A lot of people who dream of having their own business and not being pushed around by their boss anymore don’t have the courage to try something else. Surely, you need time and money to invest in a new business idea you have. And who has got the time to start their own business if you have to work all day long to pay your bills? Well, here comes the major advantage of an online business.
The good thing about starting an online business is that you don’t necessarily need a lot of money to do so. That is, if you don’t sell physical goods but rather services you’re good at. For us it’s web design and web development. Choose something that you not only can do but love to do. Because you will spend a lot of time doing it. With that in mind, you have an online business with almost no financial risk. You only have to devote a little bit of your valuable spare time. If you don’t have a lot of that, then maybe it takes you a few more weeks to get started. But that doesn’t matter.
The important thing is that you’re fully behind your idea and have enough dedication, motivation, and most of all, patience, because it can be a little bit tricky at times. Above all, you have to learn A LOT of new things – but that can be fun! Still, there may be times when you just want to stop and crawl back into your old but comfy chair in your office. There you get paid for doing something at least. But if you get over the fact that you first need to invest time before you get something out of it, you’re back on track. So, let’s get started!
Your Business Idea
Everything starts with an idea. But is it really a business idea? For that you have to check if your idea can make profit. So take your time when searching for and examining an idea. Most of the time, new businesses aren’t based on brand-new ideas. Therefore, you don’t have to be very creative and innovative. The most important thing for an idea to succeed is planning and implementation. If you don’t have an idea but a little bit of capital, you could always consider franchising.
The Ansoff Matrix
In search for an idea, mindmapping and brainstorming can always be useful. It can help to get new ideas and structure them. In order to get good ideas, you have to ask yourself: what does the customer want? According to the Ansoff Matrix, there are four strategies on which your idea development can be based. The matrix takes existing and new products and markets under account.
First of all, there’s market penetration. You start with an already existing or similar product, but try to get customers by better marketing, for example. So always check out your competition in order to do it better! Another strategy is product development. In this strategy, you develop a brand-new product that doesn’t exist on the market yet. Another strategy is market development where you take an existing product to a new market, e.g. to a foreign country. The last thing you could do is to develop a new product for a new market. To sum up, your idea could involve either a product that is new or existing or a market that is new or existing. If you want to go through this tool step by step, I recommend the following article.
Testing Your Idea
In order for your idea to succeed economically, there are important things for you to consider. I’ll list a few questions you need to ask yourself.
1. Explicitly describing my idea
- What is good about my product or service? How do customers benefit from it?
- How does my idea distinguish itself from the competition?
- What is my target audience?
2. Is my idea realizable?
- Do I have the abilities to implement my idea? (e.g. technical knowledge)
- Can I make money with my idea? (e.g. market size, consumer acceptance)
- Are there any legal restrictions or do I need a license for anything?
3. Can I copyright my idea?
- This applies if your idea includes an innovative product. There are different patents you can apply for, like design patents, utility patents or trademarks.
Considering these aspects when forming a business idea should help you a lot. You don’t have to have all of it figured out in detail. This will follow when you make your business plan. But if you’ve dealt with all of them nothing should be in the way of going further with your idea.
Don’t forget that self-employment is a challenge. Ask yourself if you really want to be an entrepreneur and found your own business or if you’re just not that type of person. There are a lot of traits that will help you succeed in this business, for sure. But the biggest requirement is undoubtetly motivation. So if you’ve got that, then you can definitely do it! You can learn more about what we do at Yugen here. Thanks for reading. Take care and see you next time!