Many first-time entrepreneurs are so excited to start their new business that they don’t take the time to see if their great ideas will actually fly. They’re also overly positive, optimistic and confident about their new business idea.
Achievability Analysis helps you spot holes or fatal flaws in the business idea before you invest some savings and dive right in. It’s like running your business on paper first to make sure you’ve planned it out properly, thought through your business model critically, tested your business concept with potential customers, answered fundamental questions ahead of time and achieved a higher level of confidence about your chances for success.
Think about how much easier it would be to make changes to a business on paper than on a business that’s up and running with real customers and real invoices needing to be paid. Try increasing the price of a cup of coffee in month six of operations after finding profitability too low — your customers won’t be your customers for very long! Or what if you find out that there just aren’t that many buyers for your new product that you have 2,500 cases of? Or what if your biggest competitor responds swiftly when you arrive on the scene, dropping their prices and driving you out of the market?
These are all real life examples of small business failures. But you’re smarter than that. That’s why you’re here! If you spend the time prototyping and testing now, you’ll know the likelihood of your success sooner and you’ll be able to make critical changes to your strategy before you open your doors.
A thorough Achievability Analysis takes time, patience and objectivity. You may find out at the end that there’s no way you could turn your idea into a profitable business. It may sound depressing, but it’s better to find that out now than $50,000 of personal investment later. On the other hand, you may find out that there’s a huge market and no competition for your product or service and that you should consider a more aggressive launch to secure a dominant position in the marketplace.
The point is — and we can’t stress this enough — you should know if your business will succeed before you start it. By taking the time to prototype, research, and analyze your business idea thoroughly, you’ll improve your odds of success. And that’s never a bad thing!
Many first-time entrepreneurs are so excited to start their new business that they want to open their doors right away. This sort of passion and excitement is an admirable and necessary quality for an entrepreneur. However, it’s just as important to subject your ideas to a comprehensive Achievability Analysis to see if it has any potential of succeeding as a viable, profitable business.