Creating business ideas is one stepping stone to becoming an entrepreneur.
Starting your own business can be an interesting experience.
It offers many benefits like being your own boss, setting your time, and making a living doing something you enjoy.
For that reason, entrepreneurship also brings with it a variety of challenges. People start very well, but give up all of a sudden.
But if you continue to work towards your success without looking back, the rewards are endless, and it creates massive wealth.
This is not some kind of a quick rich scheme, you must sacrifice your time and put a stop to fruitless activities that won’t yield good results.
In this article, we will talk about:
- The traits of an entrepreneur
- Coming up with a good business idea
- Assessing the market opportunity
First, before we start, I would like to ask you one question.
Do you have the braveness to become an entrepreneur?.
If yes, then be ready to go through thick and thin times, the journey is not going to be that easy.
After reading this article, I hope you’ll find something very useful at the end of it all.
The traits of an entrepreneur
Becoming a successful entrepreneur needs sound planning, creativity and hard work.
In addition, it also involves taking risks, because all businesses require some form of investment, usually time or money.
To begin assessing if launching your own business is right for you, consider some of the following common traits that are typical of successful small business owners:
- Innovation and Creativity: The first step to starting a business is to come up with a genuine idea. It takes innovation to develop a product or service that brings value to consumers that they can’t get elsewhere. Additionally entrepreneurs often must find creative ways to tackle everyday business related problems like suppliers shipping inventory late and useless marketing plans.
- Persistence and Resiliency: Businesses, like all things, take time and patience to grow. Very few people will produce mass amounts of profits within just weeks, months and even years of being in business. There will be things that you fail at, even if your business is successful. Surely, some projects fail for a variety of reasons, poor planning, competitors offering better options, market timing and other factors. To be a successful, you need to learn and grow from your mistakes to move forward. You must be able to live with uncertainty and conquer stumbling blocks that you didn’t expect.
- Flexibility: Even the most well thought out business plans will change along the way. Changes in the market, technology, and customer tastes are going to happen and they will be out of your control. Your ability to be flexible and respond to these new updates will be the key to your business’s survival.
- Passion: As you’ve seemingly realized, entrepreneurship is not easy. If you are not enthusiastic about what you’re doing, it will be much difficult to endure through all of the challenges that come your way. Your customers will also notice, it’s not easy to sell something you’re not passionate about yourself. Mollie Breault-Binaghi, Vermont’s Young entrepreneur of the Year in 2011 by the SBA, said:
“You have to be passionate about what you love. Otherwise it’s not worth doing. Owning your own business is not easy and it’s not going to make you rich quick. You’re going to be in it for the long haul so it’s got to be something you love.”
Coming up with a Business Idea
Do you already have a business idea?.
Coming up with your own idea is the first step to entrepreneurship
Consider these questions:
What are you interested in?
Often times the best ideas come from doing what you enjoy most, which is why personal passions or hobbies often lead to rewarding businesses.
Do you have a special talent or skill that could be an idea generator?.
Even minor interests can lead
What do you have to offer?
In addition, doing what you enjoy, ask yourself what aspects of your work do you do well and what you don’t do so well.
Knowing what you can offer and in which areas you do so well are essential to building a business.
What do you want?
Obviously, one of the most vital considerations when planning a business is pinpointing what you want to get out of it.
Whether it’s making money, working with and creating something you’re desirous about, or just being your own boss – it’s crucial to know whether your business idea will give you the life you want.
What are current market and consumer trends?
Successful entrepreneurs are always on the lookout for new opportunities in the market.
As a result, while these ideas don’t always have to stem from what you already do, it certainly helps if you can combine what’s hot with your existing passion.
Assessing the Market Opportunity
If you can determine what your idea will be and you’d like to move forward with the process, you’ll need to do some basic market research to assess the
viability of your idea.
To run a successful business, you need to do some market research to learn about your customers, your competitors and your industry.
Market research is the process of analyzing data to help you find out which products and services are in demand, and how to be competitive.
Some tips to get you started on assessing your competitors and your market:
Determine your target market and understand your customer.
A common mistake with new business owners is assuming that if the business owner would buy the product, everyone else will as well.
You need to know what potential customers want, what price they are willing to pay, how they decide what to buy, and where they buy it.
Think seriously about who your potential customers are and start defining their demographics, including age, education level, geographic location, and income level.
This information can provide valuable insight into why a customer chooses one business
product over another.
Don’t forget to research free and substitute products.
These are products that are normally sold instead of
substitute your product.
As you develop your business idea, don’t forget to talk directly to potential customers these can be family, friends, and complete strangers.
See how they react to your idea.
Would they buy your product?
Ask them what elements are important to them, whether
it’s price, quality, reputation in the industry, or something else.
Get to Know Your Competitors
It’s very rare that any two businesses are exactly the same, which makes it a good idea to get to know, and even network with, your competition in person.
The rewards can include referrals (if you offer something that they do not) or if they are unable to take on additional customers, or even a joint venture.
Use the web to conduct a search on popular business listings in your market.
Assess how your offerings compare to your competitors.
What do you offer that is unique?.
How can you work that into your marketing plan to set you apart from the competition?. Is your competition only local or is it global?.
Use SBA’s size up tool to initiate your search for local competitor.
Understand your industry(niche)
Moreover, you will need to know what others in your industry are doing, even if they are not your direct competitors.
Trade Associations and your local Chamber of Commerce are good places to start.
Look up the North American Industry Classification System code for your industry and use that to focus your search.
Use the internet to find reports and analysis of your industry.
This will help you see if professionals are predicting a downward or upward trend, any new laws and regulations that you have to conform to.
There are several free resources that can help you conduct marketing research.
The US Census Bureau, FedStats.gov, and the Bureau of Labor Statistics are good places
Remember, there is no market research source that will answer all of your questions, so you’ll need to get information from multiple sources.
Additionally, market research is an essential to the ongoing success of your business even after you start.
You should never stop learning about your customers, competitors, or industry they are constantly changing.
Finally, if you wish to start a business, try focusing on something that is long-term, work hard to protect what’s yours and don’t allow anyone to destroy your efforts.