Starting
a new business, like any venture, requires preparation. This list contains
the top ten considerations for any entrepreneur starting a new business.
Think of it as an inventory. Start with the first step and go through the
list to determine your readiness. How ready are you to get that new business
off the ground?Step 1. Inventory your strengths.
Create a list all of the assets that you plan to invest in your new business. Be specific. Money, time, knowledge, contacts, experience, ideas, inventions - any resource that you personally control that you are willing to invest.
Step 2. Define your value proposition.
Create a written statement that answers the following questions. What need does your business satisfy? How does your business addresses that need? Why would someone pay you to provide your solution? Give special attention to defining your competitive advantage and what enables you to sustain that advantage.
Step 3. Create a list of all of the assumptions supporting your value proposition.
What do you assume to be true? Jot down all key points that are critical components of your value proposition. Usually the shorter the list, the less likely it is that you will succeed.
Step 4. Obtain third party validation of your critical assumptions.
Test your proposition on a potential customer. Seek feedback from people that you trust and who have expertise in the market you plan to serve. Use this feedback to make modifications.
Step 5. Create a "definition of good".
Define your highest priorities for your business. Be specific. List the exact things you want to accomplish. Always make decisions that support your definition of good.
Step 6. Determine the resources you need to succeed.
What additional resources do you need to achieve your definition of good that are not included in your Inventory of Strengths (Step #1)? Is it money, talent, or contacts? Determine the absolute minimum requirement needed from sources outside of you.
Step 7. Write a compelling Business Summary.
In three pages, summarize your conclusions for the first six Steps listed above.
Step 8. Create a 90 second "elevator pitch."
Prepare a 90 second presentation that describes the value proposition, the business model, the targeted market, the pricing model, the deployment strategy and the return on investment.
Step 9. Reassess your strengths.
Are you convinced that you have the basis for a new business? Do you have a value proposition that the market will buy? Do you have the resources needed to make it go? List what you need that you don't have.
Step 10. Write a Business Plan.
A comprehensive business plan is the key to success. When you have completed Steps 1-9, you are ready to write one. Using a business plan format that is most appropriate to your business, write the first draft of a complete business plan.
21 Strategies for Getting Legal Clients | 10 1/2 Do's and Don'ts for Organizational Change | 10 Principles of Time Leveraged Management | 10 Principles of Marketing and Product Development | 10 Steps for a New Business | Evaluate Your Marketing Smarts | Back to Strategies and Self Assessments
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