Before you start a business, take the time to think carefully about your business idea. Ask the people or organizations in your target group what they think. Ultimately, the concrete benefits for your customers – and whether customers are willing to pay for them – will determine whether your business fails or succeeds.
Check the following questions:
- Does my business idea work?
- What specific benefits does my product or service offer to my customers?
- Can I explain my business model in clear and simple terms?
- Is my target group willing and able to pay for my product or service?
Talk to your target group and constantly review your business idea!
Your customers and your target group will determine whether your business fails or succeeds. Involve your target group and your future customers in the development of your business concept at a very early stage. That will give you valuable feedback and useful ideas about how to match your idea and your product/service to their real needs. And that can give you an advantage over the competition!
Develop a strategy and a business model
Present your business model in a structured form. Review it honestly and improve it before finalizing your detailed business plan. The following approaches are good ways to do so:
- Business Model Canvas at a glance
The Business Model Canvas helps you visualize your business model and highlight its key success factors clearly and logically.
- Engpasskonzentrierte Strategie (EKS) – Specialization as a success factor
The EKS approach helps you understand your personal strengths (“What am I good at?”) and use them to develop attractive offerings (“Where can I create the most benefits?”). In the interests of your lasting success, it is important to match your offerings as closely as possible to the needs (the bottleneck) of your target group (“Who needs me?”).