Before Launching a new Business: Test the Waters

Posted on Mar 25, 2014 in Setting up a Small Business, Small Business | Comments Off on Before Launching a new Business: Test the Waters

Its easy to get carried away when the light bulb goes on and a great business idea pans out in our minds. Experienced entrepreneurs warn: text the waters first. Here are some ideas of ways you can “test the waters” before diving in to a new business venture.

Check the Waters

Before getting in too deep, survey the scene. Are their already companies selling the same or a very similar product or service? How will your product/service be different and attract customers?

Survey the Scene

Talk to people: Hunter Walk, former YouTube executive suggests you ask people standing next to in a public place like a grocery store or coffee shop if they have a need for your product/service. He warns, if you’re not willing to go out and talk to strangers, you may not be up for the challenge of starting a new business from scratch. This will also help you practice and refine your pitch. You may find that you need a different way of describing your product or service in order to help people recognize their need for it.

Start Small: You may want to try selling your product on a smaller scale such as at local markets or on an easy to set up online shop on sites like Esty.com or BigCartel.com. Those initial months of selling and tracking will help you pinpoint what customers really want.

Try Email: Email contacting is another inexpensive way to sample potential customers. Research to find  contact information of potential customers and contact them asking for feedback. This method may also connect you with some potential investors. For example, if you want to start selling accounting software, you might look up some of the top accounting firms and contact executives for their feedback.

For more tips and help in starting your business, follow this link to get your free copy part 1 of Gary’s new book “Accidentally Self-Employed”¬†or call him at 858-549-8600.