From millennials to small investors, almost everybody is looking for new business ideas, but unfortunately, not all of them end up funding successful businesses. If you are itching to start your own business, you will surely need more than just an idea but how to pick a business idea.
This will not only help you stay passionate about your concept but will also help you stay on course about entrepreneurship in general. An idea that only appeals to you without going through proper scrutiny may not get you anywhere, or might at least require several major adjustments before you can make it work. It is important you thoroughly do your homework to determine if your idea can translate into a successful business and how you could also go about it.
We reached out to entrepreneurs and experts from other fields of life to find out what are the things you need to carefully consider when you want to convert your business idea into a good business. Therefore, the next time you have a wonderful business idea, ask yourself these 7 questions before you spend too much time on it.
Testing a Business idea (Is Your Idea Can Be Converted into Business)
#1: Does Your Idea Solve A Problem?
For several decades now, the best business ideas have been those that are, in some way, solving a problem. Your business idea should be providing a balm for some kind of pain, solving a problem, or making life more efficient, convenient, or affordable.
Probably you are building something to solve your own problem or that of your family and co-workers. But the fact is that if there is a problem that affects you and the people you know, then there are chances that it also affects people you don’t know. So, if your idea is providing a tangible solution to this problem, then there is a high probability you are cooking up something great.
#2: Are People Anxious to Get Their Hands on Your Product?
Just as you are, people also need to get excited about your product. If you have even a small number of users who love your product, it is a litmus test to confirm that you are on to something great, and you can look for ways to expand from there.
You need to start giving your idea a test by showing the prototype to your friends, family, and co-workers, and also to potential customers as soon as you can. When you do this, pay attention to their feedback. When you regularly get the word “love” from them, you are good to go on your idea.
However, don’t get discouraged if you didn’t get a yes from every person you approach. Don’t forget the process is about finding people that will eventually want to buy your product, and probably become the marketer and evangelist of the product. People who understand what you are after will, with their feedback and dollars, back you up before any investors to convince them that you are worth supporting.
#3: How Sustainable Is the Business Idea?
There are many things that go into determining if a business idea is sustainable or not, including its demand and supply. If your product or service seems like a completely new solution or offers a better solution than existing ones, there is a high chance it will go a long way.
Ensure you test the rope before you make your first climb in the business world to prevent future failure. Check to see if people are willing to pay for it. It is paying customers who validate if an idea has a chance for success or not. As said by Schroter, the co-founder and CEO of Fundable, an idea will always remain an idea until there is a paying customer backing it up.
#4: Are You Passionate Enough About the Idea?
You will be saving yourself a lot of heartbreaks when you invest in the right idea. To avoid several failures, choose a business idea based on your area of interest and personal strength. Don’t forget your business will likely be eating the whole of your time, so make sure it is something you are passionate about to make it successful.
Is the idea is something you truly care about, or it’s just something you want to go into because it seems to you like it would be lucrative? It is not always easy when you venture into a completely unknown business model so, ensure you do some brainstorming, talk to friends, or take surveys to help in this regard. You also need to ask yourself how long you will be able to survive in the business without making a profit.
#5: What Is Your Price Point?
According to founder and partner of the investment firm, H3 & Co, Charlie Harary, there may truly be many ways to solve a problem, but great business ideas do it in such a less expensive way than what the market will endure.
When you already know you are offering solutions to a legitimate problem in a scalable way, you also need to think beyond just the value it delivers to the world, but what people would pay for that value. Once you can determine the price, it becomes easy for you to assess if your solution is worth making a business or not.
#6: What Is the Market Size Like?
Your idea may never get to see the limelight without a large enough market. You need to be sure there is a niche market for your idea. You will stand a better chance for success if your business is an improvement upon what’s already on the ground, i.e a completely new response to a recognized need.
#7: How Will You Market Your Business?
This is a common trap for many entrepreneurs. Many of them only think about the solutions their business will provide and forget about how they will get their business to reach their target customers. Your marketing strategy will go a long way to determine if your business idea is going to land you in failure or success.
You have a better chance to turn your business idea into a successful business if you have a decent product and a solid go-to-market strategy. But even if you have a great product and no idea how to get it to reach your potential customers, it’s going to be a really tough road. “How to Pick a Business Idea” is the main focus for us.
Bottom Line
It is important you scrutinize your business idea before you start. This will help you minimize your chances of failure. The above questions are questions you need to ask yourself to determine if your idea could become a great business.
However, I also need to ask how realistic you are about your goals. You need to stay grounded and be realistic when setting your goals. While you may have a great, revolutionary, and original idea, there should also be a real, solid market business opportunity to make it successful. It’s important you figure out how you can market your product before starting the business at all. After Reading this Article you will be Understand that ” How to Pick a Business Idea?”.
