20 Simple Steps To Evaluate Entrepreneurship

You have the idea of starting a business.

1, make a detailed list of the general characteristics of the customers who will pay for you (for individual customers such as age, sex, location, interest, income, lifestyle, etc.); for company customers, such as industry, company type, company establishment time, total number of employees, annual revenue, which departments are interested, their customer situation, etc.

2, list and describe the characteristics of your product and service and the benefits that can bring to your customers.

3. Which areas do you want to sell in the first year? (this will determine your focus, how much investment you may need, how many potential customers you have).

4, which competitors are also being sold in these areas?

5, the prices of these competitors, namely, finding the selling points and prices of competitors, and trying to find wholesale and retail price information.

6, assess how much you want to pay in order to remain competitive.

7, evaluate why customers are willing to buy from you instead of buying from competitors.

8, list and outline the trends in the market and industry you start. (knowing that trends will help you decide where to go and what trends to use, which can be obtained from recent industry magazines).

9, what is the growth potential of the market?

10, do you have any way to let your customers know your existence? (advertising, yellow pages, direct mail, etc.)

11, combined with market situation, competition level, promotion policy and industry trend, the first year sales forecast is evaluated.

12, which governments are listed?

13, briefly describe your production / development / procurement process.

14, briefly describe the implementation process of your value.

15, evaluate your operational capacity in the first year. (how big the scale of operation, the upper limit of production / development / sales, and whether future growth has been taken into account?)

16, list your potential suppliers and backup suppliers to ensure continuous business.

17. List the resources and costs you need to start your business, such as equipment, personnel, funds, offices, technology, etc.

18. Decide what resources you need to buy, lease or rent (for monthly expenses).

19, list your financial strengths and weaknesses. (that is, how much money do you have for your company? Do you have enough money to support family spending?)

20, calculate the monthly cash flow forecast for the first year, that is, monthly cash inflow and outflow, or the cash that companies can receive every month and the cash they need to spend.