Move your business idea from ‘mind’ to ‘market’ in six steps

Moving a business idea from its conceptual stage to its commercial phase is one of the most challenging tasks start-up entrepreneurs face. The greatness of a business idea is judged by its real world impact and profitability. This real world impact requires that some specific, necessary actions be taken to develop the idea and make it a real-life business. BusinessDay’s interactions with start-ups, small business owners and consultants led to these six steps to help budding entrepreneurs transition their ideas into reality.

Step 1 – a clear, simple business concept

Flirting with many ideas, that is, brainstorming for a business idea is welcome at the outset because it helps an entrepreneur to stay open-minded. However, too many vague ideas soon become too much of burden and get in the way of concrete planning. This is why the first step entails grabbing a pen and paper in order to gain greater clarity about which one of the many ideas you want to run with and to get as clear as possible about which business model will make the most profit. Having done this, if any major aspects are missing, extend your research online and on the ground. Get a business plan ready. Hit the ground running, avoid analysis paralysis.

For instance, if you intend to start producing a range of skin care products in Nigeria, you might want to ask and answer a few questions: where will you produce it and why in that particular location? How about ingredients and packaging? How about cost? Who will your customers be? What gap or needs are you meeting? How about your competition? These are some of the questions you need to ask and answer.

When the concept is clearer, simplify, simplify, simplify.

Step 2 – get your product or service ready

You need to be selling something: a product or service. Get the product ready, package it (this applies to services as well) so it sells well. Run some tests among friends, colleagues, or a small group of customers before launching it to reduce the chances of frustrating hiccups later on. Make adjustments and improvements as you go along.

Step 3 – Set up ‘shop’ and a good image

Set up a base for your business. You could operate from your house, a dedicated office or shop, or a simple website. Now, decide the name of your product and print some business cards so you are ready to network where ever you go. Make sure it looks neat because it represents your business. A few infrastructural questions must be dealt with at this point: identify your suppliers, prepare a delivery network, or build an e-commerce system that allows payments online.

Step 4 – deal with administrative matters

Having gone though Steps 1 – 3 and you are sticking with your plan; you will know you are on the right path. Next, you need to consider registering your business and getting a bank account to accept and make payments.

No matter how hard it may be at first, do your best to legally register your business. This is often overlooked by entrepreneurs in Nigeria and it comes back to haunt them. A registered business makes you more professional and influences customers to take you more seriously. Ultimately, it is the responsible thing to do.

Step 5 – promote and start selling

One thing you must do before and after registering you business is promote, promote, promote. Otherwise, what is the point having a great product or service nobody knows about. Billboards, leaflets may work, but for start-ups other avenues to promote their products and services abound.

Develop an online marketing strategy including a social media strategy. Do local exhibitions. Use worth of mouth, network and partner.

Step 6 – build local partnerships from the start

Local partnerships go a very long way in Nigeria in opening new opportunities, accessing new markets, and mitigating risks. This means you must get there early, engage, network at events in your industry and widen your horizon.

STEPHEN ONYEKWELU