Business work shop 1

First of all, focus on your customers. If you are offering a service or product that people want, or even better need at a price which can generate a decent profit there is a very good chance that this business venture will work.
Some ideas fall at this first hurdle, as people may find their are not enough customers to which their price will attract, either this being that the price is to high or that it is to low to make a profit.
Thinking about where your customers are or live, many local businesses rely on local trade, so if you want to start a cup cake shop, you need to look at how many shops there is already established which sell cakes.
You need to be realistic about who will buy from you, it may be hard selling to other businesses if you do not have a past record of doing so.
And bigger businesses usually prefer to buy from larger suppliers as they are guaranteed the volume.
There may be a high volume of customers but the problem is, they are buying from some one else already.

Unless you offer a very different service or product, something that us unique then there will be rivalry, most new businesses will come across well established firms offering the same. And these firms will already have a big chunk of the customers, as they may have been up and running for years.
Even if you are planning to open the first cyber cafe in your area, you may have other cafe's which are well established or well known and you will have to compete against them. This isn't always a bad thing as it shows that people in your area are interested in using these kind of services and use that kind of product.
You need to convince the customer to buy from you, this means you need to offer something which will temped them.

Ask your self, what benefits does your service and products offer and what is different about your service to the rest?

How can you set up something that offers a more friendlier, higher quality, and more convenient then the rest of the services?

Can you offer something different, something your competitors don't?

if you aren't should you be?

Niche

Many customers are successfully because they target a small section of the market (niche) to which they may become the only supplier of a number of customers.
Having a good, well planned business idea can help you to define a niche. A business plan can tell you what kind of people you should be targeting for business for example I am an AVON Sales Leader and Representative, My niche is my area's plus my family who buy my products and my niche for recruiting is people who need or want to earn extra cash. I target mums with buggies, mums with children, Younger women, and ladies who like beauty products. I do not bother with students because they do not last long.
If you can't narrow down customer then this does not mean to scrap it, it maybe just it needs a little more thought and planning.

You need to be able to convince new customers to buy from you, You will need to think about how to market your business, it needs to be promoted so that people can see it, it needs to be clearly stated what you do and if for insentience your names was going to be Colin's lawns, then you need to maybe state your last name for example Colin Scott, the lawn man or CS Lawns because their maybe about a hundred Colin's who mow lawns, this can lead to confusion between client and other 'Colin's' may benefit from your adversing!

With some business idea's it may not be as simple and you may need to go out and talk to people face to face, such a NETWORK MARKETING. You may need to explain in clearer detail or show the products in order to gain a better customer base. If each sale is only going to be small amount then it may not be worth you time and may be better if you sold your stock in bulk to a shop or re-seller.

Calculate your costs.

This is very important that you get it right, as if mistakes are made, it may be very hard to put right later on. Many business fail because they have not taken into account with how fast different costs can add up. For example I take on Representatives for my Independent AVON business this costs in petrol, If I travel to Stoke-on-Trent it may cost me £40 so instead of signing up one Rep that day, I aim for between 2-4 if I can make this.
As well as material costs, you may have to cover overheads (bills) if you have a shop or an office or even if you work for home there will be phone calls and utility bills. If you have to employ people then you need to seek legal advice or use an accountant (these are also costs) and then at the end of all that where are your wages coming from? can you pay them?
If you are selling through an intermediary like a shop then you also need to think about the cost of your products, and what are your customers prepared to pay. Delivery costs also need to be taken into consideration, You need to regain any money you forked out through sales of your stock, However you then need to think about how much you need to put on your prices to get back these costs and how they will look to your buyers.

Getting realistic

Are you still standing? Well done you are doing really well then. However will it work when your business is open for the first time. Some ideas may work up until this point still may not make a profitable business.
If your business involves having customers in, or business meeting then you may need a suitable building, as you home may not be suitable for this.
Then there is more costs, with rent, licences, liability cover and insurance which all have to be covered from making sales.

No matter if your idea is brilliant, starting up a business incurs big risks, some ideas more then other. You may have to spend lots of money before making an actual sale, relying on any amount of customers to heavily is too dangerous.

Now consider if you have what it takes to turn your idea in to a venture,

Business workshop 2 to come soon