Just the other day, I was watching an old episode of “Martin” and found myself cracking up at a business idea conceived by Cole, one of the characters.
He came up with a unique venture called “Rent-a-Spoon”. The premise? Soup is free, but you have to rent the spoon to eat it. Absurd, right?
However, amid the laughter, I found an intriguing parallel between this fictional scenario and the real-world journey of an entrepreneur.
As a loan broker, I’ve noticed a common tendency among aspiring business owners to rush towards securing funding without having a fully fleshed-out and tested business plan.
In my line of work, I spend just as much time helping business owners get their loans approved as I do advising some that they might not be quite ready for that step.
That’s because securing funding should not be the first item on an entrepreneur’s checklist. Instead, we need to ensure our ideas have been thoroughly vetted and tested in the real world before we start hunting for funding.
Before you rush off in pursuit of funding, here are a few tough questions to ask yourself:
- Has Your Idea Been Battle Tested?
Have you tested your idea in a real-world setting, gained feedback from potential users or customers, and refined it based on their responses? There’s no substitute for field-testing your idea.
- Are You Solving a Legitimate Problem?
What’s the problem that your idea solves? Is it a significant issue that people encounter in their everyday lives? Most importantly, is it something they would be willing to pay for a solution to?
- Is Your Business Model Rock Solid?
How do you plan on maintaining a steady revenue flow after the initial investment is used up? Is your idea scalable?
Securing funding is a significant milestone in an entrepreneur’s journey, but it’s crucial to ensure our ideas are ready for that stage. Let’s aim to serve something so compelling that people can’t wait to come back for more, rather than merely handing out spoons.
Remember, fellow entrepreneurs, our journey is more akin to a marathon than a sprint. Let’s take the necessary time to build something robust and enduring. The world needs more than spoon rentals – it needs ideas that are thoroughly cooked, seasoned, and ready to satisfy.
Are you in need of a business loan, real estate loan, or business credit?
Click Here to Schedule a Consultation with Terrance to discuss your funding options today.