Whilst there are no guarantees as to whether your new business venture will work, there are questions that you can answer that will help you choose the right one for you and help you get off to the right start. Questions about the value proposition, your revenue needs, the target market, and the appeal can help you decide between business idea A, B or C.
Hello, I’m Georgia and I started off as a wedding and lifestyle photographer before branching out further into the field of personal branding, mentoring and business coaching. My desire is that there would be many more entrepreneurs that succeed in business and that all their (your) hard work and sacrifice pays off. I would love to connect with you and find more out about your success stories and the lessons you have learnt along your business journey so feel free to connect with me via social media, and if you enjoy this article then please join the family by signing up to my newsletter and emailing list to receive exclusive content, freebies and offers – to get you started you can have 5 free stock photos to use on your social media.
So how do you choose between business ideas?
Having to choose between business ideas can be a daunting prospect. The pressure to get it right so that you don’t fail or miss a window of opportunity can cause a lot of stress and sleepless nights, but whether you are looking to start a new business or are considering a venture into a new project, it doesn’t have to be!
I am going to share with you 4 questions to consider and answers about each of your business ideas and by the end of it, you shall be able to start taking the necessary steps to get your new idea up and running. They are:
Does it have a good value proposition?
How quickly do you need to make revenue?
Which has a bigger market?
Which most appeals to you?
These questions are ordered in that way deliberately as well because if any business idea can’t answer question 1 with a resounding yes then it is more than likely not an idea worth chasing.
For more insights like these, make sure to check out our business-related blog posts after you're done here!
So let's get to it…..
Does it have a good value proposition?
The reality is people tend to think up all sorts of amazing business ideas but the ones that work are the ones that offer value to the customers, and when I say value it needs to be something that they see as valuable and not what you think is valuable.
When I say value I don’t mean that it has to have a monetary value to it either. Companies like Just Eat offer a service that allows people to order takeaways from many of their favourite restaurants that didn’t offer delivery, and some of them even allow you to order from multiple restaurants and then they will pick them all up and deliver them to you. The value is not monetary but it nevertheless offers customers something valuable because it offers them something they want.
Convenience, time-saving, entertainment, quality are all other things that people value. Just think in today's society with mobile phones being so good people could take their own photos (and they do), but you won’t get a leading business putting mobile phone shots on their websites because they want quality. People can cook a pizza in no time and for a fraction of the cost but it is the convenience of ordering one and having to do nothing but enjoy it that people find valuable.
Value propositions ask questions about the customer's needs and wants and then seek to find solutions for them. Having a great business idea that you believe is revolutionary is all well and good but are people looking for it and if not why? Would they soon change their mind if you bought it onto the market or would people stick with what they already know and have?
I go into more detail about the value proposition in this blog where there is also a link to my YouTube video on it if you would prefer to watch a video on it.
If you have 2 or more ideas you’re choosing between then the first thing to do is make sure they all offer value. If any don’t put the line through them!
How quickly do you need to make revenue?
This is the next question that you really need to consider. Not every idea will be an instant earner and will take more time to build up a clientele and a reputation. Not only that but some ideas will take more investment and that may mean that initially a lot of the profits have to be reinvested or pay off any start-up loans that you may decide to take out.
Starting a business is only worthwhile if it brings you the success that you are looking for – whether that’s your dream home, the flexibility of being your own boss or to spend more time with the family and less time at work – so there is no point starting one that is going to get you into debt and burden you with stress and you worry if you can make you next payments.
It would be easy to look at an idea and choose it because it has more potential of making you a millionaire, but don’t forget you will still need to pay the bills and put food on the table in the meantime.
Many businesses fold and crumble because they neglect to think about their cash flow. Understanding what incomings and outgoing a business will have is only part of the job. You need to know WHEN the money will be coming in and going out. You also need to know how much you need to be able to take out of the business each week or month as a wage so that you can live.
If you are in a situation where you can pretty much go without a wage at all for the first 6 months or a year then that will be massively beneficial to you. I was in this fortunate situation because my husband earned enough to cover our bills etc. and so it enabled me to give up my full-time employed job to start up my own business without worrying about when my first pay cheque was coming in. Although I have had to invest in a lot of equipment I do not have the overheads of work premises to pay for and I don’t currently have any employed staff members that I need to pay for. But not every business is the same nor are everybody’s circumstances so it is imperative that you work out HOW MUCH revenue you would need coming in and WHEN that would have to happen to cover the BUSINESS OUTGOINGS including your WAGES to see if you can even function.
