One of the things that characterize a successful entrepreneur is having chosen, many years ago, a business idea to which he devoted his life, capital and all his efforts. The successful businessman is no longer heard to say, "Look, I have an idea for a new business." It is unusual to hear him say that. He already has a business, so you could hear him say: "Look, this occurs to me to improve the profits of the X product" or "I was thinking over the weekend of something that can open up new markets for us." He is always dedicated to thinking about the business he is dedicated to.
I call that: the power of focus. The force that has made my most successful clients millionaires.
But for the first time, to the entrepreneur who is about to start a new business or who has already started one but is taking the first steps, it is very common to hear him say: "I had a spectacular business idea, we are going to be millionaires with that".
Work that idea in your head for a few weeks; but after weeks she forgets it and has another one.
There are three basic steps that an entrepreneur must take when he wants to become an entrepreneur. One of them is choosing the business to which you will dedicate your life, your heart, your time, your energy and your money.
I can recommend many techniques to “ choose the best business idea ”. You can do it in many ways, from many angles, from many perspectives, you can do it by spending thousands of dollars or simply the soles of your shoes.
Today I recommend 4 steps to get started. In other articles I will give you other techniques, but you will see that many ideas are discarded with these 4 steps. Or maybe the light will shine and that idea you have will end up being a revelation. At the end of the article I will give you my most important advice, which at the end also changed my life.
Step 1. Analyze the suppliers
You must be clear, first, what materials or supplies you will need to manufacture your product. If it is a restaurant, then you should know what you will need: kitchen equipment, tables, chairs, vegetables, pulses, meats, liqueurs, kitchenware, glassware, etc. If it is a metalworking, you need steel, aluminum, machinery and equipment for the factory, etc. If it is a commercial company, it is easier, because the same product that you are going to sell will be the same product that you must buy and you will sell them like this, without any transformation, the best example of this business is supermarkets.
Find out who are the suppliers of this product, the machinery, the equipment and the most important supplies.
Find out where they are, how many are they, who are the most important and the weight they have in the market. You should know if there are enough in the local market or if you should locate them abroad.
Learn about product delivery policies, minimum quantities, discount policies, the issue of credit terms, etc.
This first step, by itself, will give you an excellent idea of the business you will be getting into if you decide on this idea that is in your head.
Step 2. Analyze the competitors
It is true that the worst competition is our own incompetence. But never underestimate the competition. You will already realize that you are not the only one in this world that has great ideas to have the best business. Many entrepreneurs are doing the same. So now that you are evaluating your idea and when you already have your business, you should know what the competition is doing.
You must first identify what your competitors will really be, where they are located and how big they are. You must determine the power they have within the market in terms of purchase price and pricing.
Try to find out if there are barriers to entry for a new business, perhaps patents, urban regulation, distances, etc.
The amount of capital is almost always one of the most powerful barriers to entry.
Strive to look at the success they are having, the causes of failure of those who entered and are no longer.
You should also determine if the competition has the capacity to prevent your suppliers from selling you at a competitive price. What impact do they have on the main suppliers?
You must observe how and where they hire their workers, the policies they use to keep their staff within the company. Staff turnover in the most important competitors.
Step 3. Analyze substitute products
If you offer the product you are thinking about, what other products exist in the market, not direct competition, but substitute products, different options that the client has to choose my type of business regarding the possibilities in the market. For example: if I think of a traditional restaurant, a substitute product would be fast food businesses. If I think of a beach hotel, a substitute product could be a mountain hotel or an amusement park.
Investigate where the market is moving, try to watch the trend, if customers are leaning towards substitute products you should be careful.
Step 4. Analyze the clients
The fourth step and perhaps the most important. You must know who your customers will be and understand the market niche to which they belong.
I have the obligation to tell you that you will not be successful in your business if you try to serve "everyone" and all niche markets with your product or your business. That is not possible.
You have to be very, very meticulous in determining which people or entities you plan to sell your product or services to. To be concrete is to be truly specific. You cannot simply say: "my market niche is young people from 14 to 18 years old". That does not help you will have to delve into the category. You could say: "young people from 14 to 18 years old who are in high school". Still it is not enough. So you make an effort and you say: "young people from 14 to 18 years old who are attending secondary school in private schools." It is better and you can improve it by adding if they are in rural areas or in urban areas, etc. The effort is worth it."
When you finish reading and assimilating this article, I want you to study this other one: "6 Tip to choose your niche in this link" (http://www.fundapymes.com/blog/6-consejos-para-elegir-su-nicho -of-market /)
If you are clear who exactly your clients will be, I assure you that you will have more than 50% of your guaranteed success.
Do this exercise several times. Repeat the steps two or three times to assess the idea you have. The information you get, the interviews you do, the places you visit, the people you meet and everything you will understand about that business, will give you valuable knowledge for this and other businesses you want to start.
I leave you with a piece of advice that changed my life and that has been the key to my current success and the success of my most prosperous clients.
Choose your business idea well, choose your niche well, then dedicate yourself to that the rest of your ideas with all your strength, with all your heart, with all your soul; but also enjoy along the way the true riches of life and seek to have a spectacular lifestyle, where what you have you love and enjoy.
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My wish is that you succeed and prosper.
