1 Is there a market for your product or service? You have an idea for a product or service that you think people need or want, but how do you determine if your idea really would be in demand? A Market analysis is critical to determining the feasibility of your business.
2. Is this something you could do full time (not 7 days a week, but 40 – 50 hours which includes time to market, run business etc)
3. Are your rates competitive? More importantly are you charging enough? You never want to undercharge.
4. Can you train someone to do what you do? More hands mean more income.
5. Do the resources exist to handle the aspects of your business that you don’t know or don’t like doing? Accountants and lawyers can help you handle these tasks.
6. What is your overhead? Consider inventory, marketing, etc
7. Can you start part time and move into full time? Starting full time can be extremely difficult if you don’t have the financial resources to just quit your current job and dive in. Is your businesss idea time and resource flexible to allow you to work around your current job while building your customer base?
8. What is your business Model? The term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. Have you defined yours?
9. Who are your competitors? Have you listed your competitors and their competing products?
10. What are their rates? Do they charge more/less for the same services?
11. What differentiates you from the competition? What would compel customers to buy your product instead of your competitors?
12. Are you self motivated enough to run a business. Time for self-reflection and hard honesty. Can you motivate yourself to do the work when there is nobody but yourself watching?
13. What are your strengths?
14. What are your weaknesses?
15.What are the risks. List all the risks and liabilities you can. Keep this list and add to it as you think of new ones.
Take some time to answer these questions before jumping in feet first.
