Phase I: Initial Concept
I have an idea. The idea can be transformed into a money making effort. Should I nurture the idea, can it actually become a business that will be a going concern, and can I deliver product(s) or service(s) to a marketplace? I have decided to pursue the idea as a business.
During the Initial Concept phase of a business, the most important thing that can be done is to focus. Focus on those items which will get your product/service prepared to be accepted by the marketplace. Focus on the creation of a vision as to where you can take the product/service you are creating a business around. Focus on determining if there is a market need – who your target audience is – will they pay for this product/service – and how competitive is the marketplace? Focus on managing your costs to get your product/service to market and how to fund the operations until positive cash flow is realized.
Items to consider:
During the Initial Concept phase of the business, the following questions are some of the essential issues which must be resolved in order to continue moving our business wave forward:
Product/Service Considerations – What is the development time and cost to get my product to market? Do I have a plan for the purchase/lease of equipment/facilities necessary to develop my product and manufacture it? Will I need others to assist me in the development phase of the product? If so, how will I employ and pay these individuals? What do I need to do to protect my intellectual property (patents, trademarks)?
Market Considerations – Is there a real need for this product or service? Who is the target audience? Will they pay for the product or service? How much? What is the competitive landscape today & what will it look like in the near future?
Financing Considerations – How much capital will I need to make my venture cash flow positive? How am I going to finance my venture until it is cash flow positive? Debt/Equity? Friends and family, Angel investment, bank financing?
Business Structure – How am I going to structure my business – Incorporate, S-Corp, LLC, PC, etc.? This is important as it will have long-term consequences on how capital can be raised, how the business will be managed, how much control the owners will have over business management, and how the business its management and its owners will be taxed.
Business Plan – What will my business look like five or ten years from now? What is my true market opportunity? What kind of margins can I expect on my product/service? What is my go-to-market strategy? Who is my competition?
How We Can Help:
The executives at CXO Vantage have been there and done that. We can help you answer each of the above questions as well as many others that must be resolved while your business is in the Initial Concept Phase of the business wave. From helping you to understand the true costs of getting your product to market and becoming cash flow positive to helping you navigate the pitfalls of raising money, CXO Vantage can help you in all strategic and tactical areas as you negotiate your way through the Initial Concept Phase of the Business Lifecycle. To set up a free introductory visit with CXO Vantage to discuss your current situation and how we can help guide you as you start your business venture, call (801) 930-0842 or email us at email@example.com.