10 Ways to Tell if You have a Great Business Idea
Think you have an idea that will make a great new business? Fantastic; you have the hard part out of the way. That is, if it’s a good idea. Here are ten ways you can tell if your business idea will be a success or a flop.
- It solves a problem
If there is a problem affecting you, chances are, the same problem is affecting people you don’t know. You want to sell your idea with the intention of making someone’s life easier, including your own. It can be something simple, or complex; it all has to do with your idea.
2. People will pay for it
Your idea might solve a problem, but that doesn’t mean people are willing to pay for it. Sure, a toilet seat that closes itself sounds useful, but people aren’t going to spend $50 on it, if they already have one they can close themselves (or leave open, if they wish).
3. It comes at a reasonable price
Speaking of price, the amount you charge for your goods or service should be something you think about before putting it on the market, not after. It must be affordable; if you have an invention, but it costs more to make than what people are willing to pay, then you need to rework your idea and find a cheaper way to build it first.
4. It is better than the competition
Depending on your idea, there might be businesses out there doing something similar. Your idea needs to be more marketable than theirs. There are a few ways to do this:
- Lower production cost / lower price
- Higher quality product or service
- More convenient, or higher availability
- Better discounts or bundle deals
- Any combination of these
Your business needs something the competition doesn’t have. Otherwise, what would stop your customers from going to them instead of you?
5. You’re passionate about it
If you lack the luster to get your business off the ground, then it will forever stay grounded. You must invest time and energy into making this happen. Since you’re reading this article, chances are, you’re already passionate about your idea. The problem is, staying passionate. Many people lose interest after a few months; you must be determined to do your best at it.
6. People are interested in it
Test your idea. Not just on friends, who will tell you what you want to hear, but on honest strangers. Pick your target audience out of a crowd and see where it goes. If they say your idea is great, and ask how soon they can be a part of it, you may be onto something. If they don’t seem to care or give you negative reviews, ask them what you can do to make it better.
7. You can take advice
After testing it, if you receive any constructive criticism, you need to be able to apply it. Some people are stubborn and insist their critics don’t know what they’re talking about. You must not think this way; it’s a business killer. They are your potential customers, and you must be able to adapt to fit their needs.
8. You have a marketing strategy
Putting your product on store shelves is not usually enough. You need to get people interested in it. You have to reach out, you have to advertise, you have to get people to come back over and over. Thinking these things through as early as possible can make the process much easier down the road.
9. You set realistic goals
It’s easy to get excited and see the potential your business can pursue. The goals you set early on will take years to achieve if you set them too high, and that will hurt the passion you have for it. Make sure your goals are reachable within the first year, and they apply to a market you can reach now, not just in theory.
10. You can pitch it
Your business could be the first step to solving world hunger, but it won’t gain any traction if you’re the only one who understands it. One good test for this is called the Grandma Test. Explain your business idea to yourself, as if you were talking to your grandma. Keep it short and simple. If it’s too complex, try a different approach, or seek out some business consultants to help you.
For help with any of these steps in your idea, the business consultants at Tungsten can help. These days, 90% of all startup businesses end up failing. One of the main reasons is people try to tackle all 10 of these goals by themselves. Let Tungsten help you, and we'll make sure you’re in the 10% of startups that succeed.read more at ...... https://plus.google.com/109818552054916899308
