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Finding the Right Business: 5 Things to Consider When You Have a Product Idea

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business ideas
Image Credit: Twenty20.com

There is a massive difference between having a product idea and setting up a business. First and foremost, you need funds to kickstart the operations. Even if you are able to convince investors, there’s still a long list of tasks that you need to accomplish in order to establish a business, so how do know if the business is right for the specific product (or service) you have come up with?

There’s no particular tool to pinpoint the right business for a particular product (or service) idea, however, you can evaluate a few significant elements to learn if the business makes sense to the market it is targeting.

Here are the five areas that you need to consider while deciding the right business for your idea:

1. Acknowledge your strengths

Before you can even pitch your idea to the investors, you need to acknowledge the strengths you have. The success of a business often banks on the strengths of its owner. So it will be better if you choose a business that reflects the greatest strengths you possess.

Businesses often push people to move out of their comfort zone and grow individual skills, but if it’s in a totally different domain, it may not be wise to pursue that option in the first place.

2. See if your idea adds any value to the consumer

Your product (or service) idea may sound amazing to you, but that does not mean everyone in the market will like it instantly. You need to evaluate whether the product or service you are planning to market has any value to the consumers or not. If yes, then you can set up your business model after that. If it does not, it will be better if you start working on a separate idea.

It is better to face the facts in the earlier stages than setting up a business and finding out that consumers have rejected the product entirely. You can conduct a survey or even look at the latest trends to learn what the people need and how the product (or service) of yours can fit into their lives.

“If people believe they share values with a company, they will stay loyal to the brand.”Howard Schultz

3. Pick the right market

If your product is a premium sports car, but 95 percent of the market consists of daily wager, perhaps the idea won’t bring you any success. Due to this, choosing the right market becomes a necessity for the business. Analyze your product idea and figure out who are the potential consumers for the product.

It’s not possible to set up a business if its target market is not defined. If you want to establish yourself as a successful entrepreneur, you must identify the market and tailor your product as per the requirements. In most cases, it is the market that guides the operations of a particular business.

4. Identify your financial limitations

You need to be very mindful of the finances while setting up a business. A study conducted by Harvard Business School suggests that 75 percent of venture-backed startups fail. It clearly suggests that even if you have funds, the chances of succeeding are still very slim. In fact, one of the major reasons behind the failure of the startups is their lack of financial management skills.

Once you develop the product (or service) idea, it is better to determine the cost of setting up the business, when you can start turning a profit and how much funds will be enough to run the business for at least a year (before the next round of funding). The chances of landing a venture capitalist are quite low, so it will be wiser to start a business within your financial abilities.

“In every success story, you will find someone who has made a courageous decision.” – Peter F. Drucker

5. Look at the bigger picture

If you are looking for the right business, you set up something that serves a long-term trend, not a short-lived gimmick. The fidget spinners, which were quite popular in 2017, have already lost their charm. Similarly, if your business is based on such things, it may not be the wisest thing to do.

Your aim should be to establish a long-term business, which will be relevant even after 5 years. The challenge is to look beyond all the hypes and gimmicks that are unnecessarily hogging all the attention for the time being. However, if your product or service idea has the potential to stay in the market for long, it will be better if you build a business that can capitalize on that.

Starting your own business from scratch is certainly not child’s play, and one wrong decision can jeopardize all the planning that you have done for your product. Take your time to pick the right business as you can start as a small business in the beginning before expanding. You will be glad to know that more than half of the businesses in the US fall under the category of small business.

Have you started your own side-hustle or business? Let us know in the comments below!

Image courtesy of Twenty20.com

Jedda Cain, an essay writer, is working with Essay Assignment Help since one year as a senior academic counsellor. She has developed excellent research and writing skills in these years and become capable of writing top-quality essays on any complex topic within the given time. Many students in Australia prefer her to be their academic advisor. Apart from that, she is passionate about penning blogs for variety of service sectors like education, health care, business, management and lots more.

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Entrepreneurs

The Many Faces of Benjamin Franklin: A Masterclass in Versatile Leadership

Versatile leadership involves the ability to adapt communication as per the needs of others.