I elaborate on the topic of cash flow in my blog 3 Areas You Must Prioritise For Business Success, so feel free to check that out at some point as well. One of the areas is the old faithful value proposition, and in fact, that makes it into a lot of my blogs highlighting just how vital it is to get that part right.
It may become evident to you straight away that 1 of the few ideas you have requires you to earn a lot of revenue quickly, and as you can’t guarantee that then perhaps that’s the one that needs parking. And remember because it has already got past the first stage of making sure that if offers value to your customers it does mean that this is an idea that you could still take up at a later date when your financial situation has changed.
We hope that you're finding this blog post useful so far - for more information on all things monetary, make sure to check out our Cash-flow, Revenue and Profits blog - a MUST-READ for all your business owners out there!
Which has a bigger market?
If you are at this point and still have multiple ideas then next it is worth asking which of them has the bigger market. Of course having a bigger market can mean more competition and so some people may opt to go for the smaller market. But just remember having less competition doesn’t necessarily mean more opportunity.
Do your research in the different target markets and see where and why your business could join it. Also consider whether you would have more of a voice in particular markets than others.
Perhaps you already know people or businesses in one of them and could therefore have a much-needed boost to help get you started. Perhaps one market is more accessible to enter than another. Are people more likely to try new things in one market than the other, is one market growing and the other dying, does one offer other potential opportunities in the future where the other does not? Ask as many questions as possible about the different markets. You may find that the market you go in helps solve the problem about revenue because there are possibilities to have multiple revenue streams in it - again this is in my blog 3 Areas You Must Prioritise For Business Success.
To give you an example, when I started up I wanted to be a wedding photographer. But the reality is that it takes time to get your name out there and people generally book well in advance. So when I started I was under no illusion that I would get many if any at all in my first year. I aimed to get bookings but sometimes people book their photographer a year in advance (sometimes even more!) so that would mean I would only have deposits but not substantial income. But the same market is also full of single people, couples and families that want portraits. Some couples want engagement shoots which is a great way for them to get to know their potential wedding photographer and get used to them being behind their lens. And of course, it is a market where my own family, friends and other associates are part of so not only do I have them sharing my name and services but they at times have wanted them.
There is no right or wrong answer in this question. Some will go to the larger market and try to take a bit of the big pie whilst others will want to venture into the smaller one hoping to become the leading brand of their industry. A lot will depend on your circumstances and on what appeals most to you…..
For more guidance on how to develop your hobby and passions into a sustainable, profitable business, make sure to check out our blog here - once you've finished reading!
Which most appeals to you?
This is the final question to consider and possibly the most important one to ask of yourself. We have all heard the saying that money doesn’t buy you happiness and the reality is that being your own boss isn’t always stress-free or a joy.
So many people get into running their own business because of the financial rewards but there is no point in being the richest person in the graveyard after working tirelessly at a job that you never enjoyed.
With any business idea, you have to consider whether your heart is really in it. To build a business you have to put in the hard graft, it comes at times with a lot of sacrifice, effort and determination. Those things are easier to do if you do something you enjoy.
Are you looking for new, professional-looking and unique photographs, tailored specifically to your brand and story? Feel free to check out my website portfolio and pop me a message - where we can talk about what you need, and how branding photography will benefit your business!
I would personally rather earn less money and do something I love than be dragged down, stressed out and miserable doing something I hate or find boring for more money. And if you have got this far with your business ideas and you are still trying to choose and you would be happy doing either then simply do the one that appeals to you the most. We all have to make these decisions to some extent or another in everyday life – what say I have off the menu or which dress shall I buy? - so trust your gut instinct and go with the one that is enticing you a little bit more. Maybe even ask friends or family for their opinion about which job could they see you doing and enjoying.
If you have got to this point and still have multiple ideas then get excited because you are clearly a visionary and I am sure that you will have much success in whatever you put your mind to.
I hope that this content was useful and it helps you make the right choice about which business idea to run with. If you have enjoyed it then why not subscribe to the blog, give it a like and share with others that you think it will benefit.
I would love to connect with you so feel free to follow me on my social media platform and drop me a DM if you want to chat further or if you have any questions. Don’t forget that I do branding and product photography so feel free to check out my page here or contact me if you need any help or my services.
Are you a small business owner?
Do you want to receive monthly business tips, designed to help you diversify and elevate your business independently?
Then sign up for our monthly business tips; they handily come through to your email – ready to be accessed from anywhere at any time, whenever you need them.
