Business applications have been steadily on the rise in 2023, according to data from the U.S. Census Bureau, with over 451,000 filed in March alone. With the majority of this number attributed to small businesses, you may be one of the thousands of Americans considering a small-business idea of your own.Business applications have been steadily on the rise in 2023, according to data from the U.S. Census Bureau, with over 451,000 filed in March alone.
Once you know who your target customer is and what problem you’re solving for them, you can get their input directly. “What a lot of people haven’t done when they have a great idea — they haven’t talked to potential customers,” says Al Everett, a certified mentor of SCORE, a nonprofit that offers free resources to small-business owners. “Talk to people that are in your family or people you have a lot of respect for in terms of how they buy,” he recommends.
When soliciting feedback from potential customers and your network, find out where they currently shop, what they like and dislike about those businesses and whether they’d consider alternatives. Their honest reactions can be an indication of whether your idea has a place in the market. Next, total all your monthly expenses. This includes the costs directly related to the product or service your business will provide — such as materials, inventory, packaging, shipping and labor — as well as additional business expenses like rent, utilities, equipment, marketing, licenses, insurance and fees. ”Make sure you think about all your expenses,” says Vanessa Uteau, owner of Pazza Market & Cucina in San Diego.