We work with highly talented and eager entrepreneurs every day that are looking to change the world. There is often a flurry of ideas, and they frequently turn to us with a straightforward question—do you think I can make this into a business?
It’s every entrepreneur’s dream to see their ideas come full circle to become a fully-fledged business. But how do you sift through all the great ideas, and know that it’s a viable business opportunity? Unfortunately, not all companies get off the ground, and you need to make sure you have a solid foundation before you get started. So, here are some essential points to consider to determine the feasibility of your business idea.
1. It’s Unique
By and large, it feels as though we have discovered almost every new idea. Still, we all know that our society is rapidly changing with the rise of new technologies and modern cultural differences. So there will always be a moment when you figure something out that no-one has before. This moment could be your ticket to success, and if you land an idea that you can’t find anywhere else, it could be the first sign of turning it into a successful business.
2. It Solves a Problem (Better than those out there)
This point is related to the first one. You cannot build another Google or Instagram (well, you could try, but chances are you won’t stand a chance against them.) But, if you have a product that is similar to others out on the market today, make sure that it is not just going to be a copycat. It should present an alternative solution that is an improvement to the original or solves a problem that hasn’t been dealt with before. One way to do this is to read through your competitor’s customer reviews and see what else you can do to respond to their concerns through your business.
3. There is an Existing Market
If you have an idea you believe in and that you think can make lives better, you now need to make sure there is a market for it. Identify your target market, create a prototype of the product, test it, and do research before trying to build a full-scale business. What you think is a good idea might not be to others. A trial period is a great time to digest any feedback and get as much as you can so you can evolve and develop your idea.
4. It’s Financially Viable
Unfortunately, to be a business-worthy idea, you need to be financially viable. You need to make sure your target market is going to buy your product or service in the price range you need to sell it. This viability includes production, business costs, and expenditure, as well as making a profit. In your market research, you can ask people if they would be willing to buy or pay for the services that you are offering at the price you think will give you profit. It is essential to ask this question at the planning stage because it would be harmful in the long run if you are going to increase the prices once you realize you are barely making a profit at your introductory price.
An excellent way to see if people are willing to do that is through crowdfunding. You are doing a test run if people will buy your idea at a specific price. If your product gets at least 50% of your required funding in less than a month, then you know you have a very marketable product.
5. You Can Project Profit Already
We know that it takes time for a lot of businesses to take off. But you should also be able to make a conservative forecast when you are going to start getting profit for your work. It’s good that you would want to make the world a better place with what you have, but you should remember that you are also in the business of making money, and for the bank or investors, a genuine profit forecast can be a good thing to get off the ground.
6. Everyone Tells You It’s a Good Idea
Continual praise is a very slippery slope, particularly from your loved ones. You may get a reaction such as “Why didn’t anyone think of this before?” and chances are, someone may have done it, but it just didn’t get to see the light of day, or it didn’t work out. But, if people you don’t know tell you that it is a good idea, there is a fighting chance that it is going to be a hit.
7. It’s Simple But Effective
The simplicity of the concept can blow people’s minds, and it can even be a selling point for your product. It should be something understandable and easy to grasp so that even if your idea has the workings of an intricate science project, its concept is easy to understand, and then people will most likely want to buy it. If it’s easy to see the value in your product or service, it makes it more sellable.
There are more things to check if your business idea is worth pursuing, but if you have these considerations down, then you have a chance of bringing out a successful product or service and a business-worthy idea.