How do you know if your business idea is good?
Every business owner asks the question: “Ïs my business idea good enough?” “Can it fly, does it generate enough money, can I make a profit with this?” “Is there a market for this, will potential customers buy it?”
Here are 7 steps in checking if your business idea is good
- First generate ideas. Look at all possible options.
- Then select some of the ideas. In this consolidation phase, try to select the most interesting and viable ideas.
- Then enhance your ideas and improve them. You add elements to your business idea with other elements.
- Perform a market test. Check with your potential customer types – ask for the buy and try selling it. This is the most important step. Lean startup theory says, start here, so you don’t waste time in selecting the wrong elements, and start with the customer first. If you feel you are not ready enough you can ask online for for feedback or try to ask your potential customers.
- Look for competitors, do they fare well with a similar idea? How do they make money?
- With this customer feedback, go back to your drawing board. Maybe your price is too high/low, you need to create better software or something else. Think again about creating value for the potential customer (what are pain points to solve with your solution, etc.). Apply this to your updated business idea.
- Think if this idea really fits your own background and interests. Check your personal motivation.
- Perform a market test, again. Retest in your market, iterate if needed. After a while you get enough feedback to enhance your business idea to a relevant customer proposition.
Revisiting your business idea, enhancing it and testing it is important in the beginning. This is called ‘validating your business idea’. This is a process you need to repeat several times. First, you start out with your idea, then look around, enhance it a bit, change it a bit, ask around, then improve your thoughts, again, until it starts being a more real idea. read on with ‘10 ways on how improve your business idea‘ here.