If you’re keeping up with the prescribed homework…
You’ve begun looking into the various means and ways that you might develop your business, you’ve done some basic research on costing, and you’ve looked at other benchmarks in analyzing how you might develop a strong value proposition.
First, ask yourself what makes your business special (think of this as your value proposition plus other benefits). Think not in terms of what your Mom might say, but think about your customers. Why buy from you? If you cannot answer this question convincingly, keep developing your concept until you can.
Second, ask yourself what’s going keep competitors from simply doing what you do – only better, with more money, staff, and marketing power. If you cannot answer this question convincingly, keep developing your concept until you can.
Third, what parts of your business are open to disintermediation or disruption from technology innovation or the leveraging of existing technology? If you cannot answer this question convincingly, keep developing your concept until you can.
Fourth, do you have a budget? Understand that starting a business always costs more than anticipated. Bringing your vision to life will be expensive. Do you have ready access to double the projected capital requirements without risking your most important assets? If you cannot answer this question convincingly, keep developing your concept until you can.
Here’s my stop-gap recommendation, if you’re not already doing so: Get a job within the industry in which you want to develop your business. If you don’t have the required skills – learn them. Let someone else pay you for “on the job training” and allow someone else to “pay for your mistakes.” Work on your concept, revise, and repeat.
If you’re already working in the industry, and you think you’re ready to jump ship, check to ensure you won’t be violating any agreements regarding customers, technology, work product, and/or trade secrets.