You should be careful if you are an expert in a certain field and wanting to start a business. Your idea or expertise could be good but a successful business requires more than that.
It requires a combination of entrepreneurial skills and management skill. Your business idea should be commercially viable.
Another way to start a business is when you have an invention, wanting to manufacture something, buying a franchise or see what is available from your previous employment. Generate as many ideas as possible. Have a brainstorming session and examine all possibilities for creating a new product or service.
Keep the following things in mind when you assess the business opportunity:
* Location � physical address and then the community, cultural environment. How does this fit your profile? * Capability strength � the size of the business in terms of number of staff, sales volume. Do you want a small, work from home, business or what is the growth potential. Do you want a regional, national or international business? High tech or labour intensive. An online internet business can give you the option.
* Standard of living � do you aim to get quick rich with little capital growth or do you want capital growth instead of high disposable income? How long can you survive on low or no income?
* Development � what can you contribute from your education, skills and experience. What are the opportunities to grow and learn?
* Capital requirements � do you have the financial needs to start a capital intensive business or can you get away with a service business? The internet offers many opportunities to start a business with very little capital.
The most important thing to consider is the market potential of your business. Is there a market for your product or services?
And remember you�re not in the business you�re in. You�re in the business of marketing the business you�re in! No customers = no money.
Is your idea profitable? Important factors to consider are:
* Competitive advantage
* Disadvantages
* Threats
* Opportunities
A competitive business does not depend on luck. It depends on clear goals, detailed planning, following basic rules.
What is critical for the business to survive?
The answer could be market share, competitor�s retaliation, capital required, product longevity, finding skilled staff, satisfaction of customer needs, what competitive advantage do I have and other relevant factors. Establish an advantage and you can survive and flourish for a long time.
Following are ways in which you can gain advantages:
* Localization � develop products or services unique to your local market. Service to existing businesses. Manufacturing closer to raw materials or suppliers or the market. It is sometimes better to find a niche a mile deep and an inch wide rather than a product range a mile wide and an inch deep. An online internet business targeting a small niche has proven to be very profitable.
* Technology � use specific technology (could be patented) or use technology that is not susceptible to change overnight.
* Financial stability � build a business that can withstand currency changes if you are in the export or import market. Have a mix of activities that can withstand seasonal and economic cycles that could affect interest rates.
* Be the first in the market � to be first in the market could give you the advantage of brand establishment, distribution joint ventures, pricing flexibility and loyal customers.
* Pricing � find ways to deliver products and services at a lower price with the same benefits.
The business may be theoretically feasible but is it actually going to work? Is the investment in capital, material, people, systems and expertise worth the possible profits?
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Pete Smalberger is owner of Formula4BusinessOnline and writes on a variety of subjects. To learn more about starting an online business Pete recommends you visit:
http://www.Formula4BusinessOnline.com
