The seed stage represents the first steps you will take into small-business ownership, before you even launch your product or service. At this point in the process, your business idea is simply that – an idea or vision in your head. No money has been put toward developing your idea, no research has been conducted into the viability of your business when it comes to potential clients, investors, existing and future market conditions and their impact on the sustainability of your company, or even your existing financial situation.
This stage is relevant because the future of your idea depends on your willingness to take a step back and consider all of the aforementioned concepts and how they will impact the potential of your future company. Just a few of the questions you should ask yourself are:
- Can you see this idea getting off the ground with a successful launch?
- Have you tested your business idea with anyone, including potential clients?
- Do you have the right people around you to steer you in the right direction and ask questions that you haven’t thought of yet (business associates, friends, family, industry professionals)?
- Do you have the necessary capital to cover initial expenses until your business is launched?
- Are you prepared to see this idea through to fruition, despite any ups and downs?
It is important that you do not approach the seed stage alone. Perhaps more important than reflecting on your ideas and formulating a plan is that you also pool together as many resources as possible and ask a lot of questions before you attempt to do an official launch.