Would it not be fun to live out our passions and profit from them? Many successful businesses start out as passionate pursuits. Individuals set out to share a passion or meet a passionately felt need. Passion is, therefore, truly at the heart of business. The challenge, usually, is in how to translate this passion into a viable business venture. Therefore, before you apply for that loan, there are a few steps you will have to take.
You must obtain answers to the following questions:
- Is there demand for the product or service?
- How will you generate demand?
- Do the numbers add up?
- How do the costs look like and how will you raise the initial capital?
- What would be the selling price and profit margin?
- Are there competing or complementary products?
Never count on passion alone. The viability check asks eye-opening questions that pierce beyond passions blinding effect. Due diligence is, therefore, necessary.
Develop a Business Plan
This is a detailed analysis of the business. It covers financial projections, A SWOT analysis and implementation timelines. When you apply for a loan, a comprehensive business plan is crucial. Financiers, in assessing the viability of a business, will require this document.
Master Your Passion
Do you know and fully understand your passion? Is it mature love or the initial romantic excitement? What are the details involved in actualizing your passion? One must excel in their passion or at the very least have access to people who have excelled. As a bare minimum, one must know all there is to know about their passion.
Take Care of the Bread and Butter
Every business has routine operations that grease its wheels. These are mainly administrative tasks such as book keeping, ordering for supplies and materials, communication and store keeping. Being routine and unglamorous, one can easily overlook them to the detriment of the business. An entrepreneur must take care of such matters. If one opts to hire for such items, they must have sufficient understanding for effective supervision.
As a start up, value passion and loyalty from those you bring on board either as employees, contractors or partners. Use of internships to asses such soft skills is advised. One may also opt for headhunting and referrals as opposed to open recruitment.
Learn From Others
Nothing is ever, truly, groundbreaking. Chances are that others share our passion and have taken it further than we have. Some, who may not have ventured into business, may have a greater mastery of the passion. Learn from them. Additionally, any general business and entrepreneurship knowledge that you can obtain is bound to pay off in the end.
Fan the Flame
Often times, people are promoted or work themselves to positions beyond their passion. A passionate teacher translates to a headmaster. A great physician becomes an administrator, and a good code writer to the CEO of the software company. Such occurrences distance one from their actual passion. One should always remember why they are doing what they are doing. One should consistently undertake their actual passion activity to maintain the fun in the new business.
Have a Long-Term Perspective
Most start-ups will struggle and incur losses over the first few years of business. Set up costs, marketing expenses and the challenges of creating demand and cornering market share for a new offering takes time and money. Breaking even will come eventually, but patience is called for if you are to succeed in business.
As is true for any business, attention to details matters. With these in place, you will be amazed at how the passion you only thought would be meant for fun turns into a profitable business. Get the right networks, have working strategies and take your passion to a whole new level.
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