5 Signs You Have a Great Business Idea
By Elizabeth Arenivar-Kennedy | LinkedIn, Medium
As an entrepreneur, you likely are preoccupied with different ideas all the time. Sometimes inspiration for business ideas is not the problem; it determines whether your idea is solid enough to act.
Starting a new business venture takes time and energy and needs to undergo periods of self-reflection to ensure the idea is realistic and viable.
The early stages of planning are essential. It is crucial to be critical of your ideas and ask for feedback from people around you. Be sure to brainstorm and put your ideas to the following tests.
Here are five ways to assess good business ideas:
1. Define the Problem Your Idea Solves
Does your idea solve a problem? At their essence, businesses are problem-solving units. Think about any business-like grocery stores that provide a place to sell many food items and household products conveniently in one place. Amazon takes it a step further by delivering products directly to a customer’s home. Netflix sells entertainment to solve the problem of boredom. And the list goes on.
Looking for problems does not require a unique process. All you gotta do is pay attention to any problem, inconvenience, or challenge you face.
This concept shows that business ideas hide inside problems.” If your next business idea solves a problem for people, you likely have an opportunity there.
2. Analyze Your Competitors
Naïve entrepreneurs may well believe that no competition is the easiest way to succeed. This is false because having zero competitors means you may have to spend a fortune on marketing. Also, you will have to educate your target audience and introduce your unique business model to them.
That is a risk if your idea is too fresh in the industry, and the market demand may not be there for the products or services you want to offer. To clarify, the absence of competition should make you cautious.
On the other end, the presence of too much competition might seem too oversaturated. The giants in the industry get a considerable share of the market, regardless of how innovative your idea seems.
However, if you choose to go forward and there are competitors in the industry, be sure to examine them. What do they offer? How does your product stand out against them?
Read about your competition, look for content they create in their marketing campaigns.
Analyzing your competitors can guide you through setting prices at competitive rates and giving you an idea of how to market your business venture.
3. Figure out the Numbers
If your primary motivation is for profit, the best business ideas are making the most money. Consider your funding and the price point.
Funding involves a budget strategy. It should focus on the need for production, labor, and other capital-intensive aspects of your business.
How will you gain funding? Will you welcome business investors, crowdfunding, or a start-up business loan? You will want to start your business idea at a low cost. Profitable businesses solve problems in a way that is less expensive than what the market endures.
For a price point, it is important to determine how marketable your business idea is. Suppose your business idea is undoubtedly solving a legitimate problem in a lucrative way. In that case, you should find out the value it delivers to people and how much people would pay for it.
4. Find a Mentor
Find a mentor in the industry, seek advisors from people who understand the growing pains a business endures. Having a mentor can give vital information to prepare you during a period of entrepreneurial growth.
Embrace the feedback and remain humble when engaging with a mentor. You will recognize the importance of asking for help and being open to criticism.
There are many ways to find mentors like networking events, social media platforms like LinkedIn and Twitter, volunteering, and even friends and family that might directly connect to the industry.
Once you gain a mentor, remain respectful of their time, and stay actively engaged. The more you invest in the connection, the more you can benefit from it.
5. Are your Passionate Enough?
Your business idea will consume your time and energy, so make sure you are passionate about the idea to make it work. If your idea is something you genuinely care about (and not something that you are just in it for profit), it is more likely to become successful.
Passion is the driving force to your success because you are entirely dedicated to making your business work and will be able to get through the growing pains of it.
Launching your business idea means you must create your own goals supported by the strategy and the initiatives you design. You will be working hours at a time to make your business a success.
When you think about your business idea, are you willing to work day and night for years until your business resembles the goals you made? Your passion for this business venture will excel you forward no matter the difficulty in the future.
Well, is it a good idea?
If so, take the following steps and begin the next stage in your business venture. Part of entrepreneurial preparation is analyzing the risks ahead and developing a solid strategy. A good idea could be worth the risks and present a lot more to gain. Will you take the plunge?
Thank you!
Your encouragement is truly appreciated! Should you find the insights we provide valuable and come across useful advice in the process, I kindly ask you to consider applauding or following us for updates on upcoming articles and resources. Your input and engagement play a crucial role in cultivating a dynamic community of business owners committed to achieving success.
