Assessing a new venture for viability – will it work?

So fairly recently I decided to try and increase my possible earnings by becoming a stockist of Stylecraft yarn (https://www.stylecraft-yarns.co.uk/).  This required an initial outlay in order to set up the account.  This got me thinking about what sort of things should we think about before entering into a new venture.

Initial cost

You need to think about your finances very carefully.  Many ventures will require you to make an initial outlay, in almost all cases there is no guarantee that you will get back what you have invested.  Therefore you need to assess how much you can potentially afford to lose if the venture does not succeed.  You may be very confident that the venture will work, and with any luck this will prove successful.  However you need to think in the worse possible situation whether you can actually afford to not get any return from your initial investment.

Your initial costs could include stock, equipment, training or employees.  These costs will all need to be calculated to give you a realistic initial cost total.

Advertising

How are you going to let the world know that you have started something new and that customers should check it out?  There are several possible ways that you can get the word out there without spending any money but it may be necessary to pay to publicise.  If you are going to need to get an advert in the newspaper for example then you will need to add this cost onto

Practicalities

It is fantastic to come up with a new idea but you need to make sure that you have analysed this prospect from all aspects.  You really need to break down exactly how this venture will work.  For example I looked at stocking wool therefore I had to really think about how I was actually going to sell the wool.  I decided where I would place the stock in the shop and also prepared my online presence to enable customers to browse and purchase online.

De-personalise

This venture is your idea and will become a bit like your baby that you will work tirelessly to try and make work.  However when you are this close to the idea it is difficult to get some perspective.  Using the wool example again, I knit and crochet so I have a real interest in wool.  However does everyone else in the world want to buy wool, well no probably not.  Therefore I need to be realistic in what my potential market would be. 

It is key to remember that everyone is different and have different interests so it is highly unlikely that your product or service will appeal to everyone.  Your mission is to put yourself in front of the right people in order to make an income.

Gut feeling

When I approached my husband with the idea of opening my handmade gift shop, he was sceptical.  He wanted facts and figures as proof that this new venture would actually work and be worthwhile.  With a new enterprise it is very difficult to definitely prove its viability before launch.  There are predictions and research that you can use in order to help you make the decision of course. 

At the end of the day I had a gut feeling that my little shop was going to work and I ended up acting more on that feeling that facts and figures.

Let me just clear up any uncertainty here, a gut feeling that something will work is not enough evidence to jump in.  There is no guarantee that a new venture will work because you felt that it would.  However at the same time if you are confident in yourself and your investment then you stand a  stronger chance of becoming successful.

Support

We all struggle with self-doubt or uncertainty.  As a small business owner or being self employed it is vital that you have support.  When there is so much responsibility and decision making on your shoulders it is paramount that you have someone or a group of people that can provide you a supportive environment. 

There will be times that you will be unsure of what decision to make and it will be or huge benefit if you have the ability to talk through what your options are.  They may not necessarily be qualified or experience enough to be able to make suggestions, but will enable you to soundboard your thoughts.  This will help you make a decision and make you feel supported in your choices.

A new business venture can be very exciting and when it works it can be extremely rewarding.  Just try not to get swept away in your idea and try to remain sensible in the viability of it working.  All entrepreneurs take risks and different people have different levels of comfort with risk.  It will end up being your business and it all comes down to what you are most comfortable with.

You may decide that jumping in is not for you.  However this does not need to be a permanent decision.  You could hold off on an idea until you have more finances behind you.  Or you may decide to approach your idea from a different angle.  For example instead of opening a bricks and mortar shop you may find that you could make your idea work in an online setting.

I will you all the best with any ventures that you are considering or have started on.  I would love to hear how you are getting on and what helps you make your decisions.  If you have found this post helpful you may benefit from reading about how to keep positive whilst being self employed on this post https://www.claireyatfairycrafters.com/how-to-find-self-employed-positivity-if-you-are-struggling/