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benjamin franklin leadership

Versatile leadership involves the ability to adapt communication as per the needs of others.  It is different from situational leadership where the leaders have to adopt the strategies as per the situation.   (more…)

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Entrepreneurs

10 Lucrative Buy and Sell Businesses to Start in 2024

The buy-and-sell business model provides opportunities across many niches

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Businesses to start in 2024

In the dynamic landscape of 2024, starting a business that capitalizes on buy-and-sell models can be incredibly lucrative. This article explores ten different models that entrepreneurs can consider. These ventures range from real estate flipping to trading in domains and luxury items, providing a broad spectrum of opportunities regardless of your initial capital or interest area.

1. Car Flipping

Flipping cars can be a very lucrative business venture for an individual with business acumen, an eye for value, and mechanically adept at cars. It involves buying under-priced cars, restoring, and selling them for a profit. For deeper insights and opportunities in this market, refer to sca.auction.

2. Real Estate Flipping

Flipping real estate—be it houses, condos, or even commercial properties—remains pretty solid business, especially in markets where real estate values are on the way up. Investors buy properties relatively low, do rehab or renovation, then sell at a profit.

The success of the area is endowed with a huge potential spotlight, the ability to juggle various elements such as local real estate market knowledge, and efficient management of renovations.

3. Vintage E-commerce

With the advent of technology, it became easy to sell vintage or retro items over the online selling platform. Be it clothes, furniture, or even collectibles, consumers these days prefer something unique that is eco-friendly and which may have a nostalgia quotient in it. Hence, it brings the opportunity to open an e-commerce shop effectively.

4. Domain Flipping

If you have the skill to predict catchy phrases or business names that would be popular in the future, then buying and selling domain names would be a very profitable business. Register prices are available to purchase domains, which later can be sold at high prices to interested parties or businesses that wish to get an early online identity.

5. Luxury Items

One of the most promising buy-and-sell businesses is the luxury market, and what makes it very attractive is its less sensitivity towards economic downturns. Some of the common items in the luxury market include high-end watches, jewelry, and art, rare cars, all with high yields. Most times, items do appreciate, especially when they are limited editions.

6. Sports Memorabilia

While the sports memorabilia trading business can at times seem lucrative, especially when one focuses on big personae or big events, authenticity and rarity can definitely help items fetch top dollar. Provenance and limited supply both go towards inflating their values.

7. Sneaker Reselling

In recent years, the sneaker resale market has exploded, fueled by a commodity of scarce releases and athletic brand collaborations with a list of celebrities. Today, with operations such as StockX and GOAT, it’s really that easy to break into the worldwide market. It’s pretty easy to find your buyers and make a very good profit if you’re targeting the right trend and releases.

8. Book Flipping

Flipping rare and first editions can become a really meaningful, and yes, one more profitable, business for a book lover. Sometimes the signed ones, rare manuscripts, or those early editions of famous novels could sell for thousands of dollars, usually done by collectors or academic institutions.

9. Furniture Upcycling

Upcycling furniture consists of restoring and using second-hand furniture to sell it at a higher price. For the environmentally aware consumer, this business model has great appeal. It could be pretty profitable if done with good taste and talent in design and restoration.

10. Electronics Flipping

Smartphones, tablets, and laptops resell at values significantly high; hence, business ensues. Buy, refurbish, and sell in better condition to appeal to budget-minded consumers looking for technology at more affordable price points. 

Overall, The buy-and-sell business model provides opportunities across many niches. Be it real estate flipping or vintage item upcycling, you can succeed in both models with market understanding and trend application. That, with careful planning and strategic investment, will throw huge financial returns for these business models in 2024.

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Entrepreneurs

How Your Business Can Outmaneuver Your Competitors by 85%

Did you know that companies that master big data can outmaneuver competitors by 85% in sales

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big data strategy

Did you know that companies that master big data can outmaneuver competitors by 85% in sales and more than 25% in gross margins? Sounds inspiring, right? But the thing is that data alone isn’t enough. Rather, it’s the strategy behind it that unlocks these enviable boosts. So, this article explores how to make the most out of your big data and build a strategy that’s functional and competitive. (more…)

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Entrepreneurs

Most Entrepreneurs Fail to Do This and It’s Killing Their Success

Celebrating progress also provides entrepreneurs with the psychological sustenance needed to endure the marathon of building a business

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celebrate your milestones

The journey from a mere concept to a tangible reality is one of the most exhilarating yet challenging paths an entrepreneur can navigate. This odyssey is punctuated by milestones that stand as testaments to perseverance, innovation, and relentless hard work.  (more…)

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