Many people want to own their own business. However, being an entrepreneur is not easy by any stretch of the imagination. According to Inc.com, 96 percent of companies fail within the first decade. One thing you must have to succeed for the long term is a solid business plan. Here are some tips on how to design a solid business model as a first-time entrepreneur.
Research the Market
Just because you have what you think is a great idea for a business does not mean there is actual demand for the product or service you have in mind. To get a better idea of whether or not your business idea is feasible, you must perform market research to prove there is actual demand for what you want to sell.
Scope out the Competition
Just because demand exists does not mean it isn’t already being completely supplied by others that are well established in the market. Determining if your business model is feasible also includes determining whether or not too much competition for the market segment you want to cater to already exists.
Do the Math
A business model doesn’t mean only having an idea for a product. It must also exist as a mathematical formula that results in profit being produced for the company. All the costs, including things like raw materials, payroll, utilities and more, must be considered. You must determine exactly how much of your product must be sold to come out ahead.
Create a Marketing Plan
Marketing is paramount if you actually want to sell your product. Determine exactly what consumers you want to target with your products and services. This includes their age, race, background, income level, hobbies and more. You must then determine the most effective means of reaching those customers through advertising and outreach efforts. This may include digital marketing as well as more traditional marketing platforms like radio or TV spots.
Consider a Business Management Degree
Being a successful entrepreneur means having specific skills and instincts. While some people have these naturally, most do not. Consider increasing your knowledge first by obtaining a business management degree if you want to increase your chances of success. A bachelors in business management will help you gain credibility within the field as well as establishing a strong business base for your company.
Many people dream of someday becoming a business owner. However, it certainly isn’t easy. Launching a successful business requires a lot of hard work, research, planning and learning. If you make the proper effort, it is possible to make your entrepreneurial dreams a reality.