Step #2 Define Your Idea
In Step #1 you learned about ourselves and if you had what it took for starting a business and becoming an entrepreneur. Now we are going to start taking your idea and putting it to the test. In the process you should begin to get a clearer picture of just what your business will look like.
Describe Your Business Idea
This is one of my favorite parts of the road to starting your business. Business ideas are everywhere. You can run a Google search for “small business ideas” or “new business ideas” and be overwhelmed with what is out there. What’s important here is: what is YOUR business idea? Now is the time to sit down and write down every single aspect of your business that you can think of. This is the creative stage where there are no wrong answers and all ideas are good until proven otherwise.
7 Signs You Have a Great Business Idea
There will be plenty of opportunities along the way to test your idea- in whole or in part. I came across this post that gives some of the best advice that you can use to hold your idea up against.
- Does it solve a problem
- Is your idea scaleable
- Would it be hard for others to copy
- Is there a big demand for it
- Are there people willing to pay for it
- Is it something you are passionate about
- Is it different from what is currently being offered
When you take your idea and ask these questions, how does your business idea stand up?
Brainstorm Your USP
USP or Unique Selling Position just boils down to what makes you and your business idea stand out from the others. Hopefully you have some idea of your competitors and what is good and bad about the way they do business. The focus now is on what makes you stand out as better or different from them. Brainstorming your unique selling position is a first step. Go back over it a few times and try to bring it down to a really clear statement about who you are and what you have to offer that is different and valuable to your customer. This will tell you, exactly, what your competitive advantage is in your marketplace. Why should they choose you over anyone else.
Create a Mission Statement
One thing often overlooked when starting a small business is a Mission Statement. There are actually three similar statements that drive your brand message. Those 3 statements are your Mission Statement, Vision Statement and Elevator Pitch.
Your Mission Statement is really your “why.” Why do you want to start this business? There is a link to a simple formula that I have seen and used for some time on how to write a Mission Statement. Once you do, you will have a clear and concise sentence or two to show what the core values and mission of your business are. It is this statement that you can use as the standard to make decisions along the way.
Your Vision Statement is just that. It is casting a vision for your business, of where you want to end up in five or ten years. Maybe more. It is the impact you want to make in your community, in your industry, in your world.
When you Google Mission Statement Examples or Vision Statements you will see there is no shortage of options out there.
Your Elevator Pitch is, in its simplest form, what problem you solve for your customer. It got its name from creating something that you could speak in the time it takes an elevator to go from one floor to the next. It is meant to be no more than 2 or 3 sentences that are concise and easy for the listener to remember.
Your One Page Business Plan for Starting a Business
If there is one thing that seems to scare entrepreneurs away it is creating a business plan. Most of us think of them as being tons of work and, especially, lots of financial information. The truth is that creating a business plan can range anywhere from a single page for a small start-up service based-business to a lot of information and documents for a larger, more complex business idea. A quick Google search will bring up a ton of Business Plan Templates so find the one that is right for you.
At this stage of the game we are going to use a One Page Business Plan Template that helps you corral your thoughts and start finding a little clarity. It boils the essential information you need to know down to just a few questions:
What’s your idea?
Who’s going to buy what you’re selling?
How will you supply what you’re selling and what will it cost you?
Will you make a profit? When and how much?
How much money will you need to start your business and where will you get it?
For now, try answering these questions and see where you might need more information. It is okay, even preferable, to be as complete and thorough as you can in answering each one. You can refine it later on as things become clearer for you.
What’s Next
Once you have worked through refining your business idea the next step will be to DESCRIBE your ideal customer. Our next blog will give you the tools and prompts to help you do that.
If you missed the first steps in this series check it out here:
Step 1 Discover Your Strengths and Passions