Maybe it’s a lightbulb moment, or a vision that’s been percolating in the back of your mind. You have an idea for a business. Where do you go from there?
The first steps to starting a business can be the most overwhelming. People sometimes get stuck even before they get started. That’s why it’s important to break the process down into a series of small tasks you can check off one at a time.
Here are 6 steps that can help you turn your business idea into reality.
Step #1: Determine if your business idea is viable
A viable business idea is one that provides a valuable service or product. What value would the business bring to prospective clients? Remember, your business is not about you — it’s ultimately about serving the customer. Can you help alleviate a pain point, solve a problem, complete a job, or fill a need or want? If the answer is “yes,” then it’s time to figure out the best way to do so.
Step #2: Consider your options for starting a business
Do you want to build a business from the ground up, or buy an existing business or franchise? If it’s the latter, examine the business’s profitability, reputation, and existing customer base. In either case, consider what skills you need to run the business and how you can fill in any gaps in your abilities and knowledge base.
Step #3: Look at funding options for your business
How much money will you need to start the business and where will you get the funding? Funding can come from microloans, small business loans, angel investors and even friends and family.
Step #4: Conduct primary research
Determine whether there is a market for your product or service. Initial research might include surveys, interviews, social media polls, field tests or focus groups. Consider visiting competitors online or in person and interviewing similar businesses. Next, look at information compiled by reputable outside groups such as government agencies, industry associations, colleges and universities, or business organizations.
Step #5: Identify your target market
Your target market is the group of people who may be interested in buying your product or service. Some questions to ask include:
- Who is your customer? Are they willing to pay your price?
- How often, when and where do they purchase?
- Where can you find these customers?
- What do they read, listen to or watch?
- Where do they shop for competing and non-competing products or services?
- What’s the size of your market? In other words, how many potential customers are out there?
Step #6: Know your environment
External factors — economic, cultural, and political — impact every business. It’s important to understand the environment in which you will be operating your business, including the opportunities and challenges it presents.
Zoom in to examine your specific industry. Is it growing, evolving or contracting? What technology trends could impact the future?
And, finally, know your competitors. Determine the number of existing and emerging competitors and where they are located.
Let the Zions Bank Business Resource Center assist you in getting your business off the ground with resources and tools for aspiring, new and existing business owners, from consultations to virtual classes. Services are complimentary and available to the public regardless of where you bank.
