So, you have a fantastic idea which you believe could become a success! The idea is perfectly thought out in your mind and you are ready to put it into action.
But wait, budding entrepreneur… how are you going to do that?
Yes, you have reached that crucial stage where you need to turn your idea into a business.
It is now no good simply having the idea; the idea needs structure and a mechanism to get it off the ground running smoothly.
In this article, we talk you through points to consider and actions to carry out in order to turn your idea into a business.
The fact that you are at the stage of wishing to turn your idea into a business means you’ve already got over a first step: deciding you are ready to move forward!
1. Map out the finances
I’m afraid that we just had to kill that idea excitement by jumping in at the deep end in terms of how to turn your idea into a business. It is now time to get as realistic as possible which requires planning your capital as well as your financial model.
You will need some form of capital to get your idea turned into a business and this will require your thinking about how best to do so in terms of what is accessible to you and what works best for you and your potential business.
If you are not in a position to self-fund your business you may wish to consider borrowing from friends or family, or more formal borrowing such as a loan or using a credit card. You might even want to consider crowdfunding…
You will need a financial model which should contain estimates of figures and forecasts for up to three to five years. In terms of working out your financial model, one approach you could take is by working out a “bottom-up” and then “top-down” financial model.
The former will require you to start with your idea in terms of how it will be made, how it will be marketed and then finally sold to your consumer. The latter model requires you to look at the size of your market and what things you need to achieve in order to make a profit.
2. Work out what your market is and research it
Point one leads us to the second step: know your market. It is all very well having what you believe is an excellent idea which you wish to turn into a business but you need to check that there is a market for it and that there is room for your idea within it. Think about the strength and weaknesses of your idea, the risks which accompany it and any avenues you have not yet but could, exhaust.
In order to work how an idea will fit into the current market, an entrepreneur needs to be clear on who the user of their idea will be. This will allow them to then sell their idea to and convince others that it is worth investing in.
Unfortunately, within the first five years of businesses starting 50% fail, and in the first year 30% fail, with poor planning as often the reason for this.
Beginning planning can be as simple as, for example, vocalising your ideas with others, working out what your objectives are for your business idea, what you will need for it to be a success, and where your advantage is in terms of competition within the market.
Use this process to reflect, and ensure you are convinced that your idea is as good as you believe it is and one ready to be turned into a business.
In terms of more detailed and further planning, to turn your idea into a business you will need to have an actual business model, with tasks that need to be achieved and dates set for these.
4. Avoid the solitary path
Yes, it has been stated that there are few successful businesses that are the making of just one individual. Whilst you may have a great idea it might help to find some partners to support you with it, even if only as sounding boards. Look out for talent which you can use to your advantage as part of turning your idea into a business.
If you cannot find, or do not like the idea of gaining a partner, at least start mingling among other entrepreneurs to share ideas and learn from their experiences. Create positive relationships with people and do not be afraid to ask for help or simply ask questions. Others will offer your feedback and at times perhaps constructive criticism so keep an open mind when listening to them.
5. Set up your legal company
As this article is all about how to turn your idea into a business we could not miss out the perhaps obvious but crucial stage of actually doing just that! You have done all your main research and planning, so now for the formalities.
To turn your idea into a business you need to consider what legal structure your business will adopt. There are three main legal structures you may consider as follows:
- Sole trader – This where you are legally the business and this is the simplest legal business structure;
- Partnership – This could be considered where you have chosen to have a business partner or partners;
- Limited company – A limited company is a legal entity in itself so you are not the legal entity of your business. However, a limited company has legally administrative requirements which accompany it which can be complex at times.
6. Chin up and ooze confidence!
Let’s end on a positive note! After all, you have an idea which you are positive about and are now ready to demonstrate your entrepreneur skills by turning your idea into a business.
Whilst you go through the process of turning your idea into a business, it is important to stay positive and confident, particularly about your idea.
People will question you as you turn your idea into a business, particularly if you are convincing them for funding, and if you cannot demonstrate confidence in yourself and your idea how can you really expect others to?…
At Cue Talent Advisory, we handle all affairs business, management & lifestyle for individuals, businesses, and overseas clients. To find out more about how we can help you to improve your business contact us to set up a chat, get in touch via our contact form, email us directly or call us on 0203 815 8005.