Starting a new business is exciting, and potentially very lucrative. However, as Chris Sacca, venture capital investor at Lowercase Capital, an early investor in technology companies such as Twitter, Uber, Instagram, Twilio, and Kickstarter, says: “Ideas are cheap; execution is everything.” Your idea might be very good, but if you cannot execute on the idea, it will not get you far. Hence, it is very important to figure out a few things before starting your business.
Forbes has listed 5 crucial things to think about before starting your business, the first of which is the revenue model. It may seem obvious, but you should think about what you plan to sell, as well as how you are going to sell it.
For example, is it a single fixed-price product, a single fixed-price service, a software license, or multiple offerings? Moreover, do people purchase your product once, or is there recurring revenue that will come from the same customer? It may seem mundane, but it is essential to figure this out before starting your venture. Read the other 4 tips by Forbes on how to think about starting a business here.