We’ve all been there-you’re sitting with friends and suddenly someone comes up with an idea for a new product. You might think that you could make a lot of money if you created this product, but most of the time, the idea slips away and someone else gets there first. So, what would happen if you took that idea and turned it into a business?
In this article, we are going to offer up some tips to help you turn your idea into a business in 2020. Keep reading if you’ve got something in mind.
Will It Work?
If you have had an idea for a new tech product that you think could make you a lot of money, you might want to spend some time thinking about the logistics. It isn’t always possible to turn an idea into a reality and you need to think seriously about this. Not only should you consider the technology involved but also the cost and the market for this. If you are happy with this, time to move onto getting started.
Writing A Business Plan
The first step that you should always take before you even think about starting your own tech business is to write out the business plan. Without a solid plan, you are risking it all as you won’t have given yourself time to think about the elements involved. Your plan should outline the tech product itself, the funding you’ll need and your projections. Get some inspiration online to figure out what you need to include.
If you have only recently come up with this idea and don’t have much business experience, it is likely that you won’t have the funding you’ll need lying around. This is why the next step is to start hunting for some funding. The great thing about creating a tech product is that there are many investors who are interested in this sector. Take Tej Kohli, Peter Thiel and Fred Wilson, these investors are known for their contribution to tech and so this is a good place to start. If you want to find out more about Tej Kohli then check out Kohli Ventures.
Market It Correctly
Our final tip for those who want to turn their tech idea into a real business is to make sure that you are marketing it correctly. If you have no experience in marketing, then you will need to do your research. You’ll need a website, social media channels and most importantly, a strategy. You need to know who your target market is, otherwise, you could be wasting your budget. Choose your marketing strategy wisely and this will get you on track.
What Problem are you Solving?
When you strip a company right down to the core function, you will soon see that it solves a problem. You might be so infatuated with the idea you have, that you might not be entirely focused on the solution that it is able to provide. A lot of businesses tell everyone that they have a solution, but they don’t quite know what it is. Ideally, you don’t want this to be the case for your company. Amazon for example once were able to solve the problems of e-commerce at the time. It was very expensive and it was also inconvenient. In this day and age, however, they have more sales when compared to every single one of their brick and mortar competitors. Bottom line? All successful companies better the lives of their customers by eliminating a problem.
Find Your Ideal Market
Another thing that you need to do is picture who your ideal user might be. You have to figure out their habits and you also need to make sure that your idea fits in with what they might want from your company. One of the biggest mistakes that any start-up can make is the failure to understand what their product or service is about. Instead you need to figure out what they find compelling and you also need to know how to make your service different to what they are being offered by your competitors.
Find your Support
Having a business partner can certainly offer you a lot of different benefits. This is especially the case when you are just starting out. Aside from building your team, having a quality relationship with other business owners can give you a great deal of invaluable knowledge. It’s so important that you make sure that you pick the brains of others and that you also make sure that you take onboard any advice or comments they might have.
Create a Business Plan
When you have done all of your research, you then need to check to see if it is financially viable. You need to have a bottom-up financial model here. This will help you to focus on your business product or service. If you do this, then this will give you way more insight on how your business is going to run. If you are not well acquainted with financial modeling do some catching up. Wall Street Prep has a wonderful guide that explains everything about financial models. When you are entirely satisfied with your business model and your financial model, you can then move forward knowing that everything is in place. Of course, if you go from there, then the next step would be for you to go ahead and launch.
If you have recently come up with an idea for a tech product that you think could realistically do well then now is the time to get started. This doesn’t have to be a pipe dream as long as you are sensible about what you are doing. Use our tips and soon you’ll be making all of the money that you hoped you would, not to mention that you will also be able to make sure that your business model is successful.