How do you go about assessing your business idea? Great ideas are huge business. As entrepreneurs, we all aspire to create "the next big thing". So, if you have experienced a flash of inspiration, congratulations! You have made the initial move. However, as any small business owner will tell you, these early phases can make or break a company.
One of the primary reasons why 19 out of 20 enterprises fail within the first two years is that the owner conducted no market research.
They made no effort to check the competition and how to differentiate their business from it. They believed that their idea was so brilliant that there would be no competition, and that all other business owners would simply leave the market to them.
They entered the market with complete assurance that they had discovered a niche that competitors had overlooked. Too often, the niche they were certain they would dominate had such low demand, or there was simply too much established competition, that the business they were sure would be successful failed, due to complete lack of interest.
What makes a business idea great?
An excellent business idea is more than just a "idea"; it's an opportunity with a plan that enables you to expand your customer base while remaining profitable and scalable.
Beginning a business is the simple step. Starting a profitable business is a time-consuming endeavor.
Every individual has unique strengths, weaknesses, and interests. And as an entrepreneur, it is essential to understand your own motivations for the inevitable times when you become stalled.
Some individuals adore the discipline of business and designing systems that generate value. For them, income is a means of keeping tally. Others are motivated by a problem, a pain point, or a passion, and they consider themselves as customers. They appreciate nothing more than seeing satisfied customers.
Here are some queries to ask about your business idea's founder's suitability:
Do you have strong opinions, specialized knowledge, or a story about your product category?
Do you possess critical skills that make you an ideal candidate for this concept? Perhaps you're a skilled salesperson who could sell retailers. Or, you have a design background that will assist you in constructing a compelling brand. Is there anything you're not excellent at that you could outsource or delegate?
Do you have a personal stake in the issue you're addressing or the audience you're serving? This is not necessary, but it certainly helps!
Are you able to generate content to expand your online audience (social media accounts, YouTube channels, email lists)? Some modern-day entrepreneurs begin by cultivating receptive audiences, which eventually serve as the business's foundation.
There are many ways to become an entrepreneur. Not everyone who has a profitable online business left their nine-to-five job and became profitable overnight.
Some of us enjoy testing the waters beforehand. Perhaps you are aware that you want to establish a new business, but you are unsure of its nature. This is where starting a weekend or part-time business comes into action. It is a low-risk method for experimenting with new ideas while maintaining a full-time income.
However, it is not simple to transform a side business idea into a profitable online enterprise. You return home after a lengthy day of work, spend the little time you have with your family and friends, and then attempt to cram in a productive session working on your side gig before going to bed.
It requires some mental exertion, but it is entirely achievable.
To have a complete understanding of your market, you must acknowledge that you do not know everything and conduct at least some investigation.
But the Internet makes it simpler than ever before to do so; you can do so today.
Conduct research on keywords. Determine precisely what individuals are looking for on Google, Bing, etc.
Consider the opposition. What are their words and actions?
Conduct current trends research. Notate the dates on which items were posted.
Utilize social media.
Utilize forums and countless customer reviews; this is where you will find the information you seek most simply!
Examine all press coverage and record the dates of the articles in order to identify trends.
You will also be able to evaluate market movement to identify trends over time – it's all there, waiting to be discovered.
You will have no trouble constructing a business in the correct niche if you have a deeper understanding of the market situation.
And, remember. you will be competing against 19 out of 20 enterprises that did not bother to do this.