Owning a business is the American dream. Having a business idea is the first step. But the process of turning your idea into a viable business can seem overwhelming.
But don’t give up. Here are 10 tips for turning your dream business idea into a reality.
1. Articulate your vision
Look beyond your business idea and try to flesh out what it is your looking to achieve. Ask yourself a few probing questions, such as:
- What problems does my business idea solve?
- Who is my target audience and what are their needs?
- Do they care enough to spend money on what I have to offer?
- What differentiates my product or service from my competitors?
The answers to these questions can help inform your business value proposition, how you intend to stand out, as well as potential hurdles you must address.
2. Engage in market research
Further articulate your business idea by researching your market and competitors.
- Consider how they brand their business and products, how they engage customers online and off, and what their customers say about them.
- Determine what they are doing well and not so well, and where there might be an opportunity for you to grab market share.
- Talk to potential customers about their motivations, needs, preferences, and how they use similar products or services today.
- Consult other businesses in your local area for on-the-ground input on how they think your business idea might shape out.
Save the information you glean because you’ll need it when you write your business plan.
3. Gain skills and experience
Find ways to improve or supplement your skills gap. Business owners must wear many hats and it’s hard to do everything yourself. For example, if you’re not tech-savvy, consider taking a course to learn basic IT skills or website, social media, or email marketing.
If you are completely new to your chosen industry, gain some work experience or shadow a mentor.
4. Develop an elevator pitch
Your elevator pitch helps you quickly communicate what problem your business idea solves, how it solves it, and why it's different.
Practice makes perfect. You should be able to convey your pitch in 30 seconds or less, literally the time it takes to enter and exit an elevator. If you want someone to learn more about your company - whether an investor, a partner, a vendor, or a potential customer – your pitch can help spark their interest.
5. Become comfortable with networking
Look for in-person and online networking opportunities, such as community-centered small business groups or at a tradeshow or industry event. Combine this with online networking using LinkedIn or industry meetups.
Before you network, research the forum/event, who is in attendance/speaking, and come prepared to discuss relevant topics. Be sure to follow-up via email or messaging and keep the dialog going. You might need their support or a favor someday.
6. Don’t wing it
A business plan is an essential part of starting and managing a business. It helps you know where you want to go and how you’ll get there. Moreover, if you need financing from a bank or investor, a business plan is a pre-requisite.
Check out these tips for building a business plan:
- Writing your business plan
- Creating action plans: Operations and management
- Marketing plan component of your business plan
7. Have clear and measurable goals
Many entrepreneurs are motivated by a desire to make a difference in the world or improve their own lives by being their own boss. These motivations are important, but don’t forget to set tangible, measurable goals for your business.
Your goals should be both short- and long-term. For example, think about what you must accomplish each day to move your business forward. Then determine how you will measure success each month, quarter, or a year from now. These benchmarks can help you keep track of progress and inform any necessary course corrections.
8. Get feedback and support
Starting a business doesn’t mean going it alone. There are any number of resources and organizations that can help you every step of the way, including mentors, freelancers, investors, business peers (both startups and established businesses), co-founders, and more. Learn from their experiences and mistakes.
Take advice from those who share your values and vision and can complement your skills. Friends and family can also help provide much-needed support and feedback.
9. Don’t ignore the financial realities
Starting a business requires financial investment. The amount varies by business size, scale, and location. Typically, a home-based business is a more cost-effective way to get started. However, if you have to purchase or lease property, equipment, or land, or hire employees from day one, your costs will be higher.
Many new business owners rely on savings, borrow funds from family, or secure a bank or small business loan – or any combination of these. Whichever path you choose, prioritize your investments, and take a phased approach, focusing on one thing at a time.
10. Get familiar with business regulations
Research federal, state, and local regulations that could impact your business, such as zoning laws, business licenses and permits, business entity and name registration requirements, tax obligations, intellectual property, labor laws, and more.
For more information, see:
Just start somewhere
When you have a dream business idea, one of the biggest challenges is going for it.
Many aspiring entrepreneurs talk about their dreams or seek advice about how to make them real, but never get past the starting line.
If you’ve ever thought about creating your dream business, what are you waiting for? Have faith in your own strengths and abilities. It’s risky, but business is all about taking risks. If things don’t work out, then you’ve learned something new and can apply that wisdom to something else. Good luck.
