Have you ever had a business idea that got you all excited? An idea that you talked about for days and weeks. . .only to have it flop in the end? You know, that idea you thought was going to make you unapologetically rich (finally!) but sadly failed. Trust us. We know how disappointing that can be. How could all those days and weeks of planning have ended up that way?
But just because you failed one business (Or two. Or three?) doesn’t mean it’s the end of the world! There are four foolproof steps you can take to ensure that you get your next business right and we’re here to walk you through each step.
Are you ready? Let’s roll!
Step 1: Know thyself
Before you jump straight into making a feasibility study or funding the first business idea that you thought of, do some intense soul-searching first. The best and most profitable business ideas often come during these soul-searching sessions, so go ahead and ask yourself. . .
What are my strengths and skills?
What am I passionate about?
How much capital are you planning to start with?
Are you really prepared to become an entrepreneur in the fullest sense?
The last question is very important. Let’s be honest. Some people open up a business just because they like the thought of running one, but they don’t really think about whether or not they’re ready to deal with setbacks. And that’s exactly why a lot of businesses end up shutting down in their first year! So be very very honest with yourself during this stage. Remember: Whatever your answers will be will serve as your foundation for the succeeding steps.
Step 2: Come up with a business idea
Let’s say you’re done doing soul searching, and you’re now considering which business idea to pursue.
Suppose you have two options for your business. The first option is for you to open a business that people guarantee is going to be a success. The numbers all tell you that this business is going to do well. Sounds great, right? After all, isn’t money the point of running a business? The problem is. . .(yes there’s a little bit of a problem here), it’s not something you are passionate about.
The second option is for you to open a business that you’re 100% passionate about. Now that sounds better! The catch is the ROI for this business idea. Compared with Business Idea # 1, this second idea doesn’t look promising at all.
So now here comes the hard part—deciding which business to open. Will you open a business based on your passion? Or for profit?
That does sound like a real dilemma, wouldn’t you say? You definitely want to start a business you’re passionate about, but you just can’t afford to run at a loss and against all the statistics that say no one is going to be interested in that idea. Could there be another option, perhaps?
Well, we’re here to tell you something: Businesses built on passion rather than solid statistics often end up becoming a heartbreaking failure.
Now we’re not saying that you have to ditch your passion altogether and just focus on money, money, money. As you know, we’re all about helping each aspiring entrepreneur go after their BIG DREAMS. That’s why we’re Dream Nation, right?
What we’re trying to say is that before you pursue a business idea simply because it’s something you’re passionate about, think of the bottom line. Remember: You can’t run a business on passion alone. You need cash flow as well. So yes, it’s great to run a business that you actually love but don’t forget to make sure that you base it on solid statistics as well.
Step 3: Do market research
Now that you already have a business idea, it’s time to do some research! We know it can be very tempting to just skip this part. (Who needs to do research when my gut tells me this idea is going to work?) But before you fund that idea and make it happen, remember what we talked about just a few paragraphs back? You need solid statistics to back your decision.
Just because everybody else in that industry has had smashing success doesn’t guarantee that it will be the same for you. Remember, you’re going to have different marketing strategies and branding techniques, and you’re most likely going to have a different location and market. So it’s better to do some research first before you go all in.
Here are some things you need to include in your market research:
Once you’re done with your market research, it’s time to assess whether the business idea you were planning to pursue is actually worth the investment. And while it’s all too easy to get swayed by your emotions when making business decisions, remember that numbers DON’T lie. So if the numbers don’t add up—if they don’t support your hypothesis that your business idea is going to rake in cash—you know what to do.
But what if your market research tells you to pursue that business idea? Then, congratulations! You have found yourself something that could possibly grow to become the next big brand on the market! Now all you have to do is proceed to the next step.
Step 4: Plan strategically
Do you see the keyword there? Yes. “Strategically.” You see, even the best business idea on the planet can end up a total flop if you fail to plan strategically.
Sounds scary? There’s really no need for you to be so stressed out. Business is simply just a matter of knowing who to pattern your techniques after. Take note, we said ‘pattern’ not ‘imitate’. It’s a great idea to have products and brands and entrepreneurs to look up to for inspiration, but it’s not a great idea to try and copy them 100%.
If you want people to recognize your business and the brand that you are planning to introduce to the market, you need to be authentic. This is true especially when you take your business online (which you definitely should do).
But what if you’re struggling with your business plans? What can you do to keep yourself from accidentally ruining your genius idea? Now that’s when you call in the experts—people who you know you can count on for advice because they’ve had huge success with their businesses as well. And did you know that you can tap into their expertise for FREE?
Imagine getting advice from the experts without having to pay a dime for their time or their knowledge! And we’re not even kidding. How is that possible, you ask? Well, that’s exactly why podcasts like the DreamNation podcast exist.
Each week, we bring on experts into the DreamNation show to help aspiring entrepreneurs like you build their businesses from the ground up. Curious about our podcast? Feel free to check out all our podcast episodes by clicking on this link! We’re sure you’d find something of real value to you and your business.
Meanwhile, here’s an episode that we know you’ll love. Featuring Sean Catrina, a self-made entrepreneur who started his first successful business at the age of 23, this episode will help you figure out how to make sure your business will work for you.
Click here to view the show notes or watch the episode below.
<insert video of DN 156 here>
We hope you found this article helpful! And do feel free to let us know how your business goes in the comments section!
Want the latest business and marketing strategies sent straight to your inbox? Sign up for our newsletter today for the full DreamNation experience. Talk to you again soon!