The first risk every entrepreneur must make is to believe in their big idea. The reality of business is that you can only know for sure if your idea works and appeals to the market once it’s already on the market. But while you can’t be a hundred percent certain before you take the plunge, this doesn’t mean you’re going in totally, completely clueless. There are factors you can look at to predict your idea’s feasibility. It’s just a matter of asking the right questions. These are the things you need to mull over to know if your idea will work (at least in theory):
What’s the problem I’m solving?
Every business idea has to meet a certain need. That’s where the demand comes from. Now, if you can’t summarize in a sentence which problem your idea is trying to solve, then there’s a good chance that you won’t have anyone flocking to your products or services. So if you don’t have a problem to fix yet, go back to the drawing board. Consider your target audience in the industry and come up with a detailed profile of them. This will help make the market needs much clearer. For example, you’re trying to break into the fashion sector, appealing to on-the-go working moms. Right off the bat, you’ll know that these people won’t have time to go through racks and racks of clothes in malls. You’ll understand that they’re into closet staples. And most importantly, they need affordable stuff. From these needs, you can already build a business idea — perhaps an online fashion store, accessible through an app or a website, no need to rummage through racks or a rent-a-business-suit business.
Who are my competitors?
Most new entrepreneurs get discouraged about competition. Precisely because they feel like they have no fighting power against the established brands. But here’s the thing, looking at competition can give you so much advantage. For one, it can confirm that there’s a market for your idea. Two, it will give you a roadmap of some sorts to follow. And three, it will give you clues as to where to improve on and how to differentiate yourself and gain a foothold in the market. So list down your potential competitors. From there, analyze the quality of their products or services, pricing, reputation, and marketing strategies. Consider these insights as you build your brand. If you’re indeed pushing through with fashion business, partner with small order clothing manufacturers as you develop and improve your products. Make sure to have key features that set you apart from competitors.
How long will it take before gaining profit?
The profitability of the business is still the ultimate measurement of the idea’s success. While you can estimate this with its appeal to the market, you also need to factor in the costs of sustaining the business idea. If you’re cashing out more quickly than you’re gaining traction, there’s a good chance that you’ll run out of resources before even hitting breakeven. And that would ultimately lead to the demise of your supposedly good idea. So as early as now, do some SWOT analysis on your finances. Do you need upfront investment for your idea? Would you need to do a pitch to investors? Basically, how can you sustain your business?
Will Your Idea Work?
Although you can’t be sure about how your idea will play out in the actual market, there are ways to weigh its feasibility. Ask these tough questions to yourself before you launch your idea.