millennial finance

HOW TO TEST THE WATERS BEFORE LAUNCHING A BUSINESS IDEA

Do you have a brilliant business idea that you want to launch into reality?
Hold up right there…have you tested its viability?

Let me break it down for you. Before you eat or drink something new you always take a bite or sip. This bite or sip is the one to determine if you’ll go all in. When serious about starting a business you do the same thing and see if the idea is viable.

Even at 21, I  have done my fair share of mistakes when starting a business. Most of them, actually all of the business ideas I didn’t test have been epic fails. That includes my previous blog. In spite the fact that the bigger problem was my web host, I failed terribly. Wait…actually that was my mistake, I made the wrong choice of web hosting. It was quite cheap and came with another package I didn’t even care about. So long story short, learn from the written mistakes to make less of your own.

This is possible by testing the business idea to prove it can actually work. How?
Here are the ways you can determine the chances of success of your business idea;

1.Self Questioning

So there you are, ready to launch a business idea. These should be the questions you should ask yourself before anything.
-Why this business? Why do I want to start this business?
-Any business should be a solution. What problem do I want to solve?
-Who is my target customer?
-What’s the end goal?
After these questions, you’ll definitely be psyched for the next step.

2.Assess Competitor Strategies
Who else is providing the same solution you want to? How are they doing it? You should look into what others are doing and that way you can even find your angle to be ahead of them. Without competitor assessment, you won’t learn from their challenges and mistakes. Getting into a business that way might either not work for you or you’ll end up like the normal other entrepreneur providing the same services. You’ll have failures and losses you could have avoided.

3.Asses The Market
There are no great results as getting the feedback from the target customer. As you do your assessment on your market, you get a clear picture of what the customer would really want and work towards that. There is no better business than one that gives the customer what they want.

4.Research The Possible Risks and Challenges

One of the most important testing business idea strategies is knowing the trouble you can get into in the business. This helps to avoid surprises that can lead to bad business decisions. You have to get to know the risks you are willing to take and the challenges that come in handy. Once you know all this you can be ready to go to the final step…

5.Evaluate Your Capital
So after you have gone through the whole of this thought process and getting to know your business idea, in reality, you obviously have combined the possible amount of resources you are supposed to put in.  You obviously do not think that starting capital will be all and you’ll be enjoying the profits henceforth?  There are resources that will be needed to set the business fully in motion.  That’s why ”making a business idea work by all means” includes setting aside extra capital to ensure the business starts to run without staring back.

Testing is a business startup step you shouldn’t miss to avoid wasting time and resources figuring out the business after launching. So what’s it gonna be?

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