How to Know if Your Business Idea Will Work

01 Aug How to Know if Your Business Idea Will Work

Starting a new business? How will you know whether it’s worth pursuing it? You need to answer these 3 important questions.

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How to know if your business idea will work

If you finally decided to branch out on your own after a million years of being a corporate slave, having a business idea is just one piece of the puzzle. There are so many reasons why being your own boss is beneficial but how would you exactly know whether your big eureka moment is going to succeed or fail?

Before taking that leap, here are 3 very significant guide questions that will help you delve deeper.

Has it been done before?

An article from the Entrepreneur website states this: “In the venture capital world, there are two ends of a spectrum in which to operate. One is a “blue ocean,” where there isn’t a single competitor in sight. Then, there’s a “red ocean,” a world in which competitors are more plentiful than seaweed. Ideally, you’d like to operate somewhere in between. Contrary to popular belief, creating an entirely new market can be a bad idea. It often requires market education, which means you’ll need a big marketing budget or some viral component to user adoption.”

It is a risky decision to enter a market that is 100% unoccupied. Ironic as it is, you would want competitors in your space.

How tight is the competition in my field?

You need to get to know your competitors so you have an idea where you stand. Study the market and your audience so you will have an idea what you can offer, which leads to the third and most important question…

Do I have a unique selling proposition?

If you answer this question with a confident “yes!” then it could be a good sign. Even if you have a cluttered market but you believe that what you offer has perhaps a better value for money, better aesthetics or quality, superior customer service, or a trademark that probably hasn’t been done before, then you’re off to a good start!

The takeaway

Anyone can have a business idea but not everyone can succeed. You have to confidently answer “yes!” to all of these 3 questions:

    • Has it been done before?
    • How tight is the competition?
    • Do I have a unique selling proposition?

Once you have everything set and you got your business model polished, financing your business can really be a challenge. There are many lenders that aim to help small business owners and start ups. Let me know if you wish to discuss further. Feel free to message me on Facebook and Instagram, email me, or call 0408 081 082.

Reference: https://www.entrepreneur.com/article/316038

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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