How do you make the best business decision?
In the course of running an enterprise, you’ll always encounter decisions that determine your path. Do you want to launch a brand new product? Should you join forces or buy the company of a competitor? Or, should you create new employees?
Most of the time, these decisions aren’t either white or black. That’s why they’re so difficult to come to. How do you assess all the crucial choices you’ll need to make to ensure that you’re placing your best foot forward. Three questions every company owner should ask to help to think about possibilities.
1. What is the issue you are working on?
Everyone has ideas that seem intriguing. What if you could offer the option of a monthly subscription for pet owners to make delicious pet food? Or, what if you develop an aggregator system for kids’ activities so that schools can offer classes after school?
There are ideas aplenty dozen, but only a few are genuine business opportunities. That’s the reason why less than 10% of startup companies are thriving.
The most important thing is to think about what problem are you solving? Do you have a solution to an urgent issue that people require solutions for, or do you think about something that would be nice to have?
In the case of meals kits for pets, Are you solving an issue affecting pet owners? Do pets try to cook their food and are searching for solutions? What might seem like an issue or a chance for you might not be for everyone else?
Bruno Marotta, the founder of Im-a-puzzle, shares his thoughts, “A family member of mine who enjoys puzzles with jigsaws shared that her family members wanted to solve them when traveling, but could not locate any solutions to accomplish this. This made me understand that there was a chance to develop an online solution for those who love puzzles.”
Before taking on any new idea, ensure that you believe that you’re solving a genuine issue.
2. Does it have enough size to be significant?
When you’re launching a company or running one, capital and time are your most precious assets. Every day that passes, you’re wasting time and money to achieve your goals.
In determining which choice to make, it is crucial to determine if it’s important enough? Of all the possibilities to invest money or time with your company, you focus on maximizing your potential.
This is particularly important when you’re starting a new company. What size is the market you’re trying to reach? If you’re planning to introduce an application that will help paleontologists find dinosaur bones, could it be a viable market? Do you think that’s the best method to utilize all of your energy and time?
When you’ve determined that you’re solving the real issue, you need to do the work of knowing how many people might be interested in your product and how many potential customers you convert or sell it to. Don’t limit your efforts to a single concept, either. Try this exercise using every idea or initiative. You’ll begin to understand the numbers on the most efficient utilization of your time and resources.
Assaf Cohen, the founder of Solitaire Bliss, says, “I knew I wanted to venture into the game industry. However, there are numerous types of games available to play. When I discovered that solitaire remains the most played game around the world, I knew that there would be a large user base if I created solitaire games.”
Consider if the possibility is large enough to warrant consideration. If it’s not, then you’ve already saved time and energy and can now move on.
3. What is the great way to measure success?
Before you jump into an idea, consider what’s needed to make it a success. Does it meet an income goal and reaching the right customers?
If you don’t know what success is, it’s a sign that you’re flying blind. What can you tell whether you’re on the right course and are correctly utilizing your resources?
In addition, measuring success shouldn’t be restricted to just one or two essential performance indicators but rather the time frame you reach your objectives. If hit, for instance, could mean going more than 1 million users, how do you define success if you were a decade before you reached the target?
Remember that you are working with minimal resources. Running your own business requires you to think of ways to make the most of this. Be sure to set a timer and define goals within a specific timeframe. If you cannot meet your goals within the time frame, it’s time to inquire whether it’s worth going this path and whether it’s better to change gears.
The idea of entering into an opportunity with a clear understanding of the metrics you’ll use to gauge the success of your venture creates accountability and makes you an effective business person.
Make your thinking more critical.
By asking these questions, you will gain an understanding of the whole ideas you’re considering. It will force you to consider your choices and gives you the most excellent chance to succeed.