Most of the posts on She Does This concern entrepreneurial techniques or inspiration from women who have already ‘made it’ in business. But it can be hard to turn your idea or aspiration into a profitable business model. Maybe you’ve had ideas for making money in the past, but you’ve never taken the leap to turn an idea into your own business. Maybe you’re ready for a solo business venture, or maybe you’ve got the backing of a few colleagues and friends.
Whatever the case, here’s some advice on turning your idea into a profitable business.
Make a plan of action for the first year.
Most small businesses fail not because they have bad ideas or a lack of motivation but because they fail to plan properly. A great idea is only one aspect of a great business. You need to make a plan of action to turn your money-making concept into a model that will work in the real world. You need to make some projections for growth and a timeline for your business. Obviously, the business plan will change as time passes (not everything can be predicted), but you need some idea of your direction.
A plan of action is crucial when it comes to your finances. Many small business owners spend money unwisely during the first couple of years, and that’s often what ruins companies with great potential.
Calculate the costs of the resources and the employees you’ll need to get your business off the ground.
Figure out how much money you’ll need. You might even want to look into startup business loans because you can’t completely rely on your sales predictions for the first year. It’s important to have a good financial foundation during the early days of your business until you’ve actually built a steady client base.
Think about the consumer.
You have to accept that your idea might not be fully formed yet. If you want to create a profitable business then you need to think about the reality of the marketplace. Rather than pushing an innovative idea on the market for the sake of being innovative, you need to think about how your business idea is going to solve an existing problem. Consumers buy goods and services that help them in life, whether they see the product as a luxury or a necessity. You need to fill a gap in the market, and that means you need to know what the consumer wants. What are the pain points in your field of work? What are problems that your competitors have yet to solve? If you can be the answer to the consumer’s problem then you’ll be on your way to creating a profitable business model.
Keep updating the plan.
As mentioned earlier, your plan is going to change. In fact, it’s essential that your business plan changes. The market is going to change around you, so your company needs to continuously find ways to stay ahead. Of course, this means that your ideas will need to evolve and change. You might cherish the initial idea for your business, but you need to be brave enough to know when it’s time to try different things. You need to be fearless to make it in the business world. Make sure you talk to clients on social media. Invite them to tell you what they think of your company and the industry as a whole. The better you know your customers, the better an idea you’ll have of the changes that need to be made to your business plan.