Dreaming of Starting a Second Business? Here are 3 Important Things to Note
You’ve built a successful business and now you are thinking of starting a second business. Should you go for it on the premise that you are an experienced entrepreneur or should you take your time to validate your idea? Which of these two options will drive your decision?
The truth is, starting a second business based on your success in the first business is not a guarantee that your second business will succeed. Yes, it might be true that you have a successful business already, but you still need to follow the due process and note some important things to ensure that your second business is also a success. What are these important things? Three of them are shared below.[Great Read: 7 Solid Ways to Build Your Persuasion Skills]
1. Validate your idea
It might be tempting after building a successful business to start thinking you’ve got the code of building a successful business. This is simply not true. One of the ways you can guarantee the success of any business is that the marketplace is ready to receive the idea.
How can you validate your idea?
You validate your idea by conducting market research. Is there a demand for your products (goods/services)? What is the market size? How much profit can you reasonably make with each sale? Is this a sustainable business? Yes, these questions might look basic, but you should never allow yourself to be drawn into thinking answering them is inconsequential.[Great Read: From Hawking Pepper in the Streets of Ibadan to Becoming One of Canada’s Most Influential Women. Read How Adeola Olubamiji Turned Her World Around]
2. Ensure you have the capacity
To start with, let’s define capacity in this context. Capacity means that you have the strength to withstand or contain. If you want your second business to succeed, you must have the capacity not only in terms of ideas but also in terms of everything you need to make the business a successful one.
Examples of the things you may need include human resources, logistics and financial resources. Are you relying on your current staff? Can your current business operate without your physical presence for more than six (6) months? Do you require your signature for everything that involves your first business?
The answers to these questions and more are what will give you pointers as to whether you have the capacity or not.
3. Have a Solid Launch Plan
If you currently run a business, chances are there is a high tendency to take the launch of your new business lightly. You might have a feeling of security that says, “I can make it happen before, so I can make it happen again.” This is a great mindset but when it comes to building a profitable brand, you must work with a strategy more than just a feeling. Yes, gut feelings are strong and they are useful in helping entrepreneurs do what they initially think is impossible. However, gut feelings cannot be relied upon.
The success of your business will depend on a sound strategy and that’s why having a solid launch plan is part of a bigger strategy that will help you succeed.
Why is a solid launch plan important? It’s important because a solid launch plan is a predictor of success and if implemented correctly, it can help you generate a buzz and then it helps your new business to gain momentum.[Great Read: 5 Things Every Entrepreneur Must Note About Contracts in Business]
Building a second business is a great idea, however, you still need to proceed with caution. If you follow your due diligence, not only will your second business be successful, you’ll also become a role model unto others.
Thank you for reading! What is one thing you will take away from this article? Kindly share it below.
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