An idea isn’t enough. First, ideas aren’t businesses; they’re just ideas. It is all too easy to confuse an idea with a result. We all make this mistakes sometimes. We have a great idea and then daydream it though to fruition. But then as we start working the idea we often realise that it is impractical, unprofitable or a Google search reveals too much competition . in the market. You might also realise that there is some piece of legislation that prevents the project coming online or being scaled. It is then that you realise why no one else is doing this business.
No matter how good your idea is, success is a matter of execution.
Businesses take hard work, persistence, cash management and all the other things that go into the day-to-day running of a business.
Solid business operations beat great business ideas every day of the week. An idea is just an idea until you do something with it. Execution is key. Psychologists always say that we fall into different business personalities – the creative and the practical, a successful enterprise needs both. So if you are great at ideas but can’t use a spreadsheet you need to look for someone to join your team who can provide this expertise.
You don’t need a great new idea to be successful. In fact, most good, profitable businesses are developed from existing, rather mundane ideas.
Nestle did great product innovation when they launched the Nespresso machine but many companies are flourishing selling compatible coffee pods online. Apple invests vast amounts in product design but many entrepreneurs live very well importing and selling Chinese accessories for Apple phones.
Who are your customers?
A healthcare product might be targeting standalone health clinics or large hospital systems. Your product might be suitable for both markets but maybe not. The distribution channels might be very different, so time spent honing your target market is time well spent.
If your product is a football-oriented mobile game catering to 18- to 24-year-old “gamer” males, be clear in your planning,. Stating that your potential customers could include anyone with a mobile phone is too broad and nonspecific be targeted!
What is your customer’s unmet need? The original iPod made music portable and personal. The need was met and fortunes were made. From the need to budget flexibly, the spreadsheet was born.
Ask how are your customers addressing this need today? For example before antilock braking systems, drivers pumped their brakes manually.
Your idea can be too new. It’s easier to get a piece of an existing market than to create a new one. many venture capitalists, prefer investing in companies that were “second” because creating a new market is risky, difficult, time-consuming and expensive.
Remember, the person or company who first invents a new product or service spends a lot of time and money figuring it all out. You’ll find it much easier and cheaper to get established if there’s already an infrastructure — such as suppliers, distributors, trade organizations and solid historic data.
Do your research. This is why savvy businesses run focus groups before launching their product or service.
Entrepreneurs, especially those creating new products or new technologies, often become so excited about the product that they aren’t focused on the realities of their market. So test it first before committing serious funds.
Staring out with a virtual office rather than an expensive office rental could be a good move. Talk to the team at Hold Everything.