James and Megan are wrapping up their series about how to start a business. They’ve been talking about how to turn what you are already doing into a business and today they cover what may be considered the most challenging way to start a business.
Today’s Kryptonite: Turning an idea into a business!
Note: Idea-based business concepts include things like providing training, creating new products or inventions, building software/games, or providing services (social media, software integration, coaching/consulting, etc.). This takes more effort, but can be very rewarding. Examples include:
Why do you think your idea can be a successful business?:
- Obviously you have a passion for the idea.
- But is the idea a viable business?
- Do you have the skills to do it?
- Is there a market for it? (will people pay you enough)
- Will it still be a good idea tomorrow? Next month? Next year?
- Will you get bored with it?
- Will your passion carry it forward through difficulty?
- Is it more than just a shiny object?
- Can you stick to it long enough to launch?
- Even if it’s a good idea, it may not be a business in and of itself.
- It may simply support or help grow a bigger business concept.
- For example, podcasting.
- We’re talking about a true business idea.
What does it take to turn your idea into a business?:
- You need a plan. Think it through what you will offer and how.
- Know your market and the path to profit.
- Be clear and specific on who your audience is.
- Will a patent search or new patent be required? It won’t apply in all cases, but consider it especially for new products/inventions.
- Few people have the skills to take an idea to market all by themselves…so who is on your team?
- Basically anything we or any other business book or resource talks about in terms of creating and running a successful business. The key is to transition from pure creation of your idea and into a business mindset.
How do you transition from pure idea and into business mode?:
- Finish your planning and know the concept is viable
- Prototype and test
- Do market testing as well
- Build your team
- Once you go into business mode, go all the way
- Get the idea out of your head. Share it with others for feedback and guidance.
- Create a business plan (including marketing plans and financial projections).
- Treat it like a business and take it seriously or it’s just a hobby.