First Priorities of Starting a New Business
Almost anyone can be an entrepreneur, but it takes hard work to be a
successful one. At this point keep it simple, specific and focused. Here are the
key things to work on first:
Business Concept or Model - Can you explain what you want to do in 30
seconds?a. What product or service will be offered?
b. Who is going to buy it?
c. How are they going to buy it?
d. When are they going to buy it? (year round or seasonal)
e. Where are they going to buy it?
f. Why are they going to buy from this company instead of
someone else?
i. What is the sustainable competitive advantage?
How will it make money? - At this point, don’t worry about the money
needed to start up; that comes later. Right now, focus on finding out
how much it costs to provide the product or service and how much
customers will pay for that product or service. Try to identify all the
costs you can think of. Split them into two groups direct costs; all the
costs to directly make the product or provide the service and indirect
costs; all the costs that exist whether you make or provide anything or
not. Direct costs would be things like materials, labor or selling
expenses. Indirect costs would be overhead things like rent, utilities,
insurances or outside services.
How much money to start up? - Don’t worry about where the money is
coming from, that comes later. These are the costs that come up just to
open your doors and produce your product or provide your service.
Some of the information may be tough to find. Put together and organize as
much as you can. If you get stuck, make an appointment with the NIACC JPEC at
(641) 422-4342.
