Steps to Turning Your Idea into a Profitable Business
You have an idea and think it can be the next big thing; great! Maybe you want to turn this idea into a profitable business but do not know how. Brian Tracy, personal development guru and sales expert once stated; “The average person has four ideas a year, which if anyone is acted on, would make them a millionaire.” Just remember that. You might now be thinking, how do I put my thoughts into action and take that step to further my idea? Follow this game plan of steps below, and it will transform your life.
Step 1- Completely and Thoroughly Understand Your Vision and The Problem at Hand
If you don’t fully comprehend how your idea will be a solution to an issue, how will others understand it? Make sure your product solves a problem or provides some type of helping hand. Make sure you understand how you will do this, what the demand looks like, how widespread the problem is, and keep an eye on out on your competitors and what they are doing.
Step 2- Determine Your Target Market
Who has this problem? Your answer to that question will determine who your target market is, and your plan on how to reach them. Why haven’t existing solutions worked and how will yours stand out? What is your competitive advantage that will appeal to this target market? Figure out patterns, trends, and behaviors of the target market and how they interact with purchase patterns. Figure out the hitting point in which your customers are willing to pay for. Get some feedback and wrap your head around this.
Step 3- Strategize and Plan
How will you reach this market and influence them to purchase your product? Can you partner with influencers, will you use word of mouth advertising, how will you go direct from producer to consumer? Strategize and plan as much as possible. Prepare for any issues that may arise and have a potential solution to each of them. Create a rational financial model to see that your idea is viable from a financial standpoint. Set up a revenue model, with costs and expenses. Draft a marketing plan, a sales plan, and other operating costs. This is crucial to the process.
Step 4- Find Your Team and Get Feedback
By this point you should have a plan. Express to your friends and family, network, and others within your target market to get some opinions, get some basic questions answered, and to figure out if you are missing anything. The more feedback the better, always.
Step 5- Show Strength of Your Concept + Feasibility Strength
Start prototyping. Our team at Spark Innovations can help you with that, as we have over 30 years of experience to specifically tailor your prototype to your vision. Proof and strength of your concept is essential when it’s time to raise capital, as this show investors that this concept is feasible. It must have the functionality to solve the problem at hand, and the vision should shine from there. Take notes, apply feedback, and then recoup from there.
Step 6- Capital
Do you have the source of capital to raise funds to turn this idea into a profitable business? Do you have investors, do you have a loan, a small business grant, will your proof of concept be good enough proof for investors? These are all very important things to keep in mind and consider when evaluation capital. Always refer to your financial model to determine necessary capital needed.
Step 7 – Be Persistent
Being persistent is something that is not stressed enough. Be consistent, be constant, and keep going. Keep that momentum going and do not let anything stop you until you turn that idea into a profitable business. You might encounter some obstacles along the way, but that is what the process is about. Follow these steps and follow the path of success!