15 Reasons to Validate Your Business Idea

We encounter quite a few entrepreneurs who have a great business idea. What they need, however, is to validate that it is a viable concept before they invest blood, sweat, and tears in their venture. As the saying goes, an ounce of prevention is worth a pound of cure.

Here are our top 15 reasons you should have a feasibility study conducted to validate your idea before you risk hundreds of thousands of dollars:

1. Identify if there really is a market for what you're proposing;
2. Assess the competitive environment to see who else is doing what you're planning to do and, if not, why is there no one else in the market;
3. Evaluate the risk of getting into the business, and the potential rewards;
4. Validate your sales and financial projections, which are important to investors;
5. Consider the consumer and the market's acceptance of your product or service;
6. Define, clearly, your product or service from the consumer's perspective;
7. Determine the strength of your management team so you can fill in the gaps;
8. Clarify the best options for moving forward as a result of comprehensive research;
9. Verify your choice of location, if appropriate, for visibility, accessibility and other factors;
10. Analyze factors and variables, such as rent, that impact your break even point;
11. Weigh your considerations for establishing your business legally;
12. Delineate your target market and demographic characteristics to help with marketing;
13. Compare advertising opportunities to reach your target audience most effectively;
14. Provide justification and validation for investors and financial institutions; and,
15. Lay the foundation for your successful and profitable business venture.

Your feasibility study takes time. If you decide to move forward when you've seen the results, the study will form the basis of your business plan.

To your success.

Practicing Cowboy Ethics

Back in the days of the wild west, the American cowboy had a code of conduct. Unwritten, until James Owen came up with Cowboy Ethics. Strange how appropriate it is for business owners:

1. Live each day with courage;
2. Take pride in your work;
3. Always finish what you start;
4. Do what has to be done;
5. Be tough, but fair;
6. When you make a promise, keep it;
7. Ride for the brand;
8. Talk less, say more;
9. Remember that some things aren't for sale; and,
10. Know where to draw the line.

Living each day with courage, as a business owner, involves being willing to make tough decisions and tackle situations head on.

Taking pride in your work means being good at what you do and seek perfection, and it involves confidence in the product or service you offer to consumers.

Finishing what you start and doing what has to be done need little explanation. There's a saying that if you don't have time to do it right the first time, when will you have time to do it over?

Cowboys had a reputation for being tough, and that can be easy. Being fair can be a challenge, and may involve making concessions to reach an agreement; it does not mean caving.

When you make a promise, you should keep it and if you find keeping it is next to impossible, perhaps you shouldn't have made it. Honesty is important.

Ride for the brand is what owning a business is all about. Your company is your brand and what you are in business for in the first place, riding on the path to profitability!

Talking less and saying more relates to the mantra to avoid telling people what you can do ... and show them! Let your actions speak for you.

What is not for sale in your business? The respect clients have for your ethics? And in your life? Your dreams and aspirations should never be for sale.

Where do you draw the line? How long would you keep an employee who steals from you?