Do you have ideas for a new business? For entrepreneurs, it is often easier to come up with a variety of business ideas for new companies and more difficult to implement those concepts. A business concept is a bridge between an idea and a business plan. It focuses one’s thinking so that the entrepreneur can identify the specifics of his/her proposed venture. Converting an idea into a business requires thinking about how you will sell the product or service and who will buy it, the benefits of the product or service, how it will differ from others, and methods of delivery.
Starting from small investors to millennials, everyone nowadays looks for good business ideas, but it is only a few of them who end up on the right path. So, how can you know if your business idea is worth the time and investment? If you want to check your business idea and see if it is a robust solution for earning a sustainable income, consider these ten tips:
Browse Top Sellers
Look at websites such as Amazon and Takealot to get some idea of what is selling. If you have a product or service in mind, take a look around to get an insight into whether this particular item will sell or not. The first thing on your list is seeing if the category you are considering is existent on this website. If it is, your next step is to check whether this category of products has a vast number of competitors. The more companies there are, the bigger the demand for the product is.
Use Google Trends
Google Trends (https://trends.google.com/trends/?geo=US) can help you get a bigger picture of the business idea you are considering. By checking out the latest trends, you will easily validate the demand, which is a crucial factor in your decision about starting the business.
Build a Minimum Viable Product
A minimum viable product or MVP is the simplest way to check your business idea. According to Eric Ries, an entrepreneur, and author of “The Lean Startup,” an MVP is ‘the simplest form of an idea that you can sell as a product.’ Having a simple version of your product for testing in the early development process is crucial if you want to make the necessary changes before the significant investment.
More about Lean Startup Methodology:
The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. The Lean Startup method teaches you how to drive a startup – how to steer, and when to turn; when to grow a business with maximum acceleration and perseverance. It is a principled approach to new product development. Too many startups begin with an idea for a product that they think people want. They then spend months, sometimes years, perfecting that product without ever showing the product, even in a very rudimentary form, to the prospective customer. When they fail to reach broad uptake from customers, it is often because they never spoke to potential customers and determined whether or not the product was impressive. When customers ultimately communicate, through their indifference, that they don’t care about the idea, the startup fails.
Using the Lean Startup approach, entrepreneurs can create order, not chaos by providing tools to test a vision continuously. By the time that product is ready to be distributed widely, it will already have established customers.
Build a List of Customers
Use various tools and methods to build a list of potential customers that will purchase your product or service. It will not only help you determine if your business is worth giving a shot but will also prove to be very beneficial once you decide to launch.
Run the Idea by Your Target Customers
Once you have an established for business, make a prototype and take it to the potential audience. Select the most appropriate method – speak to acquaintances that would be interested in the product, conduct a survey or even ask for help on the social media groups with the goal to check your business idea. It is my opinion that you need to identify people you know to be skeptical and critical.
Test the Product on the Social Media
One of the critical things to take into consideration when crafting your business plan is the importance of social media. Once you get the word out about the product or service, you will get information on how much interest this produces with your target audience. You have to make engaging social media profiles with high-quality content. In this case, you can use such tools as Grammarly, Pocket and Hemingway App.
Get an Expert’s Opinion
A wrong investment can present a severe failure, which is why you must check your business idea carefully. When in a struggle with various business ideas, get the opinion of experts who can advise you on which business to start and how to promote it.
These would include Business Advisors, Mentors (https://www.linkedin.com/in/thommieburger/), Strategists, and other successful entrepreneurs.
Use Landing Pages to Check Your Business Idea
Test out how well you can reach the target market and convert them into your customers. Conversion rates’ market testing is the best way to establish how your numbers will work with people and if these numbers are viable.
Ask People to Pay
If you test your product or service on friends and acquaintances or even people you randomly found on the Web, they are very likely to give you an email address or subscribe to your website. However, the best way to establish if they are interested in a product is if you ask them to pay you money for the product or service.
Know the Competition
Of course, big competition indicates high demand for a product or service, but this can be a cause of many headaches that are about to come. Research and study the industry to analyse the best way to present your product since big competition means that only the best marketers make sales. Once you establish how to promote your product or service in the best way, you are ready to beat the competition.
Starting a business is a scary thing to do, especially if you are not experienced or trained in business planning. Even if you are, chances are your idea will fail due to a small number of customers, bad marketing strategy or enormous competition. However, if you make sure that your business idea is solid and you know how to make it happen, you are only a few steps away from making your dreams a reality.