Is Your New Business Idea a Good One? Part 2
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Part One of this two part series revealed the four essential checks you must make in order to discover whether your business idea is a good one. Now I am going to go into each of these steps in more detail, so you can understand how they work.
The first step is to figure out whether your business will make you a profit, and this can be worked out quite easily in an Excel document. I’ll show you how to create one of these and experiment with the figures in the video itself.
Secondly you need to find out who your customers are. The more you know about them the better, so I’ll tell you about some of the points you need to consider here as well.
Thirdly you should ask yourself whether they will actually buy from you. Where are these people? How will you promote your products to them? And how can you get their attention when you are showing them what you have to offer?
Finally you need to find out whether you can double your business if and when you need or want to. Most people don’t do this, and it can lead to being stuck with a small business that cannot go anywhere. Remember, a one man band cannot always grow to be bigger than this.
The two things you need to focus on here are:
- How big is your profit margin?
- Are there enough customers to be able to expand your small business?
Once again you can use the same Excel spreadsheet to give you the answers you need. I’ll show you how to do this in the video. The good news is that figuring out all these answers now will automatically put you ahead of most other small businesses out there today.
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start-up startup new business idea
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Startup
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