customer attached to it.