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Thursday, September 6, 2012

Developing and Testing Your Business Idea in 3 Steps

So you decided that you want to go into business for yourself. You have an idea and you think it will be successful. Now you need to develop your idea on a small scale and test it to see how valid your assumptions are before you make a large investment in time as well as money.

Today we’ll look at some steps you can take to develop and test your idea.

Develop your idea in 3 steps

Step #1 – Gather materials, information, equipment, samples etc.

You need to gather together everything needed to complete a sample of your idea. If you are a writer, you need samples of your work to show your writing skills. If you are into crafts, you need to gather your materials/supplies together. If you intend to open a store, you’ll need to find your supplier for the supplies you need. But most importantly, you need to be knowledgeable in your field of choice.

Step #2 – Create a systematic order

Put your materials, information or use your equipment in a systematic order to create a final product. You need to present your product in a package form that’s appealing to your potential customers/clients/friends. So how would you package your writing and position yourself in the writer’s market? Are you a fiction writer or inspirational writer? How could package your crafts? i.e. are you creative in making ladies hats? What type of hats would they be – casual hats or really fancy hats? How does your service or product differ from others selling similar product or services?

Step #3 – Price your product or service

Now it’s time to price your product or service. How much is your product or service worth? You need to take into account how much it costs for you to acquire the materials or equipment plus your time. In today’s market pricing of materials can fluctuate. You may need to change your pricing over time based on supply and demand.

Testing your ideas in 3 steps

Step #1 – Do your own research

Are there other businesses in your niche that are successful? How many other people are doing what you do? For example, as a writer if you were to go on Amazon you can research the bestselling books in your category. This is will give you an indicator of what’s selling on the market. Do you think other authors would be writing on this topic if it was not a hot topic? Look at what other businesses are doing and see what’s lacking in their services or products. What can you implement into your services or add to your products that would fill this void?

Step #2 – Use other people’s statistics

Many companies have invested thousands of dollars in research and provide statistics of their research as well. Statistics in your niche can uncover very important information for the structuring and positioning of your business. It can also show you the demand for your services as well as decline over the years for your type of service or product.

Step #3 – Create your own surveys

After you’ve created your first sample, talk to your potential customers and friends. Let them tell you how they feel about your product or service. Here’s an opportunities to prepare questions ahead of time like, “Would you use this product/service? How often would you use it? What is it worth to you and how much would you spend for it? Or how much would you spend to gain this knowledge? Surveys can actually open the door for better communication between you and your customer as well as understand their deeper needs and therefore position your product/service to satisfy those needs.

Want help developing and testing your business idea, deciding if starting a business is right for you or need help choosing a business or career? Why not schedule a Free 30-Minute No Obligation Self-Empowerment Session with me. You’ll gain clarity and have a better perspective on things.

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