I have been right where you are… looking out the window wondering how I could make my dream a reality and start my own coaching and consulting business…
Would businesses and entrepreneurs buy my services? Is there enough demand in the market? How would I find my ideal clients?
Well, then I realized I have been through this exercise many times before in establishing new healthcare businesses for various corporations.
Same exercise: different business, 💪we got this!
I’m so glad you are here and so excited to see you are seeking the freedom you deserve in starting your own business!
The 5 strategies to validate your business idea or business niche have been tried and proven, researched, and practiced. They work if you do!
1. Identify the problem you want to solve. You are a passionate and kind person, and you realize either through your own direct experience or through gathering information, there is an opportunity to help others. Maybe you want to tutor kids that are falling behind in the remote learning environment, maybe you want to help people lose weight and feel great, maybe you have a passion for bringing diversity and inclusion programs into corporates and training settings. Once you have the problem you want to solve ask yourself: What is the value of my product in solving this problem? What differentiates my program from those on the market today?
2. Assess the market size and product or service demand. Ask yourself, is your product or service in alignment with the evolving human lifestyle shifts? Are you adding value to make lives easier based on the current and future societal challenges? For example, you wouldn’t want to be adding a service or product that focused on in-person board room meetings as we all know that is a declining market and business niche. Instead, how could you bring networking and collaborative ideas and services to a remote work environment?
Conduct research on total sales data, the number of service providers or manufacturers, and the projected CAGR in the service/product category. You want to be in a business segment that is projected to continue growing!!
3. Establish your competition matrix. One way to quickly determine if there is an opportunity to acquire market share is to look and research your competitors. Start a spreadsheet and research at least 10 competitors. Fill in category topics such as target audience, promised outcome, product/service details, what is unique about their offer, what is their offer missing, what do you love about their offer, what do you not like about their offer. In addition to reviewing competitors’ websites, you will also want to buy from competitors. This will give you a first-hand look into the full customer cycle and give you excellent insight into customer experience and get your creative market ideas flowing!
4. Create customer validation interviews. The best way to design your program is by learning directly from your ideal customers or clients. One of the best parts of being a business owner is that you get the opportunity to select your costumers just like they select your product or service! I know when I first started in market research, I generally had the pain points accurate of my target audience, however, I was not aware of all the micro pain points in the market. This allowed me to expand and capitalize where there was an unmet need!
How many interviews? At least 8 for a consulting or coaching service and at least 50 for a product or retail service.
How to conduct the interviews? Post on social media that details of what you are looking for and seek volunteers. Pay for survey volunteers or send survey links to your email list.
5. Generate a financial model and pressure test market price. Once you know that there is a market for your product or service, only you can know how much money or income you need to generate on a monthly and annual basis. If you know each client or customer is worth $100/ month, how many customers do you need? If the revenue line seems viable to support your income and lifestyle then move forward in figuring up start-up costs, investment, and operating costs to know what your profit would be on a monthly basis.
So, there you have it. No more excuses in wondering if your business idea will work! You have the steps to take to get your answer, go find your YES or NO!
Are you looking for support in taking these steps? These are the first steps in my Corporate Executive to Business Owner Program. If you are ready to learn more and have someone assist you in the business validation schedule a free discovery call today and stop wondering and start doing! Your freedom, health, and wealth are all on the other side of your curious procrastination!
Apply for a free discovery call here: https://anucoaching.com/discovery-call
Kelly Daubach, CPC, ELI-MP
Executive Business Coach for Corporate Executives
Helping corporate executives find clarity amidst the “great resignation”
Your Business. Your Vision. Your Freedom