Many people must have come up with various business ideas at some point in their lives, and you are no exception, whether you realize it or not.
Some people get a certain idea to solve a common problem that remains unrealized, and the person never seriously touches on this topic again. Other people generate an idea for a business and concentrate on it, trying to immediately take measures to implement it, but something does not work out.
Ideas come in different forms and have different scales. Most bad ideas can be recognized as bad right away. Good ideas can be good to varying degrees. In theory, a good business idea is one that solves a problem skillfully and does not have any significant flaws. But not every good idea can make your business viable.
For example, although the idea is good, it may not be cost-effective, which is an obstacle to significant profits. If you have a good idea, but you are not sure that it is sustainable and suitable as a basis for a real business, ask yourself the following questions:
Does my business idea solve common problems?
The first question you should ask yourself is a simple one. Think about your idea. Does it solve any common problems that the average person faces?
The first key is to solve the problem, not to introduce some innovation that no one ever needed. The second key is a common problem that your enterprise can solve. For example, if you invented a device that allows someone to play the accordion and fix a car at the same time, you probably won’t be able to reach a wide audience.
You can do some market research to support your idea, but if your product or service isn’t in demand, think twice before taking action.
Are people willing to pay for your solution?
You can do some market research to get the right answer, but even just by thinking about it, you can come to some conclusions.
Imagine that the idea didn’t come to you, and that instead someone else comes to you with it.
- Are you willing to pay for this person’s product or service?
- How much are you willing to pay for this?
These two questions should immediately tell you if this business idea has the potential to generate tangible income.
Is your business idea scalable?
Making money, believe it or not, is only the first step in the process. To thrive in business, your idea must have room for growth, ie. it must be scalable.
- Can your idea gradually expand and enter new markets?
- Can you come up with new, improved business models?
- Can you expand your business to other areas to make more money?
If your idea is not scalable, and it can only exist in its current form, it will not give you the opportunity to create a full-fledged business.
Is anyone else using this business idea?
This is an important point to check and one quick Google search should give you an idea. See if there are any other companies already using your idea. If it’s a great business idea, there’s a good chance someone has already thought about it.
If you see at least one competitor with a version of your idea that is better than yours, then your idea probably has little chance of being viable.
Can anyone else do this?
Imagine for a moment that no one before you has implemented this business idea.
- If you introduce it to the world and start selling something special or providing some useful and unique service, how easy would it be for someone else to replicate your idea?
- How easy would it be for them to make a subtle improvement in this area?
If your idea is not unique, or if it can be easily copied, the chances of it being exploited by copycats and idea thieves (working well within the law) are very high.
Can your product or service be in demand for more than a year?
This is an important issue for the sustainability of your business. Think and think critically about your idea. Is your idea something that comes and goes, or does it have a solid foundation and a long-term foundation?
If this is something unstable and coming, do not forget that your business will not work for a long time. Business ideas that will enjoy fleeting interest will not be successful in the long term. If you’re aiming for something big and solid, you need something that solves common problems on a long-term basis.
If you can confidently answer all of these questions and have done enough research, you have a good chance of turning your idea into a successful venture. Just remember, the ideas phase is only the first step of the whole process. From this point on, you will need to do an exhaustive research, write a business plan and start looking for investors. It’s a long and arduous process, but with confidence in your idea, you’ll be getting closer to the big start of your business step by step.