What Makes an Idea a Viable Best Small Business Opportunity ?
Too many potential small business owners, it may seem that in the current economic climate and the possibility of redundancies across all segments of the economy, it is an appealing prospect with you having great business ideas to begin the process of your business ownership which you daydreamed of achieving. The desire of being your own boss and the freedom it offers and the possibility of high income may seem tempting. Unfortunately, if the route to success is being your own boss, it is not always so straight forward. If it were more small businesses would be successful and survive in any competitive industry. Let’s face it this is not any normal time, and yet many commentators are suggesting now could be the right time to start your own business.
While it is true that all businesses start from a relevant business idea the inverse is only occasionally true – out of a countless variety of small business ideas, even those that are considered to be good ones, only a few go on to become viable businesses. So, what determines whether an idea is a viable business opportunity or just an exciting thought? The fact is that every idea has the potential of turning into a business and the business does not have to be a just a bricks and mortar business there are good opportunities to develop your online business ideas – provided the business fulfil the following necessary conditions.
Before you move onto evaluation of the ideas you have generated for a new business, it is essential to access your own skills against those required to start and manage your new business effectively. It is like having an interview for your new career move, and remember if you are looking to banks and other public organisations for loans both short. Long term to start your business; they will as part of the approval procedure is asking you these very same questions.
You have probably used a skill assessment tool at some point during your career, and there are many templates available by simply doing a Google search, I have attached a Skill Assessment from the as a PDF below you could use as a starting point.
Click on the Link Below:-
Skills Assessment Template
It is also essential to access your own personal characteristics to help you decide whether you would enjoy the demands of running your own business. This should not be a pass or fail, because many people would not enjoy running their own business, but flourish in an established company. Be honest with yourself, because it is a big step to take, I do not want to discourage you, but it is vital to assess all aspects before you start the building progress for your new business.
A business can only be successful if there is first and foremost enough demand for it. Even if it’s the sort of business that creates a niche for itself, you need to make sure that there is potential for that business to succeed among its customers. Not all companies are born out of a gap in the market, but all successful business either find a gap to fill or have enough impact on creating a gap.
2. Potential for Return
Once you have established that your idea is one that many people would respond well to, it’s essential to ask yourself whether it would also provide a lucrative return. There are some cases in which the investment required to turn an idea into a successful business, also has the potential for a high return on the investment. There are other cases, however, where it would take a considerably high investment for minimal return margins. If your idea, unfortunately, falls into the second category, it is unlikely to succeed as a business.
· Investment: – where would you be wanting to obtain the finance, you need for your new business. One of the lending Banks may be willing to provide a long-term loan and overdraft based upon your business plan; however, they are only likely to offer a loan which is secured on your property.
· The Local Authority: – may have development loans available for a new business which they considered likely to succeed in their catchment area. The local authority will usually have Business Advisors who will help you in the development of your Business Plan and direct you towards suitable sources of investment.
· Prince’s Trust: – If you are aged between 18-30 years of age the Trust will provide support and training and startup loans may be available for the best small business
3. The uniqueness of the Best Small Business Idea
Before you consider your idea as a prospective business, ask yourself if there are already businesses catering to it. If there are dozens of companies already out there, chances are people are not going to need one more. At the same time, if no business caters to the idea that you have – ask yourself whether that might be because there is no need for it. If the concept seems unique yet relevant to a range of people, chances are it has the potential to be a business opportunity. If, however, the idea looks to niche to be widely applicable or it feels like the market is already saturated with businesses born around it, you might find yourself struggling to make a dent in the competition. Ask yourself what makes your idea unique, even if there are similar businesses out there.
· Look at the local marketplace to evaluate the competition, are there existing business in the local and larger community, and are they a profitable business what would you be able to offer to potential customers that others cannot. Please do not base your offering just on price, what added value can you give to the customer community in terms of the product or service you will provide.
· A useful source is to look at the various franchises available in your niche. Not necessarily to buy into a franchise but it may give endorsement to your idea because others have developed a lucrative business around your idea.
4. A Strong Business Team
Even if your idea is the perfect seed needed to grow a business from, businesses are tough to work. It is especially challenging to start a business from scratch and let it to grow to its full potential. In fact, establishing a business is often much harder than maintaining one.
If an idea is expected to become a viable business, it is vital that you, as an entrepreneur, have a clear idea of what you wish to achieve, whom you are targeting as your customers and how you intend on doing that. This should be part of your Business Plan, if you do not set targets with timings, you will not know if you are on track, and take action to rectify any deviation from your plan
As your business growths, you may need a dedicated team that can deal with marketing, finances, legalities etc. At the start, most of these activities will be down to you, even at a fundamental level, the value of professional expertise cannot be underestimated or replaced by the power of a good idea.
I would typically suggest that you join local networking groups to improve your visibility within the community. Obviously, these groups are not meeting in their usual locations. Still, many networking events are being held online, and a number also provide useful training for business owners, in terms of marketing and finance.
Networking sites: –
There are many more networking groups within your Region, just Google for networking groups in your area.
Business Plan Success Factors
Your Business Plan should include the specific factors that are key to both the success of your startup business and the management of your company
Your Main Purpose Is to Make and Keep Customers:-
The primary purpose of your business is to find new customers and keep them so that they become long term customers. How you find customers for your business is one of the difficult parts to a new business. The various types of advertising used depends on your budget, newspaper, local magazines, local radio, Twitter, Facebook Business Page and the use of ads, Instagram if photos are an important aspect to your business such as photographers, travel, and landscape gardening.
It is estimated that the cost of finding new customers rather than retaining customer s can be more than 5 times more than keeping your customers. Therefore, it is vital that you have a strategy in place to meet the needs of your customer base and that you never become complacent so that you develop a loyal customer base.
Customers Satisfaction is a Measure of Success:-
Most businesses have developed a customer satisfaction report so that they can evaluate their customers’ experience and look for gaps in this customer journey which you can resolve. Your customers should be satisfied with your products and services, this will encourage them to become ambassadors for your business.
Value Added is A Key Requirement for Your Business: –
You need to look for ways you can add value to your products or services, it may be offering free delivery, free estimates. Added value may not be expensive for you, but your customers recognise the benefit to them.
Your Strategy Should Be Continuous Improvement:-
The business world is rapidly changing, online shopping is now the fastest growth area in retail businesses, The John Lewis Partnership has started store closures because they recognise sales are moving online. They estimate that in 2021 over 70% of their sales will be by this route. You need to continually look for ways in which you can improve your business to meet the increasing demands of your customers.
Be Critical of Your Idea:-
It is imperative that you critically analyse your idea from all possible angles and review any areas that can result in potential failure. While there is no business immune to failure, it is essential not to let your own favourable bias towards yourself cloud your judgment. In the long run, just as you are going to benefit the most from a successful business, you will also be the one to suffer the longest if your business fails. Once you have decided that your idea does indeed have the potential of becoming a successful business, speak to professionals who can guide you towards the best plan of action, especially if you do not have any experience as an entrepreneur.
Remember, even if you have a great idea, your idea can only be viewed as a viable business opportunity if it has the potential to become a business that can both grow and sustain itself in the long term. Establishing a company is only half the battle – maintaining it is the other (much longer) half.