How To Move From That Idea To A Business

Every business starts with an idea in the mind of an entrepreneur or a potential one. Then, the idea goes through processing and then comes out in a few years as a well-established business. But this does not happen without some committing steps which have to be followed.
 
Every now and then we conceive wonderful ideas but the transformation of those ideas to reality is usually what makes the difference between those who achieve and those who don’t.
 
I assume here that you already have the idea of the business and have overcome all the fears that usually deter people from delving into business. All you need now is to know what to do with that mind-blowing idea you have. In this post, I have tried to be as simple as possible so that no matter your business knowledge, you can understand what you have to do. I can assure you that if you follow these steps carefully, you will start your business soon.
 

1.    Put Down Your Idea

Stop talking the idea and start writing it. The tendency is to always want to share the business idea you have, with people around you. This hardly helps in anyway. Even if you are sharing it with potential partners, investors or sponsors, this is not the first thing to do.
 
What is most important as soon as you conceive that wonderful idea is to write it down as detailed as possible. Mind you that this is not yet a Business Plan. It is the concept which you are writing down as if explaining it to someone. As you try to write down your business idea, you will be able to appreciate just how much you know about that business. You may realize that the idea you thought you understood so well, is still a strange one to you.

So: Quit talking your business idea with people and start talking it on pen and paper.

2.    Clarify Your Idea

As you tried putting your idea down, you surely realized there is much you need to do in terms of findings about that business. This tells you that you need to do serious research about the business. Even if it is a new kind of business you are looking at, there are still things related to that kind of business that you need to find out about.
 
In doing your research, look out for those who are into the business already, and find out from them how lucrative it is: how much basic capital is needed to start, how much average daily sales they realize, how much profit they realize, what is the turnover like, what are the peak sales period, what are the challenging periods, who are the suppliers, which places are the most strategic locations for the business, what risks are involved, etc.
 
Apart from those who are already into that business, it is also important to talk to the target customers ad find out what they think about your idea. Off course your findings must be from trustworthy people else they will derail you with the wrong information.

So: Make sure you carry out extensive research on the business idea.

3.    Work Out A Business Plan

A business plan in simplest terms is the plan of how to go about the business. It starts from the idea to the execution unto growth and expansion. It looks at the short, medium and long-terms plans of the business.
 
Your business plan will be looking deeply into many aspect of the business. Aspects like the business goal, the vision/mission, the objectives, the strategy, the name, your product, the pricing, the staffing, the target customers, the capital needed, the promotion required, the projections based on the research, the timing, and so on. You can read more on business plans in my post titled “Seven Benefits of Having A Business Plan” and “Fifteen Questions To Answer In Writing A Business Plan”

Working out a business plan will give you a strong grip and mastery over the idea you have. 

So: Do not be in a haste to start that business without taking pains to work out a plan for it.

4.    Get Enough Start Up Capital

I am sure you must have been wondering why I have not mentioned money since I started. It is because money is not the first thing you need to have in place. You need to get the idea right, the plan intact and then start pulling together the necessary capital to kick start your business. The amount of capital you need will be revealed by the detailed plan you have.
 
Whether you are outsourcing for start-up capital or you are bearing the full cost, you must take time to be sure that you have enough capital to sustain your operations for some time while hoping that the business could start yielding profit which will be plunged back into it for growth. 

Your capital must also take into account, uncertainties that may occur, like failures and disappointments. Don’t expect everything to work out as planned. Some things will certainly go wrong and you don’t have to go out of business for that.

So: Raise money capable of starting and running the business for some time, without relying on profit

5.    Get A Good Location

In writing your business plan, you must already have thought deeply about the kind of place which is most suitable for the kind of business you want to do. Some businesses need to be situated in very busy and high traffic locations for high turnover while others need very quiet and cozy environments. 

Whatever the case, the bottom line is that you need to situate your business in a way that gives your target customers easy access to it and at the same time, favors the operations of the business activities.
 
I have come to an informed conclusion that the location of a business has at least 30% impact on the proceeds from that business. As soon as you get your plan ready, waste no time to go for a place suitable for your business.

So: Take your time to search for a good location for your business and when you see it, do everything to own it.

6.    Set Up The Operations

If your business will need supplies from elsewhere, this is time to build the necessary links that will guarantee the timely supply of your goods. So ensure you have a reliable supplier. If you are into the production yourself, it is time to put in place all that is necessary for smooth production. Get all the machines you need and mount them. Put in place all the safety requirements for smooth operations.
 
Here also you need to consider all the necessary registration and tax duties you are expected to meet up with. One thing that kills businesses is having to always struggle with legal authorities and sometimes having to shut down your operations and keep your customers disappointed. Avoid this as much as possible.

So: Set your operations right

7.    Get The Right Persons

Getting the necessary and right personnel for the business operations is the most expedient thing to do now. This is one very sensitive aspect in your business and will have about 30% impact on the proceeds from the business. So, take your time and carefully/wisely select the right person(s) for your business. By right person(s) I mean person(s) with the right kind of competence (knowledge, skills, experience on the business), that will take your business forward.
 
However, for a start, minimize the number of persons to hire, as much as possible. Get only the number that you cannot do without. Some workers will be willing to do the work of two persons with just little more motivation. Exploit this, now that your business is still new and you don’t handle so much yet.
 
Note: Very often, you who has the idea and understands where the business is going than anyone else, will need to work there for some time and set up a good platform for it to grow. Don’t start it and immediately leave it in the hands of a worker. Except you are so close by to supervise and the worker is so competent and passionate enough to carry the business forward.

So:  Bring life into the business by getting people who are enthusiastic about it growing.

8.    Start Without Delay

Once all the above are in place don’t waste any more time. Realize that ‘perfect’ is often the enemy of ‘good enough’. Usually there is a high tendency to want to put everything in place for a perfect start but this only turns out to kill the passion in you, necessary to set the ball rolling.
 
At the initial stages of the business, you need to do some experimenting with your product. This is more like a testing period for you. You will be testing the product if it meets the needs of the customers as you expected; the packaging if it meets the standards; the price if it is affordable enough and able to compete well with others’; the marketing, if it is getting as many customers as expected; etc.
 
As you start your business through testing the business idea, be keen to get feed-back from on every aspect of the business which you are testing. Listen to the customers and workers speak, listen to the sales book, listen to the competitors, listen to the business plan and finally make the necessary adjustments and get fully established.

So: Waste no time to start, while learning and adjusting with time

I trust that the picture is now so clear and starting that business you have been thinking of is no longer a myth. If so, let me read your comment below.

See also "How To Deal With Your Fears Of Starting A  Business" and "How To Know If You Have A Great Business Idea" for more.


By Kadzem Claude

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