Starting a Business – So, yesterday I wrote about starting a business and the first two things to do. You need to get a problem to solve, and then, get a business model.
Today, I’ll be talking about the third stage and that’s doing a feasibility study. This stage is very important. Many entrepreneurs don’t ask questions, they just take a plunge. When they fail, they start blaming innocent old women in the village. Lolz.
So. Let’s dive into this straight.
You need to do a thorough study of the business you’re going into. Is it a business that is viable and scalable? Is there a constant demand for ithe product/service you intend to offer? Is it a red ocean or a blue ocean? Will demand keep increasing or is there a threat to it? What about what is called a 21st Century Threat analysis? Have you done this?
Now, lemme move slowly.
Firstly, pick up your paper and write out ten competitors in your industry. For the next one month, dedicate your life to studying everything about these people. Go to their social media pages and stalk them. Call their customer care line. Order products from them to see their delivery time. Look for faults to capitalize on. If you can’t pick out at least ten people doing the same thing you’re doing, then, you’re in a blue ocean.
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Now, what’s a blue ocean and red ocean market. A bless ocean is one that is new and not known. Its an industry that’s just coming out. For example, not many people (in Africa tho) know about Artificial Intelligence. So, if your business is connected to that, you’ll be running operations in an entirely different way. You need to understand that when you start your business, there won’t be already existing demand. People don’t even understand what you’re doing, hence, you have to stir up demand first.
On the other hand, a red ocean is a very contested one. Has several competitors and is a very crazy space. Here, there is already existing demand. But, you’ll have to fight of competition. For example, Fashion Design. This is a red ocean industry. Yes, people will always want to wear clothes. So. There will always be demand. But, competition is strife. Go and do this test. On your street alone, you should have more than five tailors. Not counting the ones that don’t have shops, but use their sitting rooms to run their businesses.
Before I round off today, it is important to understand ‘demand’ as to how it affects a business. Tomorrow, I’ll talk extensively about the topic called Demand Planning. After that, you’ll know if that business in your head is worth going into. Join me by 10am.
For example. If you still want to become a Makeup artiste at this point, you should have a rethink. The industry is gradually collapsing. We are having a situation where the supply is now more than the demand. There are too many MakeUp Artistes on ground now, and many more are joining the ranks.