Here we analyze several questions in regards to starting your own business and starting your journey as a young entrepreneur
Are there strong barriers to entry?
The barriers to entry are any obstacles that make it hard for a startup to enter the market. Startup entrepreneurs k
now that the going will be tough. It’s important to consider how easy it is for others
to replicate your product, mimic your idea, or steal your intellectual property. The worst thing that can happen is to pour your life energy into an idea only to have it stolen, copied, and sold — whisking market share right from underneath your feet. Choose a niche in which the barriers to entry will form a strong defense against future competition.
Do I have an innovative product/service?
When smart investors look for their next funding project, their eye is trained to identify first movers — products that sparkle with innovation. These are the kinds of products or services that explode into industries with unshakeable power. Innovation may be a buzzword, but it’s still important.
Do you have enough financial backing to design, build, test, and market?
How far will your money take you? Take a longview with your funding strategy. Your capital should include a sufficient amount to take you to a comfortable point in the possibly distant future — beyond the marketing phase.
Do I have a real, scalable business model?
The heart of a business it its business model, and that business model must
be scalable. With rare exceptions like Twitter, investors want to fund a business model
, not just a cool idea. You need something that has a real revenue plan. To really ensure its success, have a scaling plan as well.