Is Your Business Idea Viable?

Starting a business is exciting, but before investing time and money, you need to ensure your idea is viable. A viable business idea has a real chance of success. It solves a problem, has potential customers, and can profit. 

Here's how you can check if your business idea is worth pursuing.

Business ideas that address genuine problems become the most successful. People pay for solutions, which can be either products that simplify their lives or services that reduce their time needs. Your idea requires evaluation of the problem it solves as well as the affected population and their willingness to pay for a solution. Your idea will encounter difficulties in attracting customers if it fails to solve genuine problems.

A great idea means nothing if no one wants to buy it. To understand the market, start by identifying your target customers and studying the competition. Research existing businesses in your space and analyse how you can be different. Also check market demand by using tools like Google Trends, social media insights, and industry reports to gauge whether people are actively searching for solutions similar to yours.

In solving a business problem, you must be able to do so in a way that is unique so that customers turn to your product or service. Take some time to think about why your solution is unique. Try using a technique they called the "seven whys”. Ask yourself the question "Why are we unique?” and then, when you get the answer, ask yourself, "Why?” seven times. When you get to the end, you will likely be honing in on why your business is different. 

Obtain the advice of colleagues or friends that you consider to be smart business people. Keep in mind that this is not necessarily your best friends or the people you are closest to, but rather those that have business sense but will also be honest with you.

Competition is a sign that demands exist, but you need to understand what sets you apart. Analyse your competition to identify what they offer, how they market their products or services, and what their strengths and weaknesses are. This analysis will help you position your business uniquely in the market and offer something different from what is already available.

Understanding why other companies have succeeded or failed in addressing a similar problem will give you great insight into the chances for success. Try to get a sense of what worked and what didn’t work. You might even reach out to former employees of those companies as they may have great resources to give you a sense of the market.

It is important to have access to resources that will help you down your path. These resources include basic technology such as task lists, simple accounting for billing and payment, and a variety of other software programs that you may need. In addition to technology resources, it is extremely helpful to have access to advisors or friends with business experience, especially experience with start-ups or new ventures. 

You must be crystal clear about how your business will make money. Specifically, how are you pricing your product and service, and how will that approach ultimately lead to revenue and ultimately profitability? If you cannot clearly articulate this, then go back to the drawing board because this is essential.

Your business may require only a little or significant capital, but in either case, you must be able to show how you will get access to the capital. You may provide this capital yourself in the beginning, but you must have a plan for how you will obtain that capital. Talk to your potential sources of capital, which can be friends, family, angels, or more sophisticated investors like venture capital firms. In any case, you must have thought through where you will get the money to get your business going.

Building a successful business requires you to test your idea, followed by market planning and market analysis. Your business idea demonstrates potential success when it addresses genuine problems, finds specific customers, and generates money. Before allocating major resources, you should validate your concept because it will protect you from costly errors while improving your odds of achieving success.