Ask Ali: "How Do I Know My Business Will Succeed?"

Question: Ali, when first contemplating a business idea, what is the best way to evaluate its feasibility—especially for emerging areas like online businesses?
—Lisa Almeida, Taking It Live!, USA
Ali’s Answer: “Hi Lisa and thanks for your question. Over the years I have personally coached hundreds of business owners, and I’ve witnessed the ones who have thrived versus the ones whose ventures never took off. When you are evaluating what type of business to start, there are dozens of variables to consider, but to keep it simple here, let’s look at the three basic steps to creating a business that will succeed:
1. Stick with what you know. Business owners thrive when they are emotionally committed to and excited about what they are creating. It’s the reason they don’t give up when there are challenges or bumps in the road. And you may be surprised at the money that can be made from certain passions—I’ve mentored women through building six-figure and even seven-figure businesses centered around raw food, weddings, and even talking with angels.
2. Work your numbers. You have no excuse to not do research on other businesses out there that are similar to what you are considering. See how they are charging, how they package what they offer, study their brands and marketing. Figure out your fixed costs—such as rent or utilities like your cell phone—and variable expenses such as inventory and marketing costs. Sharpen your pencil and make sure that you see a clear path to making money relatively soon!
3. Get the word out. Your marketing is more important than your mastery, especially when it comes to making money. In other words, you should dedicate the majority of your time to your marketing. Identify your target market, determine how you will reach them, and test your marketing messages over and over until you nail down the one that gets them to respond and buy.
I hope these tips help you get started and I wish you luck with your new venture!”

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