Before You Start a Business
- Come up with a great business idea: Great businesses are built on great ideas. Discover your own great idea by drawing on some basic principles plus inspiration from famous entrepreneurs. But first, you must know who your customers are, which is not as straightforward as it sounds.
- Understand your market: Starting a business is risky. Give your business the best chance to survive and thrive by taking three important steps: conduct primary and secondary research, understand the five key success factors, and create a competitive landscape table that rates the strengths and weaknesses of your competitors.
- Prototype your idea to make your idea a reality: Add two important skills to your entrepreneurial toolkit: writing a theory of business and building a prototype. By following these two actions, you’ll be able to refine your business idea, demonstrate that it’s possible to achieve, and show that your idea delivers what your customers want.
- Perform market analysis and develop a marketing strategy: Continue your examination of the business plan by focusing on the marketing portion, which should include your research and analysis of the market as well as a comprehensive marketing strategy. Stress the importance of telling a persuasive story.
- Conduct risk analysis: Potential investors reading your business plan will want to know that you have a plan to deal with possible obstacles and catastrophic surprises. Discover tools such as the Porter Five Forces Model and the SWOT analysis, which provide insight into critical risks and how to address them.