Every entrepreneur knows that innovation is at the center of any startup idea.
But scaling that idea into a business requires a lot of effort. That’s probably a reason why starting a business can be a tough decision to make.
Being aware of the process can help you put your best foot forward as an entrepreneur, and prevent you from giving up too soon.
So, here are the 5 stages of business development you should know about.
1. The Winning Idea
Entrepreneurs know the joy of crafting a winning idea. However, they also know how hard a winning idea is to come by.
Entrepreneurs also often do not have just one idea.
The ideation process is the hardest as it involves sorting through multiple ideas and figuring out which one is worth pursuing. This process involves looking at the market demands, the problem solved, customer intent, and many other factors to conclude.
It also includes gathering preliminary data on the viability of the product or service and the potential competition in the market.
Very rarely do entrepreneurs have ideas that have no competition or no alternatives on the market. So it is very important to examine the viability of an idea before you move forward.
2. The Business Plan
Creating a business plan is the next stage of the business development process but it is the first step to making your business idea a reality.
A good business plan addresses the past, present, and future of the company. It
also includes a forecast of expected sales, costs, and profits.
A good business plan also aims to address the big picture of how the business fits into the industry. Simultaneously, it attempts to address the individual customer or business problem that the product or service fixes.
As financials and a five-year forecast are a big part of the business plan, it is necessary to understand all startup costs associated with starting a business from legal fees to warehouse space, etc.
Of course, you know that just dealing with the basics of personal finances can be a lot to handle for new entrepreneurs, right?
So the best thing you can do is to hire professional business plan writers who can help you through this technical process. A professional business plan will also help you secure valuable funding from investors.
3. The Implementation Question
Coming up with an idea and a business plan is all fun and exciting but it is also all hypothetical. Unfortunately, the implementation stage is when most entrepreneurs fail.
“How can I do this?” is a tough question and if you cannot answer this right, then your business will never take off.
Remember, the startup world is ruthless and extremely competitive. If you don’t do everything to get your operations started soon enough, someone else will.
4. The Expansion Hurdle
Once you get going with your business and start making some sales, you are bound to arrive at the expansion hurdle.
Production costs can increase to the point where you start losing money which means that if you don’t expand your production team and lower your materials cost, you may start blowing through investor money.
Thinking about expanding your business into different markets and industries is the key to creating a profitable business.
5. The Growth Strategy
One of the biggest reasons some companies experience losses of millions of dollars and still stay afloat is because of their growth strategy.
It is important to note that just because a company reports a loss, it does not mean it lost money. It can just be that they are reinvesting everything back into their growth and have nothing to take home.
Such an aggressive growth strategy is imperative to take a startup idea and turn it into a multi-million dollar company.
Conclusion
Lastly, becoming an entrepreneur will not be easy by any means but it will be rewarding.
Your first business venture will either be extremely successful or teach you everything you need to know before you start your next one.
