So you’ve got a new business idea and want to take it to the next level. First of all you need to evaluate your idea to see whether it’s worth going into before you throw your time or your cash into it.
This part is very important as some people have a great idea that they love and they jump into it without analysing it beforehand to see whether it’s a business that people want.
To evaluate your business idea you should check whether the following apply to it:
It meets a widespread need
The key question you should ask with your business idea isn’t how you can make money from this, but how can you help your potential customers. You can have the best organised and funded business in the world but if it isn’t benefitting any customers then why would they spend money on it?
A lot of people who want to be entrepreneurs watch Dragon’s Den thinking that the best way to get ahead in business is to event some fantastic product. While there’s definitely success to be had there, it’s not the only way. The problem with inventing something new, you’ve literally got to create your own market and convince people that they need this new product.
Sometimes the best and safest way to get ahead in business is to provide something that already is being done because at least you know there’s a market.
We’re not suggesting you copy off everyone else. You still need to stand out and make a name for yourself which is difficult. The obvious downside is that there’s more competition but there are also more clients and customers.
Ideally you need a business idea that is going to survive longer than a few months. You need to establish a need that will be there preferably for years to come and won’t die out.
If you base your idea on a fad, you have got no guarantee that you’ll last. For example, take fidget spinners, everyone seems to be selling them these days but would you ever open a shop exclusively selling fidget spinners? Probably not, because their popularity is unlikely to last years into the future.
It offers something different
While joining a big market has its advantages, you’ve got the competition to deal with. This means you’re going to have to stand out somehow and market yourself well.
You might be providing the same service but you need your own angle on it. Can you provide yours cheaper or with a faster turnaround? Can you make it more customer oriented or with a personal touch? Can you operate online? The key is to think about what the customer wants while maintaining stability for your business where you can.
It gets a positive reaction
It’s wise to test your business idea out on a few people just to see the reaction it will get. So ask friends and family but be aware of their tendency to be overly encouraging. Try to get some more objective opinions from business mentors or advisors or fellow entrepreneurs too.
If you’re new to this, it’s always a good idea to ask the opinion of someone who has been in business for a long time as they will have a better understanding of what works and the realities of running a business.
You’re passionate about it
While passion alone won’t make your business work if there’s no market need or sustainability, it’s an important ingredient in building a successful business. You need to be passionate about what you do or provide and the way it affects your potential customers. If you’re not really feeling it, you’re probably going to struggle to motivate yourself to get to work every day.
Building a business takes a lot of drive. You need to have a goal that your businesses success will help you achieve.
Are you testing out your business idea? What do you think the key to creating a great idea is? Let us know what you think in the comments.
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About The Author
An experienced business and finance writer, sometimes moonlighting as a fiction writer and blogger.