May 22, 2019
Think you have a great business idea, one that gives you all the right feelings, one
that’s going to change everything for you? Well, it could be the start of something
really brilliant! But before you start investing in it, you need to bear in mind
that there have been tons of other entrepreneurs before you who felt the same way.
Many of whom watched their ventures go bust before their eyes all because they didn’t
test the waters before taking their idea to the next level. Keeping this in mind,
we’ve put together 5 ways to identify whether or not you’ve got a great business
idea, check it out.
Does it solve a problem?
The first way to identify a great business idea is to check if it solves a problem.
It doesn’t necessarily need to be a problem that affects the masses. It could
be a problem that affects you or a few people you know. And if you’re business
idea solves this problem, there could be thousands of other people you don’t
know, millions even that could benefit from it.
Ask your friends, family & peers.
Take a general consensus of your idea from those around you. Friends and family tend
to be more supportive and mum will see merit in any & all ideas, which is why
it makes sense to ask peers, mentors & other entrepreneurs as well. Often, it
is views & advice from such parties that can be the difference between a failed
idea and a successful business.
Put out a test ad.
Find a designer and create an advertisement for your business. All you have to do
is rope in a friend who is good at Photoshop and a little capital to buy some
ad space. Put it up on Facebook and see if it gets any bites. If you do not know
anyone who can create an advertisement, you can try Google Adwords. Either it
will provide you with what’s known as a ‘click-through rate’ which tells the
number of people who clicked on the ad divided by the total number of people
reached through your ad. This will tell you if people are interested in a business
idea like yours.
Carry out market research.
Find people whom you think will be your customers and test your business idea/product
on them. You could throw in a cash incentive or free subscription/product offering
for those who volunteer. If the volunteers like it, it’s a green signal. Moreover,
they could provide you with feedback and ideas for improvement.
Ask your volunteers how much they’d pay for your product/service.
If you know roughly how much you can sell your idea for, you can work out how much
profit it can get you after considering all the costs involved. Even the most
brilliant ideas aren’t worth investing in if they can’t help you turn a profit.
If your business idea ticks all the above boxes, you have something worth building
on. And we at InCred would be more than happy to listen to your ideas and invest
in your potential. Hope this has been helpful, good luck and all the best.