Building the Correct Business Model for Success
In developing the correct business model for your business, there are many components. First one has to know what your goals are. Second, you have to know what length of time is reasonable to attain the goal. Third, you have to know what the budget will be to reach that goal. Fourth, you have to know the rate of cash burn. Fifth, you have to know whether the purpose of the business is to grow it indefinitely and then sell it later down the road, or whether it is simply a means of livelihood, or whether you want to grow it for a short period of time and then sell to a company in the same business. In other words, you can’t go into a business without knowing why you are going into that business and you have to know if there is an exit, how that exit will occur and within what time period that exit is likely.
All businesses start with an idea. Unfortunately, many people just run with their idea before testing the market for that idea. It makes no sense to attempt to launch a business if you have not determined that the product or service you want the business to deliver is in demand. There are many ways to test the market. In the internet marketing field we have tools, Amazon, Ebay, Google Trends, Yahoo Buzz, Twitter Trends, Technoratti, Bing. CNN Popular. Try this site surchur.com. It gives all the above information and a whole lot more. You can also check with advertising agencies and you can also check yellow pages online to see what the competition is. My point is to make absolutely sure that your product or service is needed before jumping in.
Your next step will be to write a business plan, there is a great deal of information on writing a business plan on the internet. Whether your company is new or already in business and you want to grow it, following the guideline of writing a good business plan will refine your thinking dramatically. You will know your cost of operations, how many employees you will need, what your cost of goods will be, all the other expenses and what your break even point will be. Questions that you will be asked by the business plan model will make you think through items that you may not have thought of yourself. It will greatly help you run your business within boundaries that allow for growth and yet prevent financial failure. I know you know that most businesses that are new fail within the first year. Do your research and write your business plan and you won’t be one of the statistics.
Sincerely
Dr Howard Marshall
All businesses start with an idea. Unfortunately, many people just run with their idea before testing the market for that idea. It makes no sense to attempt to launch a business if you have not determined that the product or service you want the business to deliver is in demand. There are many ways to test the market. In the internet marketing field we have tools, Amazon, Ebay, Google Trends, Yahoo Buzz, Twitter Trends, Technoratti, Bing. CNN Popular. Try this site surchur.com. It gives all the above information and a whole lot more. You can also check with advertising agencies and you can also check yellow pages online to see what the competition is. My point is to make absolutely sure that your product or service is needed before jumping in.
Your next step will be to write a business plan, there is a great deal of information on writing a business plan on the internet. Whether your company is new or already in business and you want to grow it, following the guideline of writing a good business plan will refine your thinking dramatically. You will know your cost of operations, how many employees you will need, what your cost of goods will be, all the other expenses and what your break even point will be. Questions that you will be asked by the business plan model will make you think through items that you may not have thought of yourself. It will greatly help you run your business within boundaries that allow for growth and yet prevent financial failure. I know you know that most businesses that are new fail within the first year. Do your research and write your business plan and you won’t be one of the statistics.
Sincerely
Dr Howard Marshall