1. Tell Your Idea someone You Trust
If you think your business idea has real potential, do not keep it to yourself. Many are afraid that their idea could be copied or stolen and therefore refrain from sharing it with others. But an exchange with a trusted person and their honest feedback can help you improve your idea and realistically assess its chances of success. In some cases, feedback can be painful, but it is an important first step towards implementing – or not implementing – your idea.
2. Carry Out Market Research
After you have formed and refined your business idea, you need to do some market research. The following questions need to be addressed: What kind of companies are there in your business environment? How do you differentiate yourself from their offer? What is your target market?
When doing your research, make sure you do not just focus on successful companies. Are there any companies that have not been successful? What can you learn from their mistakes?
During the research you might also learn things that could make you rethink or redesign your original idea. Is there a niche market? Is the market overcrowded? What competitive advantage could you create for yourself?
3. Write A Business Plan
Another important step for the realisation of a new business idea is to write a business plan. Such a plan allows you to work out the central components of your business, in the planning stage.
The business plan should specify the following points in detail:
- The company’s story and how you intend to communicate it to potential investors and other interested parties.
- Financial and operational objectives
- Projections and how you imagine the business’ success in the future
It is advisable not to work by hand, but to enlist the help of a business plan tool. The business plan module of the Atlanto accounting software is accurate and straightforward – give it a try!
4. Create A Prototype
Also very important is the creation of a prototype. This allows you to test whether your idea or version is really feasible.
Prototyping is not only for companies that produce physical products. A prototype could be a simple website that represents your future business and that you can use to attract potential customers. A tangible product is not needed. It is primarily about producing something that shows whether there is a market and whether someone would be willing to pay for your product or service.
5. Raise Capital
Now you need to think about how much capital you need for your start-up and how to finance your business. There are several popular financing models:
- Bootstrapping: The company is built up by the founding team with little or no external investment.
- Family & Friends: The capital is raised from the personal environment (family and friends), be it as a loan, investment or gift.
- Bank loans or funding organisations: As a start-up, it can be difficult to apply for a bank loan. However, there are special organisations that provide financial support for founders in the start-up phase.
- Business Angels: These are often themselves experienced entrepreneurs who invest in start-ups and new companies. The advantage here is that, in addition to financial support, they can also provide practical help in setting up a company.
- Crowdfunding: Here, not just one, but several investors invest a little money in your company. Platforms such as Kickstarter make it possible to collect a high number of micro-donations.
Once you have taken all five steps described above, nothing should stand in the way of implementing your business idea. Good luck!
