If I have a new idea about a new business, what is my first step need to do? Writing a business model?
There are too many idea in the world. It is hard to find something new which no one conjectures. But if I have one, how can I build up my dream?
- 1 decade agoFavorite Answer
Yes you need to develop a business model this is very important so that you know where you are going and if your proposed business will be viable. Many businesses go broke in the first couple of years often due to lack of research and planning. In summary this is what you need to do.
- FIRST you need to research the market to see if there is a demand or need for your product or service. This is vital if you want to succeed if no on wants your product or service then you are wasting your time and money. DONT JUST LISTEN TO YOUR FRIENDS.
- Work out what your set up costs will be.
- Work out how much it will cost you per unit to produce the product or provide the service (wages, materials etc). This is known as 'break even point'. There are often hidden costs envolved here so thorough research is necessary this is another area that can bring your business down.
- Work out what the markup on your product or service needs to be, you want to make a profit.
- Don't forget to consider expenses such as, advertising, phone, electricity, vehicle & site leases, vehicle running costs, wages and associated costs, insurances, bank fees, taxes etc etc etc. Whatever is relevant to your business and country, when working out your markup.
- When you have worked out how much you need to sell your product or service for ask the question 'Realistically, will people pay that much?' If not, take another look at the whole thing.
If from this you decide that your business is viable then you can keep going with your business model.
It sounds like a lot of work but it will save you a lot of stress and grief in the long run. I'm from Australia, we have advisory services for small business designed to help, I don't know where you are from but I'm sure you can find similar help.
Oh yes, very important GET A GOOD ACCOUNTANT AND TAKE THEIR ADVICE.
Good luck!Source(s): I'm a Business Management Teacher
- cherryLv 41 decade ago
all the advice in the world will eventually lead you to one place....do it or not do it....I have been an entreprenuer for 25 years and my motto is "just do it" 99.9% of people will tell you all they want to do and all their ideas and if you come back in five years they are in the same exact spot saying the same exact thing....
- 1 decade ago
here iam hussain i want to help u . iam serious about it .please let me know exactly what's your business policy i also have many ideas just waiting to start them one by one. iam from india.iam 18 years old. and i am doing computer engg. from mumbai city.it would be great together working . have faith that i have good intentions.Source(s): personal experience