27/07/2021
BUSINESS IDEA EVALUATION AND CHOICE VIABILITY.
Earlier on, we had discussed on Business Idea and sc****ly looked at the aforementioned principle. We want to take a more closer look on the need for evaluation and insight on probable viability of our choice businesses, especially, as a startup.
Business Idea evaluation and hope of viability, occupies a larger part of your intended business plan documentation - meaning, you can't just sit in your comfort zone without proper research to draft a business plan cm guide.
Undertaking that step necessitates you being well armed with the necessary arsenal to undertake such journey to avert haphazard documentation that could be dangerous in the long run.
Your business plan is your roadmap to business growth and development.
Undertaking a proper evaluation of business idea and studying your choice business viability will in turn, guide your steps in trying to put up a good business plan for your intended business venture.
Your choice business idea as a startup, might be a home run business or one which necessitates an on a spot business location away from home. Nonetheless, what matters most is the evaluation of that business idea and how viable the choice you're sticking to will be, now and in the long run.
These necessary arsenals should be your guide in choice determinant.
•[Needs Identification in the Face of Economic Mood.]
Before kick-starting or investing your funds in a particular business venture, it's always vital to ask yourself certain key questions. Which includes:
✓ What exactly is the mission of this intended business?
✓ What Satisfaction is my intended business bringing to the table?
This process is just like seeking to write a project in a citadel of higher learning, project topics abound, here you're making a choice and in doing same, you have to convince yourself and your supervisor of a hole you saw in maybe previous writings that you want to fill.
Now the question is:
✓ What Market Hole is your intended business idea coming to fill?
You have to outline:
° Its need in the market place.
°How many percentage of the population within your occupied environment yearns or are yearning for this product you want to bring to the table?
Herein, is your foundational step towards market analysis before a business idea cm choice is made - Survey.
Remember, we had discussed a bit on this, and we outlined that just relying on internet cm social media survey or research isn't good enough to build upon while making a choice on business idea. This is because, those who'll proffer those ideas aren't or might not be residents within your environment so as to determine what your vicinity yearns for. Physical Survey was pinpointed as a very vital and more reliable avenue of research or survey needed to be undertaken before settling for a choice business idea.
• [Market Analysis]
Herein, is the step that helps you build upon the needs your environment yearns for.
After undertaking a physical Survey of your demography and subsequently identifying her daily or major needs that your now choice business will want to satisfy, the results should give answers to these questions:
√How large is your intended market?
√How fast is the intended market growing?
√Does the market available accommodate both s*x?
√Does it have religious variations?
Knowing your customer - who'll be buying your products and services is vital to your business growth and development.
Note: If your business product and service delivery only appeals to a small market niche, your possibility of gaining a quantum marker share to sustain business profitability is hanging on a balance, especially, as a startup. Moreso, even if market share is to be earned, it'll take a more robust advertisement and personal relationships to build same.
• [Market Share]
Your detailed Market Analysis will serve as a guide towards a clearer picture of your competitors already maximized market share, what's left over for you and other probable entrants into same business venture.
This will help build your thoughts on necessary strategies to adopt while seeking to break even and subsequently gain more market appeal to your favour. Nonetheless, it's worthy of note that, an over saturated market within a demography, leaves a business startup idea with a little customer base that might take quite a long time with only consistency, dedication, hardwork and extraordinary strategy, not forgetting grace, needed to break even.
Imagine operating a small kiosk with retail sales within a region where same goods are sold in wholesales in a warehouse.
Isn't that suicidal?
or
Operating same kiosk with sales of satchet beverages in minimal rolls within the same route where Ebeano Supermarket, De Choice Mall and Shop Rites all operates...do the statistics of expected business profitability yourself.
or
Seeking to set up a mini Automobile assembling firm in Nnewi of all places. An already conquered demography by Innoson.
How will you easily fit in, operating in that territory?
• [Upstart Funds]
This represents a core prerequisite in business setup. It is well believed that expenses are higher at the starting stage of any business venture, both the projected capital cost and whatever.
It's vital that a realistic estimation is put in place, for this will guide in overall budgeting, current and projected financing needs, marketing analysis and strategy, fundraising process and expenditure in the long run ( a major priority why a BUSINESS PLAN remains vital for your business).
Again, lack or inadequate funds to meet up high demands of a particular business venture you delved into and probably seeks to carve a niche for yourself remains a pointer towards cash flow deficiency and a whole lot of business startups are faced with this deficiency on daily basis.
Proper Financial Planning will help ameliorate this major challenge ( BUSINESS PLAN also remains a necessity here).
Imagine setting up a pure/table water production factory within a vicinity.
The demand for wholesale and retail supply of this need suddenly outweighs your current market supply. It becomes an issue that lingers for a long time, let's say a month or two, in just less than six(6) months or one(1) year of coming into business. Naturally it'll become a turnoff for your customers that they'll begin to seek for supply else where.
With this, your already maximized market share begins to dwindle.
• [Being Distinctive]
While settling for a choice business idea, minimal identical business will or might likely exist within that demography. Obviously your market analysis would have told you that the supply within the zone isn't commiserating with the high demand at hand, so you opt to join the race in contributing your own quota towards needs supply and therefore, gaining market share.
Nevertheless, it has been established that you're going to be faced with competitions from already existing or other startups with identical business venture.
However, your Distinctive attributes towards business transactions will most likely unravel your uniqueness amongst your competitors.
In seeking to single out yourself in the crowd of competition, it's most vital you arm yourself with your weapon of business plan as a written document. This of which, your co competitors might have possessed theirs seeking to stay ahead of everyother person or do not have at all nor see the need to have one, thereby, leaving you with a greater advantage.
Your Distinctive attributes remains a guide towards how much market share you'll command within a demography.
It exposes the creative, innovative and catchy concepts your business adopted or will adopt to win customers, sustain business profitability and subsequently earn good market share.
Let's imagine your competitors only relying on the traditional customer ( physical) sales model and you, in this digital marketing age, taking the risk of coming up with robust paid social media marketing and ads strategy. Maximizing and building customers relation through E - commerce, in the long run, will be a deal breaker for your business, in a world your competitors might not have understood.
However, in all, the priority of every business adventure is to come in an carve out or build a small niche and gradually grow it annually, without limitations. Nonetheless, it is also noteworthy that many businesses fall apart largely owing to poor or mediocre planning. Prior to investing your funds in a particular business idea, it's important you build a customer exciting business and subsequently create a constantly reviewed business plan to guide your path towards growth and development.
Good Afternoon and more fruitful day to you all, great minds.
Let's keep building our minds on business principles and its understanding...
