Whether the idea is original, borrowed, or bought, the idea is the heart of any business through all stages of its life. If there is no idea, there is no business.
The idea is what will keep you fired up, and give you pride. Plus, the idea is the most fun part of business. So go with an idea you can get excited about.
2. The ability to provide the product or service.
Is it possible for you perform the service or provide the product to a high enough standard so that you can get return business and referrals to new clients?
Make sure you get the relevant education and experience in the same industry as your intended enterprise.
Research your product or service and benchmark the competition to see how they do it and how you can do it better.
3. Personal contacts for acquiring information and other resources.
Networking is an essential skill for most business people, but especially for entrepreneurs. The strong association between the entrepreneur as a person and his or her business, demands entrepreneurs get out into the world and create and maintain business relationships.
Active networking and participation in network partnerships can help you meet people and build mutually beneficial business relationships.
- benchmarking opportunities against competitors and similar-sized businesses
- comparing and discussing issues of common interest, for example supply networks, customer service and legal and regulatory developments.
- developing ideas, innovation and knowledge of best practice.
- raising your business profile by becoming an established networking member.
- expanding markets by generating business contacts such as customers, suppliers and partners.
- overseas partnerships, through international exhibitions and conferences.
4. Money to keep the business going during the start-up phase.
Don’t think you’ll start making money right away. What do you do till the cash starts flowing? And where can you get the upfront money your startup will need?
A possible source of money is “angels”. They are successful entrepreneurs who are willing to risk money in a new venture if it promises a good return. Find rich people in your area and have an excellent business plan ready. This will take time and networking. Another possible source is a SBA loan at a local bank.
If all sources decline to participate, you have the option of “boot-strapping”, which means starting small and growing carefully on the cash flow your business generates.
5. Sufficient customer orders to cover all costs and expenses and to provide a profit.
Ensure there is a demand for your product or service. Try and pick a growing industry, as opposed to one that is crowded with suppliers. Take advantage of major trends. Establish reliable connections with vendors who will be supplying your materials so that you can cope with any increase in demand to your business.
Many entrepreneurs have tried to start businesses without giving enough attention to each of these requirements, their businesses have failed.