The current “business model” for start-ups is to believe that you must have an elaborate structure built before you ever launch your business. New business owners spend their first months and years working on strategies that might actually make more sense only for the established business. It’s become common to invest massive amounts of time and money into all sorts of marketing infrastructure before the company makes a penny in revenue. The entrepreneur is basing all this expenditure on an unproven concept.
Many businesses never even get launched, and they certainly never become successful. Consider some ideas on proving your concept before you invest further. Here are a few ideas.
1. Start simple.
Resist all the “conventional wisdom” about starting with an elaborate and completely structured business. What’s the simplest way to start and prove that your business concept is financially viable? How could you start now and most quickly measure the revenue reality and market demand?
2. There’s nothing wrong with serial entrepreneurism.
This is what some business owners do – the proverbial throw as much at the wall as you can, and see what sticks. The only “catch” is that you stick with each attempt long enough to truly test the concept. Don’t jump from business idea to business idea and never get successful at any of it.
3. Don’t work on more than one new business at a time.
Dividing your energies is a recipe for failure. Select one business and one business concept and maintain your focus on it. Commit and follow through. Select the project with the highest potential – that also excites you the most. Go with it. You know which one is right for you. Trust your own instincts.
4. What is the simplest strategy you can put together to market this business concept?
How can you get business and revenue happening the easiest? What’s your simplest, easiest route to market this concept and to prove – or disprove – it as viable.
5. What are the criteria you want to set to prove to yourself that your business concept works?
What revenue goal would that require? How many clients? What kind of reaction do you require from the market? What milestones would prove success for you? What do you need to see happen? How do you know it’s a winner? Get this all down in writing and check your progress regularly.
6. What strategy will you use to prove your concepts?
What actions must you do and what is the timeline for them? In order to prove your business concepts, you must have a written plan, know when you’ll do what, and follow your plan.
7. Follow through on your strategy.
Take the required actions at the necessary times. Tweak your strategy as needed. Consistently (weekly is recommended) consult your strategy, re-evaluate it and revise as needed.
If you’re starting up a new business, keep it simple to start, and prove your concepts before over-investing in something unworkable. You don’t want to become another business failure statistic.