Are you a creative idea you’d like to share? Do you plan to start your own business? Are you putting your money into someone else’s idea?
If you answered “yes” to any of these questions, not yet do it!
The process of launching or investing at the beginning of a new venture could be an emotional experience filled with excitement and anticipation. It is essential to maintain a calm mind and approach the procedure with the highest degree of objectivity.
To assist you, I’ve compiled the complete checklist of questions you have to address before you begin to think about putting together an overall business plan. This will allow you to ensure that no missed aspect causes you to make a mistake in moving ahead or not. You must ensure that you do not miss any step of the process and finish the process with a truthful yes or no decision that is based on the results.
It will be difficult to, if not impossible, answer specific questions. It is crucial to know the validity of each answer as well as the potential risk each unanswered question carries. Be prepared by studying scenarios and the various possibilities for responses.
Make a brief note to each question by which you can formalize your thinking. It is also possible to think of every question within the SWOT analysis context, identifying each as an area of Strength, Weakness and Opportunity, or Threat.
It’s the Dos and Dos and Don’ts you should be aware of:
Do this constantly
Be thorough, thoroughly analyze. Know the needs, competition and constraints, then adapt and distinguish.
Keep an eye out constantly for the error that causes this mistake.
Many questions aren’t answered or aren’t clear enough. You should be aware of the danger of not having them.
Don’t Do This
Do not follow the traditional approach: “I have an idea. I’m thinking of ways to get it out onto the channel or to the customer”.
Do not focus on the functions of the product. Instead, concentrate on the purpose you’re trying to satisfy.
Be careful not to be enticed by the thought of skipping the entire study.
The most common mistake is thinking that everyone in the market is exactly like you. If you are satisfied with the product, everyone else will too.
It is pretty common to misinterpret the merits of a great idea with a profitable business opportunity, but they’re not exactly the same.
Thinking “We are not competing” is just for young entrepreneurs.
Do not get caught up in the first mover’s advantage. Most of the time, funds favour second-movers since the notion is confirmed.
The questions you must answer are:
Product or Service
Can you describe your business concept in less than 25 words?
Can the idea be scalable? Are you limited to your time or some other thing?
Does your offer, later on, alter or adapt?
The risk that you will not be able to create or manufacture the product?
Market or Customer
Are you able to conduct formal market analysis, or just informal? (Interviews, observations, focus groups, surveys, market experiments, etc.)
Who is the client? What exactly is he identified? Location, profile, etc.?
What issue are you working on? What are the reasons why the client should buy? Would he like to?
Risks in commercial transactions, but no will to purchase?
What is the size of the market? Is it shrinking or growing?
How much is it absorbed into the business? What share of it can you earn quick? Later?
What price would he be willing to pay? What is the basis? What is the significance of it?
How cost-conscious is your client?
The risk of a change of consumer behaviour?
What can a market be modified? Do you have the ability to attack different levels of the value chain?
Industry
Do you have to do formal analysis, or is it only informal?
Are you seeing it flourish? Shrinking?
Do the suppliers have electricity? Are there any risks of supply shortages? Price change?
Barriers to entry
. Contractual? What is a trademark or patent?
. Time to lead in tech development? Innovation?
. Management? People?
. Location?
. What are the regulations and the government?
. Other obstacles?
Are barriers easily changed?
Do you have relatives that are in place?
. Customers?
. Suppliers?
. Partners? Talent? Investors?
Industry experience? Yours? Another management?
The risk of regulatory or other government-related changes or interventions?
Obsolescence risk in technology?
Competition
Do you have the ability to conduct a formal analysis of competition? If not, then what kind of informal analysis could you achieve? Do you think it’s good?
Who else is attempting to disrupt the market? How? Successfully?
What is your competitor’s pricing strategy?
What is the most similar to the target market that is similar to your product? Are you a first mover? Second? What’s more?
Strategic advantages or differentiators. Visible to consumers, or just in your head? Sustainable? Provable, reliable and trustworthy?
. Function? Design? Quality? Uniqueness? Innovation?
. Delivery? Channel? Availability? Location?
. Cost? Marketing? Sales?
. The ignorance of buyers?
. Customer service?
. Other?
Are you making the most of a specific opportunity, situation, or advantage?
How fast will competitors catch up?
Channel
Which options are available to you?
Which is the best? Why?
If the first option doesn’t work, Does it make sense to consider other alternatives?
Which channels do your prospective customers like?
Which are your competitors using?
How much integration do these channels have?
Will the channel change in line in response to customer preferences or technological advances?
Risque of having no access to the proper channel or to the right
Sales and Advertising
How can you reach out to customers?
How can you keep customers? Do you think it is important?
Define the sales force that is required?
Does a salesperson with ordinary capabilities be able to sell it?
Do you require advertising? What kind? What is the cost? Do you consider it to be important?
Economics
What is the most straightforward way to explain the fundamental economics behind the concept? (Costs, sales, margins, required capital, ROI, etc.)
Do we see economies of size? Are they crucial?
Receivables from accounts? Does it have the potential to become a problem?
What will you do to finance your initial purchase? Later?
Management
Do you have or are you able to find the right management team?
Do our leadership, management or organizational skills make a difference? What is the impact?
How valuable is intellectual property?
Is it logical to complete this by yourself? It usually doesn’t.
Other
Validation:
. What speed can you determine whether your business is viable or not?
. Are you able to identify the variables that you need to know the data? How fast can data flow?
. Do you require the development of your product to be aware? Dangerous!
. Do you require a lengthy selling procedure or a lot of trials to find out? Dangerous!
Are you able to diversify? It’s not easy to start a new business. However, it can be accomplished?
Tell me the most significant disadvantage or threat (fatal fault) of your idea? What is the one that could cause it to fail?
List the flaws that appear to be fatal that are fixable.
Does the concept fit with your goals for your life? Workload?
Do you feel strongly about the concept? Enjoyable? Do you want to do it to earn cash?
Do you have an upside to the most likely scenario?
Do you have a negative or worst-case scenario?