Clearly define what your business offers
Have a crystal-clear business pitch of what problem your business products or services solve, before you launch your business. Learn how to perfectly answer the question, “What does your business do?’’. This is probably one of the most important questions you need to consider before launching your business. Visit our website resources page for a free business pitch template.
Customers are not always interested in the history of your business and hearing about how you started. Most people want to know how your business solves their problems. Your business products or services should provide a solution to a problem which people are willing pay for.
Who is your ideal customer?
You have clearly defined the problem your business solves. Now it’s time to clearly identify who will want and need your products and services. Think about who your ideal customer would be, are they working full-time, what is their average income, how do they prefer making purchases, do they have children, what are some of the biggest challenges they face?
Know your numbers
How much will it cost to start the business idea on a small scale? Just the basics without any business loans. A good starting point is a cash flow projection this will help you list the business income and expenses to understand the costs of starting your business. Need a cash flow template? We got you covered, checkout our website to download a free cash flow template.
Test before you invest
So, you have a clear idea of what your business offers. You know the costs to start and the profit you will make by using the cash flow template. The next step, TEST BEFORE YOU INVEST.
Yes, this step will allow you to check your idea in the real world. During this time, you should be selling your products and services on a small scale to test who is willing to buy and how much they are willing to pay.
What did you learn during the Test before you Invest stage?
Did your cash flow projection have the same numbers you planned? Did your customers request changes to your products and services? Was your pricing too low or too high? Did you make a profit?
Lessons learned before officially launching your business
Now you have real life experience testing your business and what needs to be changed, improved or included in your products and services. Most importantly, you tested your idea on a small scale which did not require a huge investment.
Great, now you get to decide if it’s time to launch your business
Here are a few questions to consider;
Is your business idea ready to go to market (do you have customers)?
Have you defined the profile of your ideal customer?
Do you need more time to make changes to your products, services, pricing?
Will you have cash to invest or do you need a business loan?
Can you start small without a business loan and grow the business?
Do you need to register your business now or can you operate as a sole proprietor?
In our next blog post we will discuss the types of business entities you can register and the easiest way to register your business online.