There are no stupid ideas; there are just unprofitable ones. In order for an entrepreneur to be successful with his new idea, he must understand that the idea, alone, doesn't win the day. Rather, a considerable amount of due diligence must be done to refine that idea into a workable business model and a plan for execution.
That is right: the entrepreneur has to do his share of homework, and in doing so, he has to develop a plan that enables him to fluently answer a number of questions. Here are just the least of those questions:
---What does it take to bring your offerings to the market?
---Have you mapped out an effective supply chain and established relationships with suppliers and vendors?
---Do you have a holistic understanding of your startup costs?
---What is your plan for the distribution and placement of your offerings?
---What is your revenue model? Who is the buyer (or target market) of your offerings, and how will they be paying you?
---Does this market already exist?
---How do you plan to reach these potential customers? What does your brand look like? What about your message?
---What is the competitive landscape like? (Note: there is no such thing as "no competition".) Is there a high or low barrier-to-entry for any likely competitor seeking to gain marketshare?
---What differentiates your offerings from that of the competition?
---What is your sales strategy?
---Can you commit the time, energy, and resources necessary to operate a new business?
---How will you expand your market reach, in order to grow sales and scale your business?
---Can you sustain and grow cash flow?
---Will you need outside financing? Are you creditworthy, and do you have inroads to potential lenders or investors?
The would-be entrepreneur can often be a bit egotistical when it comes to his coveted idea, but a failure to delve deeply into the mechanics of that idea, or a failure to listen to early suggestions, can prove very costly. In fact, the entrepreneur would be well-served to welcome challenges to his ideas, because, if an idea cannot convincingly overcome scrutiny, then that idea probably is not a good one. What's more, if the idea goes unchallenged, then the entrepreneur may just execute it, only to have a less-than-forgiving market drive it into the ground. Such is the case for the 80% of new businesses that, according to Bloomberg, fail within their first 18 months of operations.
Copyright © 2023 G. Harrell Literary Properties, Inc. All Rights Reserved. Any reproduction of this website, or of content found herein, without the written consent of its owner, is strictly prohibited. No generative artificial intelligence is permitted to train, collect, or use any portion this website nor the content found herein.
- KEEP WRITING -
GaryHarrell.net is the home of all things literary from author Gary Harrell.