Let’s assume that you are struck with an irresistible idea that you wish you could materialize into a full-fledged business, but you are not courageous enough to start over. Or you are feeling overwhelmed thinking about turning an idea into a functioning business. If so, then you have arrived at the right place. This article will cover a few fundamental steps that will guide you to turn your idea into a bonafide business.
Steps to Transform an Idea into a Bonafide Business
1. Get into the Shoes of a Problem Solver
You might be thinking that your idea is fabulous and it can change prospective customer’s problems. However, a small reality check- ask yourself what key issues are being solved by your idea? Are solutions provided unique and relevant? If you are offering something new which has a leverage of convenience over the products or services that exist already, then you can claim your ideas more confidently.
For example, Amazon, a leading e-commerce company, provides cost-effective and convenient e-commerce services, which wasn’t the case with existing e-commerce platforms. That’s how Amazon could manage to seize the market and get as successful as it is today.
Thus, your idea should turn into such products or services that could enhance your customers’ lives by solving some key issues.
2. Discover Your Market
The biggest mistake you will ever make before starting a business or building a startup business is avoiding market research. Ask yourself, who is my target audience? Which market area is suitable for your offerings? Are there any potential competitors, and how will you strategize your business plan in that market area?
You must be having an incredible solution, but it is crucial to project it in the right space to get seen and received. That’s why there is no alternative for market research.
3. Build a Support System
Turning an idea into a functioning business is often overwhelming, especially when it’s your first-ever enterprise. Thus, it is necessary for you to start building a support system from the beginning of your entrepreneurship itself.
Having the right business partners will provide you with support and assistance in building your business. It also creates an impression that you actually have a great idea to consider. Attend various business summits and gatherings, introduce your business ideas to some seasoned entrepreneurs and seek guidance and valuable insights from them. This way, you build connections and help your business garner the necessary support.
4. Develop a Financial Model
After follow up through solid market research, you should now focus on developing a financial model. Start with developing a ‘bottom-up’ financial model that will help you find how your product or service is going to be created, marketed, and finally sold out to a customer. Now to assess your projections, develop another financial model which would take a ‘top-down’ approach. It will help you examine your market’s size and what goals you should achieve to earn a profit.
Once you are done with these financial models and get some clarity, move on to plan your business’s first phase. The first phase is about getting all the crucial stakeholders, your teammates, on the same page. Communicate your mission, objectives, target audience, competitive edge, and other strategies with your team to ensure uniformity.
5. Decide Your Source of Capital
Having clarity about capital sources will boost your confidence. You can raise capital from many sources, such as self-funding, building funds from friends and family, loans, investments, or credit cards. Venture capitalists and angel investors are some other sources you can raise capital from, depending upon your need. No one of all these sources is full-proof. Every source has its own benefits and risks.
6. The Minimal Viable Product
The minimal viable product is the one that is already workable yet has some scope for improvement. Before jumping directly on building the main product, you can start building a minimal viable product that provides you with necessary feedback before working on the main product.
7. Work on Feedback and Redirect
Most of the time, the feedback you receive from early adopters compels you to change your approach’s direction, and that is entirely natural as long as you are receiving authentic feedback. You have to invest enough time working on your business model before getting approved and accepted by your target market.
8. Lead with a Positive Attitude
Entrepreneurship requires a great deal of strength and resilience. Many times, people tend to doubt your ideas or your business as a whole. It can affect you negatively as long as you decide to believe in your abilities. It needs a positive attitude for you to overcome self-doubt and fear of failure. Keep persistent in the process and lead with the right attitude as the right attitude can transform your basic idea into a successful entrepreneur.
It does take a lot to have the confidence to put in every effort into building a business. But sometimes you are not really aware of all the qualities that you have and all the amazing things that you can do. It just needs the right plan, a straightforward strategy, and the confidence to implement the plan. So, if you have an idea, then don’t hesitate or step back. Shape it into an amazing business that not only spells success but inspires others as well.