If you already know how to detect and evaluate business ideas , it’s time to move on.
The path by which one decides whether or not to create a company can be diverse, but in the end there is always an entrepreneur with an idea, a lot of desire and, normally, little else.
One of the main fears of that entrepreneur or entrepreneur is knowing if her idea is good or not, if it will be viable as a business or not. Here too, experts help us by indicating the success and failure factors of new companies .
Without being a complete test of ideas, it can be very useful to reflect on the following factors:
Failure Factors
Table of Contents
.Market ignorance
.Inadequate product or service
.Marketing mistakes
.Lack of knowledge of the fundamentals of running a business
.Lack of Planning
Market Ignorance
It is absurd to embark on an adventure in a market that we do not know. But it is also dangerous to believe that we know a market by the mere fact of having worked in it for several years. Every effort must be made to understand what market our business is in and how it works .
Inadequate Product Or Service
It is very likely that you fall in love with your product or service and do not understand what the market is asking for. If the product does not meet what the market requires, the product is inadequate. We must continually ask ourselves if the product we offer meets the expectations of customers .
Marketing Mistakes
Not all entrepreneurs are good sales people, nor do they know the necessary techniques for the correct marketing of their product. It is convenient to be very attentive to this aspect, because an excellent business without clients is useless.
Lack Of Knowledge Of The Fundamentals Of Running A Business
Although it is not necessary to do an MBA to run a business, it is good to know the management fundamentals of all areas of the business, at least to get along with the experts we turn to for help at some point.
Lack Of Planning
Setting up a company is not going on a picnic ; it is not enough to load all the belongings in the car and hope that the weather is good. In order to survive today in the business world, you have to be clear about where you want to go and how you are going to get there, regardless of whether or not it is achieved in the end as you had planned.
Success Factors
.Clarity of objectives
.Business Knowledge
.Differentiation
.Market orientation
.Planning
Clarity Of Objectives
Being clear about what the business is dedicated to and where it wants to go with it is essential for the success of a new company. No matter how ambitious or modest the goals are, the important thing is that you have them well defined and you work to meet them.
Business Knowledge
You’re going to run into enough problems getting started to have to learn the secrets of another business along the way. Going into an unknown business and trying to develop a company at the same time is a risky bet that does not usually guarantee the success of the adventure.
Differentiation
Setting up a business to do the same thing that others do in the same way is the best way to sink into mediocrity. It is necessary to tend from the first moment to be different from the rest of the competitors .
Market Orientation
A new entrepreneur – and an old one too – must constantly keep their eyes wide open to detect needs or changes in the market in which they work. Living with your back to the market is simply illogical and commercial suicide.
Planning
Business planning is important, and not so much for having plans that later turn out to be more or less real and exact, but for the entire systematic process of reflection on the business that is carried out.
Risks
Everyone agrees that starting a new business involves assuming certain risks. However, not everyone is clear about what those risks are. Below is a list of risk groups to help you think about the business you have in mind:
1. Commercial Risks
There may not be enough of a market to sustain that business, or the market may not even exist yet, or it may be in decline.
2. Technological Risks
It is likely that the product or service cannot be “manufactured” in the expected conditions, at the desired rate, or with the desired quality at the promised price, etc.
3. Financial Risks
It is likely that you do not have enough money to start a business , or to grow at the pace set by the market, or to overcome a period of recession, etc.
4. Social Risks
There is always the possibility that one is not suitable for an entrepreneur or that you are not willing to make certain sacrifices, or that you are not able to build a good work team, or that your family does not understand why you dedicate so many hours to the business, etc.
5. Legal Risks
It is possible that it is not legal to make that product, or that the permits come too late, or that the idea is patented, or that the idea is stolen, etc.
The Business Plan (Business Plan)
It is beginning to be evident that creating a company is not just a matter of a lot of energy and desire to work. A planning process is required, acquiring more or less general knowledge, and above all reflecting on what you are doing and why.
Over time, experts in business creation have been developing the concept of Business Plan , Business Plan or Business Plan. It is a more or less formal document, where the entrepreneur defines and details all the important aspects of his business.
The Business Plan includes the fundamental decisions that define the company. It usually has, among others, the following chapters or sections, which try to solve the risks that we have seen before:
.Definition of the product or service
.Plan de Marketing
.Operations Plan
.Financial plan
.Organization Plan
.Legal aspects
Conclusions
Each entrepreneur must adapt the Business Plan concept to their own way of working.
In fact, although the usefulness of the Business Plan consists in facilitating a means of discussion about the business for partners, banks, institutions, etc. The fundamental objective of writing a Business Plan is for the entrepreneur to reflect in depth on the business where he is going to spend a good part of his time and money.
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