How Can I Tell Whether My Business Ideas Are Good or Bad?
With millions of businesses being launched every year, it has become increasingly difficult to come up with an idea that the market has never seen before. However, even if a similar service or product, you can still put your own spin on it and use that as your unique selling point. Which if executed well can beat out your competitors. Therefore, today we are going to talk about how you can tell if your business ideas are good or not.
Are Your Ideas Solving a New Problem?
Because of the dynamic nature of markets, the focus should be on where consumers’ needs are heading. Catching the right consumer trend can massively improve the likelihood of you reading the reading and solving a real issue for consumers. This is one of the perks of being a startup, they are more agile they larger corporations that must jump through corporate hoops to make the changes of immediate change that the market would like to see.
Apparently, consumer trends suggest that people are being more conscious of how they shop. Buying from local providers and using digital tools to facilitate this connection. With those tools in mind, think about what difficulties customers might face – perhaps the cost of sustainable goods is too much for them. There could be a lack of home deliveries offered or their cybersecurity is not up to scratch.
To understand if your service or product fixes the issues users face, ask yourself “Can I clearly explain my business idea and why it has value in today’s market?”. If you cannot simply explain that answer then that might tell you that you have not found your niche yet. Use this thought experiment to refine your business proposal. It will help you better understand what your product will do for your intended market.
Are Your Ideas Solving an Existing Problem in a New Way?
There are plenty of ineffective solutions to issues already present in the market, so compare your business idea to what is already in the market. Your product or service just needs to be able to do better than your main competitors. You do not have to reinvent the wheel, just make the wheel turn smoother. This could even look like undercutting the competition with the promise of similar if not better quality. Many companies have employed this strategy and if they have the right margins, they make waves in their industries.
If your business idea is more focused on the business-to-business market, focus on demonstrating value. This way, after many members of that organization have heard your pitch, they can all see the immediate benefit. It might also be smart to practice this pitch in front of a variety of different organizations first. This way you can better understand how your ideas that seek to solve a business problem in a new way might be read by that kind of demographic.
Do you have a Head Start?
You might think your solution is going to change the whole landscape of the market but that does not mean you have a head start against your competitors. You need to pioneer your idea and do what you can to reproduction your model. If done right, you will become a market leader before anyone else.
You need to ask yourself; will your competitors easily catch up to your product or service? Or will you be the only one with a functional service or production for a few months? If your core competitors are huge, funded businesses, the development time exponentially shrinks for them because of their greater access to resources. So, focus the time you have on development and production. Do not forget to protect your idea with an IP or trademark.
Continue to validate the results you get from the market, taking all feedback on board to keep your development and production up to date. Being quick to adapt is one of the best weapons a small business has against the big boys in business.
To conclude, figuring out if your business idea is good or bad comes from an accurate assessment of the market. Is your product or service solving a pain point? Research and feedback will go along way to help you adapt quickly and best current industry leaders. The agile nature of a small business should be fully utilized to create the best result for the market. With that in mind, you have good odds of succeeding.