Most common phrase I hear, “I have an idea and don’t know where to start”.

First, you need to determine if you have an audience.

Before you can entertain the idea of creating a business, you must do your research to find the size of your audience and calculate the opportunity that exists for your service or product.

So, who will buy this?

Drill down to the specifics, don’t just say “everyone”. Ask yourself – What must I own to want this? What situation must I be in? How old will I be? Where will I live? What time of day will I want it? Which seasons will I think more about this?

Example: Look at intelligent thermostats for your home. What’s their market? Their typical purchaser is a connected homeowner that enjoys managing life and home on the mobile phone. Homeowners. 30-50 years old. Someone that appreciates how their mobile phone is command central for their life.

Each of those variables narrows your market.

Now, take a product of service that is very specific. A gadget that is focused on BMW Motorcycle owners. First, there’s a small percentage of people in the world that even realize BMW makes motorcycles. Say this gadget is applicable to two of their models, which make up 5,000 units sold for BMW each year. The product is focused on a very specific and passionate group.  It’s likely you will sell a few thousand units very quickly and saturate the market of current owners. Now you are left with only new owners. How will your business survive on 5,000 units sold per year? What else do you have to offer the current owners once they have purchased your gadget?

Step 1: Go research your market.

#yourbusinesssherpa