Is Your Idea
If you are considering a new business
venture, it is likely that you have a product or service in mind.
Having an idea in mind is just the beginning. You must first
determine if your idea is feasible. Many people have tried to start
their business venture with ideas that are just not realistic. Even
though they push as hard as they can to see the project through,
they only end up failing. Knowing your product or service is
practical, reasonable and doable will ensure a successful ending.
Is Your Product In
Now you have determined your product
or service is feasible, you must determine if it is marketable. What
this basically means is it something in high demand. Do you have
consumers who are already interested in making an investment in your
business? If not, you will need to find ways to reach out to
consumers. One way is to run independent market research. The idea
is to find out if consumers are already buying similar products.
Once you determine your product is in
demand, you will need to find ways to encourage consumers to buy it.
For example, when August Home released its first smart lock, it was
one of the first to hit the market. Of course, it didn't take long
for Yale and Kwikset, two top lock manufacturers, to come out with
their own smart lock versions. With a little enticement, Yale and
Kwikset were able to encourage consumers to invest in their smart
locks instead of the August Smart Lock. If you can do the same, your
product will be a big hit.
Will Your Product Be
Now that you have determined that your
product or service is in high demand, you must also find out if it
will be profitable. The only way to find the answer to this question
is to run the numbers. Your product or service must produce enough
profit to cover your operating expenses and leave you with a little
extra to retain for profit.
If necessary, you can turn to the
experts at PokiesHQ
for help. Most successful entrepreneurs will go through the process
with you. They can help you breakdown the numbers to determine if
your product or service is going to be profitable.
Return On Investment
It isn't always enough to prove that
your business venture will be profitable. Sometimes it is more about
the return on investment than the actual profit. If your product or
service cannot deliver enough profit to meet or exceed the return on
investment that most investors need, your venture will not be a
successful one. When it comes to investors, they have expectations
of what an investment, especially risky ones, should deliver.
Investors should be able to look at
your venture plan and determine the rate of return. Once this is
figured out, the prospective investor will compare the return with
Can Your Management
No investor is going to invest in a
new business venture without knowing the facts. What they are
looking for is a business venture created by a firm with a
successful management team, which consists of the president, founder
vice president or lieutenant. Your venture plan must prove to
potential investors that your management team can successfully run
Even if you believe your new business
venture plan is solid, it will be rendered useless if your
management team is unable to execute it properly. So, no investor is
going to invest in such a venture because the risks are just too
Your business venture plan must speak
volumes about your product or service, return on investment and
management team. If you create a good plan, it will encourage
prospective investors to put money into your idea.