5 ways to find out if your business idea will work.
Education Loan Personal Loan SME Loan Tips & Advice Home Loan Two Wheeler Loan
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.