New business ideas can be sensational, revolutionary, groundbreaking. But let’s be realistic for a second! People tend to get carried away with excitement at the thought of their brand-new, life-changing business idea and the success it will bring.
Starting a business is not easy. In fact, 1 in 5 new businesses fails in the UK each year. It is important to be critical of your business idea and obtain feedback from as many members of the public as possible.
Here are several points to consider if you want to ensure you have an effective business idea!
Solve an existing problem with a fresh solution
Before you launch into a business plan, ask yourself one question: Are you solving a problem people actually have?
It sounds too simple, I know! But the answer will determine whether you’re on track for a successful business adventure or doomed to fail. Think about it for a second! Every successful business is built on a problem. All products and services must solve a problem – otherwise, why would anyone want or need to purchase them? There needs to be a market need for what you’re making, or else what’s the point?
Make sure you have a business idea that has a market need and will be successful. Carry out extensive research into what type of people will benefit from the problem being solved and whether there is a sizeable market for your product/service. Even ask yourself whether you would buy your product/service idea!
Make use of google search intent
You can even use Google search to identify a good business opportunity! Google keeps track of what the public search for on its platform. If you type “How to” and see what drops down, this will show the most frequent asked questions on Google. This information can be great for showing business opportunities.
Go out of your way to ask for advice
Successful business developers will be open to suggestions and be willing to modify their business idea to fit what their target customers want or need. The majority of good business ideas need some tweaking to be successful. Being inflexible and closed-minded is a business killer!
Find a business mentor to develop your ideas for growth. Mentors will provide valuable learnings from their own mistakes and successes that can guide you in the right direction, and help you make transformational developments within your business that will enhance your business performance.
Assess the market
You won’t know if your idea is viable until you test it on the public. That is – people you don’t know!
One of the main dangers in the early stages of business planning is to rely on the opinions of friends and family! In most cases, they will be too polite to tell the truth. Therefore, it is vitally important to test your idea with honest strangers, preferably people who would make up your ideal target audience.
Do it yourself! You have to do the market research if you are to get the most benefit from this. Listen and talk to people, take their feedback onboard, and act accordingly.
If your target sample are excited by your business idea, then you know that you’re in the process of developing something of great importance and value. On the contrary, if they show a lack of interest, then your idea is most likely not as good as you thought. It is important to know when to walk away. Do not preserve with a failing business idea that does not excite or is not wanted by the public!
What makes YOU better than your competition?
Knowing who your competitors are, and what they’re offering, can help you stand out! Carry out an in-depth analysis of their services and products and monitor their pricing and customer database. It is important to ask yourself, is my business idea better than the competition? Is what I’m offering going to be better? If the answer is yes, then you will be in a better position to succeed!
Crucially, find out whether your competition is making money! In other words, is it a good, money-making sector to be a part of? This will minimize risk and avoid costly mistakes.
Finally, understand the key strengths and weaknesses of your competition, and use this knowledge to create marketing strategies that put you at a competitive advantage.
Which businesses get the most funding?
Research which startups are getting funding and see if there is a trend. If you discover a recurring theme that businesses within certain sectors get more funding, this is a great indicator that this industry sector has high growth and success potential.
Evaluate your capital
You will need business capital to launch your startup. Startup capital can come from a number of sources: personal funds, the help of family, banks, and private lenders. Outline how you will spend the money and how much money you expect your business to generate.
Develop a business plan
Start writing! If your business idea has been tested on the public, critiqued by a mentor, and offers something better or unique to competition, it is now time to start writing a business plan.
A business plan will:
- – Prove that you are genuine about your business idea.
- – Contain research of your competition and target market.
- – Identify an effective strategy for growth and uncover new opportunities.
- – Outline how your business will make money.
- – Determine your future financial need and provide an estimate of start-up costs.
- – Persuade investors to fund your business.
A business plan will help you take your vision and turn it into a concrete action plan for success!
Starting a business is time and energy-consuming, so make sure you’re passionate about your idea to make it successful! Also, be realistic and try not to get too carried away with a new business idea. Make sure you cover all the steps drawn out so that you are confident your business idea is viable and worth the risk.
If you would support and guidance in starting your business, please contact [email protected].