You get people shouting stuff about small business ideas all over the Internet. One guy was screaming to get attention with the statement that an idea is 1% of success while execution is the 99%.
There is also that statement about 20% or even a lower 10% of ideas succeeding in their first year. This has merit when you consider that the study found that venture capitalists only express interest in fewer than 5% of new start-up idea proposals they review (Source: “Are “better” ideas more likely to succeed? An empirical analysis of start-up evaluation”). Continue reading “Evaluating business ideas for college or university leaving graduates”
An independent flame-grilled chicken restaurant started up at a corner site in a suburb where a large chain closed down its outlet selling similar product. The owner of the business ran it well, gave good service and served a delicious product but closed within six months.
The problem was that the small business owner did not accurately estimate market demand in the suburb. Perhaps he should have been more cautious knowing that the large flame-grilled chicken group was exiting the retail space where he wanted to open an outlet. It seems that the small business owner pinned his hopes on attracting enough customers to his business to make it viable. Hope is not a strategy. The larger chain group new something about customer demand in the area that the ever-hopeful small business owner did not know. Continue reading “How do you estimate customer demand for your start-up business?”
In these times when two incomes don’t always cover your monthly living expenses, more people with an entrepreneurial flair are starting new products and services and other income-generating activities.
But here’s the thing: you need to know whether there is demand for your product or service before you start investing money in it. It also not advisable to give up your day job, your main source of income, because it’s much harder to get a new product or service off the ground than most people think.
So what you do? Have you tried out something like this before? What have you found to be the best way?
Any sort of start-up needs to prove its business model. In fact, a successful entrepreneur and entrepreneurial coach said that a start-up is really a business in search of a viable, sustainable business model. It may take you one year to establish the success of your start-up or even longer. During this time you would need to perhaps change direction from your original approach as you try to seek demand for your product service in the marketplace. Continue reading “Put your idea to the test before you invest”
For start-ups and entrepreneurs who want to come up with viable business ideas the first thing is to consider the marketability of your new ideas.
How do you know if your business idea will be attractive enough to get potential customers to buy? What makes one idea more marketable than another? What could you do to increase the chances that your new business idea will sell?
One of the first things to ask yourself is if your business idea solves a real problem for potential customers. So many products and services run aground because they don’t solve people’s problems easily, quickly and cost effectively. The other day I saw an app that lets you customise your own newspaper. Does this really solve a “problem” for online readers who may enjoy a range of publications. Continue reading “How marketable are your new business ideas?”
It’s that time of the year. One day it feels like spring has already arrived but the next day its back to winter.
In Johannesburg the mornings are much lighter but the air still has that cold-old crispness about it. The nights are cold, so cold that the iciness clings to your jersey and you can feel the cold against your body.
With the light in the mornings coming early now the birds are up and about, chirping outside in the trees. For months you only heard them in the daytime. Now you can hear the Hadedas, Louries, Sparrows and Finches bright and early. Continue reading “When all those false starts can be good”
Small business owners wanting to expand their product or service range may come up with a new business idea, rush into it without much thought because they are swept on a wave of enthusiasm and then discover that there is little or no demand.