There is no way to figure out that an idea can turn into a real-time money making business unless you try it out. There is no exact way to find if the market is scalable and can convert your idea into net profits.
You may fail at first, but if you keep trying it out, you might improve the business and make huge into the industry. However, at first, you need to find out a way to start up the company. For that, you must learn the basics of how to do a business and take it to the next level. We have set up few quick tips on how you can make you’re first to start up a profitable business.
Conduct a Survey
When you have an idea in your mind, and you think it will work, then you have conducted a research everywhere. First of all, you have found if your business requires any improvements. There is a possibility that your company is missing many important points that need to fill before starting a business. You do not want to start a business then later find out that there is another way around to get the job done.
Use the latest technology to start getting feedback from the social media sites. Use forums, question and answers websites to get valuable feedback from the people. One mind can invent a unique idea, but when that one-size-fits-all approach is combined with more thoughts opinions, it turns into an ultimate idea.
Then where to start? Yeah, I understand that the every business plan is different from each other, so it’s hard to find out where to start. I will give you few examples on how to conduct a survey.
- Visit local business, which are already running a similar successful business.
- Mail the entire major entrepreneur with your idea and ask them for guidance or Tips on how to make it better (Professional tips add great value because they know what makes money and which isn’t). It can help you identify the errors in your business model so seek pieces of advice from the entrepreneurs.
- If your business model is B2C, then go door to door to find out the point of views and what customers are looking for and you can work as part time in a place where the company is selling similar to your product.
In every business idea, what most common mistake is made is that the notion is not taking very seriously. If you intend to come up with an idea over a dinner, but you are not making it professionally, then there is no point in taking it to the next level. You have thought of the cost of plans and other expenses before starting a business. Since you are willing to take the risk of starting this business, you have to make sure to have enough funds from your end and get your business started, or else you might end up in debts, and the worst is to drop in the middle of the game.
You have to take a note down and make a list of the cost of expenses along with some additional capital aside in case if you meet with unexpected expenses in your way. If you are not ready, then work hard make more money but do not take up a loan.
Focus on Investment from VC’s
If you wish to grow faster in the business, then you need a lot of attention from investors. Getting their attention to your business is difficult because they go through many startups each day so they know a lot of things which you might not be aware of. When your business is scalable and has more advantages than disadvantages in making huge in the industry, then you might have a chance to raise the funds over in millions.
Convincing VC’s is tough, especially when the company is a start-up. The best way to convince the investors is to work in the business from day one to show them the evidence that the business is worth investing on.
Investors do look into many aspects and more question than your paying customers, so be ready to answer all of their answers. What are the things the investors look into a start-up business, let me take you to few examples questions asked during the meeting.
- Have you started the business small?
- Have you tested your idea?
- What is the monetization method?
Your chances are slim if you are only thinking about it. The possible way to convince VC’s is to start small and grow it to a minimal level, and then this is how the meeting questions will be.
- How much margin and net profit is the start up making?
- How much investment are you looking for?
- What is the position of your business after five years?
Running startups have more chances to get investment than the one which is just starting up.
Learn Marketing Strategies from Professional & Mentors
What is important for every business model is to learn who the customers of your products are. This is a major factor because you do not have time waste on working blindly for months after investing into a business. Many entrepreneurs started their journey years ago, and many of them have contributed to the community on what techniques they have used and what they have learned from their start-ups.
First learn that basics of marketing from mentors and implement them on your start up plan, many books teach you on how to calculate the numbers involve in the business (Cost of the program, Margin, Investment, Expenses, and Net profits).
Joining training centers aren’t worth it because there are many experts are teaching you valuable knowledge they have experienced during their journey, which are on floor skills. Make sure to implement those techniques and Nothing can change an experience.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.
Rajkumar, you have mentioned some great points here. Isn’t is better to bootstrap your own start up ? As you know, nothing is this world comes for free. When we take money from VCs, we also need to sell some percentage of share of our company to them. When you know that the business you are in is a profitable one, one should put more all his effort in running the company by his own money till the time he can. The concentration should be more on running the business and making profits from it rather than looking for funding. Once you make a buzz in the market with the kind of profits you are making, VC’s will run after you , and that should be your ultimate aim. 🙂
These are great points. Raising money from a VC is probably the toughest thing that an entrepreneur can do because they are so smart and have a lot of experience under their belt investing in companies. That’s why taking the steps to research and knowing the industry someone is entering is key. Great post!
This was an eye opening post. I think too often people get ideas but don’t know how to implement because they don’t have a solid plan. As I’ve learned more about financial independence I see how valuable it is to set plans and goals. Otherwise saying that you wanna do something and not having a plan in place is most likely destined for failure.