Once you have a Business Idea what’s Next?

Many people are always in the speed of starting a business with any idea at their disposal. This is one of the things that makes a business not grow to its full potential and eventually collapse. This blog post is important in noting some of the essential questions that when you answer them can allow you to start a business or drop an idea and focus on another ideas.
It is henceforth important for a real Entrepreneur to identify his/her idea in Business and take time to concentrate in building it.

Related articles: successful business ideas you can launch from your living room

Before you jump in the business consider the following questions.

Many economist have always dwelt in trying to answer the question of business failure. Meaning they concentrate on what makes a business stand and what makes it fail. The following are some of the questions that a new entrant in the business field should be focused on answering.

How big is the threat of new entrants?
If it was easy for you to get into the industry, it’ll be easy for your competitors as well.

How big is the threat of substitute products or services?
Beware of cheaper, faster, or more entrenched substitutes for what you make.

How much bargaining power do your customers have on price?
The bigger they are, the more they can squeeze you on price, or even force you to give away product as a “loss leader” to get in the door.

How much bargaining power do your suppliers have on price?
The fewer the suppliers of what you need, the more you’ll pay.

How many powerful competitors operate in your space?
Are they civil or warlike? The more vicious the competitors, the more money it will cost to compete.

This questions once answered successfully you will know if it is profitable to enter into a business or you will be faced with hostile environment.

Share widely!

Advertisements

2 thoughts on “Once you have a Business Idea what’s Next?”

  1. Good article. As I always say before you can start implementing your business idea ,first you have to research whether it will solve any problem.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Great Thinkers

%d bloggers like this: