- For many budding entrepreneurs, the big question is usually how to tell if a business idea is viable.
- Here are ways to develop a business idea and determine if it will work out.
Every successful business begins as an idea. If the idea is good enough, the business will be more likely to break even and remain sustainable.
On the opposite extreme, if an idea is not strong enough, the business will either crash or remain unprofitable.
For many budding entrepreneurs, the big question is usually how to tell if a business idea is viable.
Here are ways to develop a business idea and determine if it will work out.
The competition: From the onset, your idea must be cognisant of potential competition.
This means that you must research and survey whether similar or closely related ideas have been previously implemented.
“It will be a huge negative if your idea will be executed in an overly competitive space. The product, the service, the market, and the targeted customers must not be overcrowded," says Kevin O’Leary, an entrepreneur and investor on the entrepreneurial investment reality show Shark Tank.
His sentiments are echoed by fellow investor and entrepreneurship author John Boitott.
He reckons that a major green light to proceed with the implementation of a business idea is the discovery that one or two organisations are operating businesses that border around it and that there is still a large market gap for the idea's prospective product and service.
What customers say: Your business idea must be based on what customers are saying. This means that you must examine what the potential customers are lacking in the already existing markets.