A
Viable Business Idea
There are lots of great
business ideas out there, but not all are viable. The ideas that have
the best chance of succeeding are those with demonstrated demand that
address an underserved niche. In other words you want to be the next
Microsoft, but you don't want to compete with Microsoft. Size
of market is also critical. Venture capital firms, for instance, look
for opportunities with a market size of $1 billion or more. When sizing
up the size of the market for your own venture, be sure that the pie
is big enough to give you room to successfully compete.
Discipline
& Strong Motivation
Running a business has
its ups and downs. For some, the down times can last for years. In
the mean time, you have to find a way to keep yourself motivated until
your product or service catches on. Even when things are going well,
you must be able to self motivate. You need to be able to get up every
morning and get things done without a demanding boss to keep you going.
Financing
A viable idea will go
nowhere fast without the investment capital to support it. Depending
on the scope and reach of your business idea, you could need anywhere
from a few thousand dollars to several million dollars. Finding out
exactly how much you need will take some research, and perhaps some
consultation with a financial services professional. If you need over
$100K to seed your venture, you may want to contact an Angel Investor
or Venture Capital firm to obtain financing. More commonly, entrepreneurs
tap their own savings or look for loans from family and friends.
Sales
& Marketing Skills
So you have a great ideas
as well as the drive and resources to pursue it. Next question is,
how do you bring it to market? How are you going to a) reach your
customers and b) compete for their business? Sales is not for the
faint of heart. You need the confidence to get out there and sell
sell sell. Marketing should not be neglected or underestimated either.
You need to manage the message your are delivering to the market.
This process includes identifying the right place or venue to present
your message. Marketing can get expensive fast, so choose wisely when
investing in advertising and promotions.
People
Resources
Once established, the
success of your organization will also depend on your ability to reach
out to others and build relationships. Business is a fundamentally
social enterprise. The ability to work well with all types of people
and personalities -- from customers to employers and suppliers --
will be critical. Human capital professionals have an advantage in
this regard. Recruiters know how to manage and motivate others, but
most importantly, recruiters also know how to spot top talent. As
you grow your organization, the quality of people you hire will have
a direct impact on the level of success you achieve.
High
Tolerance for Risk and Change
Like riding roller coasters?
The risk and variability inherent to managing a company can deliver
a similar experience. The business environment you encounter when
you start your company is destined to change. As an entrepreneur,
you will need to continually monitor the market in order to guide
your company through the peaks and valleys. Good entrepreneurs are
constantly honing and adjusting their products to address changing
customer preferences and competitive circumstances. The phrase "innovate
or die" fully applies here.
