Here is Part 2 on assessing viability before starting a small business we look at points 4 -8. For Part 1 check here.

5 – Economic Mood

Your business’ success can greatly depend on economic mood: imagine starting a luxury real estate business at the start of the housing crisis. Gauge the state of the economy, and think of how it relates to your upstart: where are consumers’ mind right now? Are they cutting back, spending more time at home, concerned about the environment?

Even an economic downturn can be an opportunity if you can meet the mood of the consumer. If your business idea doesn’t fit the current trends in spending, think of ways you can tweak it to tap into today’s needs.

6 – Timing

Timing is crucial, especially for an upstart. Opening an ice-cream shop in January is a bad idea; opening Memorial Day can make it the place to be that summer. Do you expect your business to be seasonal? If so, time your opening to the strongest consumer demand. You’ll come out of the gates with a flood of new customers, customers who will come back for more.

7 – Marketing

Remember step three, where you identified your customer? Now you have to develop a marketing strategy to make sure these potential buyers know about your great new business. With today’s internet capacity, marketing can be relatively low-cost, using online coupons and mailing lists. Brainstorm ideas with friends and family, and look at what your competitors do to get new business.

Your local SCORE chapter, which consists of business counselors for startups, is a great free resource with counseling, classes and networking opportunities. (If you’re going into business, you must have a plan. Find out how to put this important document together in 4 Steps To Creating A Stellar Business Plan.)

8 – Continuing Cash Flow

Imagine this: business is booming, you’re on a roll and getting in more orders than you ever imagined. But you have to front the money for supplies and other costs, and you’re out of cash – just like that, your business stumbles because you can’t meet demand. This is a classic cash flow problem many new businesses face, and one that can be prevented with proper financial planning.

Before you open up shop, prepare a detailed financial plan; there are many guides available in places like the Small Business Administration. Now is the time to plan for your business’ first year, to make sure you can face any obstacle thrown your way – especially financial ones. (Don’t overlook the details when starting up a business. It’s the small expenses that have the potential to make or break a great idea. Don’t miss Business Startup Costs: It’s In The Details.)

Again I suggest you reread, digest and think of how your small business idea fits in with the points above. And as implied in the article success is not guaranteed and there are many unknown factors that you can be faced with along the way. But do not forget the details. Too many get carried away with what they consider great ideas & fail due to not looking at the viability of the business, in a professional business way.

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