This article is built on the scenario that you are going to quit your 9 to 5 desk job and pursuit your lifelong dream of starting your own business. Before you start, you need to have an idea, what do you want to make and why? It needs to be valuable for your chosen target group and should fill a hole in the market.
Build, measure and learn
To start the process, you can use the build, measure, learn principle created by Eric Ries. This is a way to test your product and use feedback form your target group to make it mere valuable and fitting for your wanted customer segment.
Start by building an MVP, this stands for Minimal Viable Product and its purpose is to show the consumer what your product can do, without spending money on a finished design. Measure it on your target group, learn from the feedback and use this information to further develop your product. You can also look up some software that can benefit your business.
BMC- Business Model Canvas
The business model canvas is a great tool that helps you get a structured look on your business. When you have developed your startup idea you can use it to write down your revenue stream, the set costs, customer segment, key partners and key activities to name a few. The most important part, however, might be your value proposition. This is a short statement that tells what you do and how it is valuable for a potential customer.
The Golden Circle
An important part of starting your own business is being aware of what you actually are doing, and this is where The Golden Circle comes in handy. This is a tool where you need to fill out what you are doing, how you are doing it and why. Number one and two is quite straight forward, but the last one is where you really need to dig deep and figure out why you are doing it. Maybe your product helps people in a new way or is it a better alternative to something already excising. Having this written down is a great way to always be aware of what you are trying to accomplice through your startup.
SWOT analysis
Knowing your strengths and weaknesses is key. This can be done by creating a SWOT analysis on your startup. This looks at the internal and external factors Strengths, Weakness, Opportunities and Threats. Ultimately, it will give you an insight into how you are positioned in the markets and what strengths you can play on. Even though admitting your weaknesses can be difficult, it is crucial to create a successful business.
These are only some of the many tools you can use when starting your own business. They will make you more prepared and are all good to have when you are presenting your idea, talking to investors, your partners and customers. Good luck on your journey!
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