The inception of a business idea is the most important step and can be a life-changing experience. It is therefore vital that an idea’s potential to succeed is assessed from these early stages. There are ways to gauge whether it is worth the next steps.
You're excited about your business idea and are now analysing your business model to ensure it is stable. Let’s have a look at what that entails:
If you take a look at the market you’re trying to enter and no one is doing what you’re thinking of doing, then that’s a great indication that there might be a gap in the market. Another great indicator is asking a mentor, a mentee and even a potential client what they think of your idea. If their response is something along the lines of “Why has no one ever done that before?”, then you’re off to a good start.
Draw up a strategy of reimagining your market if it is an old one. Your idea does not have to be new but your approach can certainly be new. You could be fulfilling a client’s need in a new way, selling a new product that reaps the same results or providing a much quicker, cheaper or efficient service.
Identify a problem that no one else has provided a solution for, then market how you plan to solve it. Most business ideas came from fixing a problem no one else was fixing. do make sure that you can do so efficiently or are at least interested in solving the problem in the first place.
Or can you afford to invest in it? If your business doesn't require funding in order to run then consider yourself lucky but for the rest, there are key checklist items you need to tick before you can start speaking venture capital with a potential investor. According to Startups Magazine those are:
Solving real problems
Market size and a scalable business idea
A solid team
Unique Selling Proposition
A winning go-to-market strategy
Some really good profitable small business ideas solve a very specific problem for a select market. You need to tap into unconventional ideas that albeit small, a particular segment of the population will buy into.
Can you explain your business idea to others in a few words? If explaining it requires little effort from you and can still be understood then it probably makes business sense. You should be able to answer what it is you intend to do and why you think it'll be a success.
One key factor in your business idea is passion. This is because like in any business venture, there will be challenges, and if your heart's not in it, passion is one thing that may keep you from quitting what could be a thriving business.
Now that you have identified if your business idea is solid enough for you to start a business. You may start looking at a good business plan template, a pricing strategy and perhaps shop for an easy and affordable way to build your website. Keep refining your business idea, check insights and trends of your trade and don’t be afraid to take the leap.
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