What makes a great idea? This is a question you have no doubt asked yourself multiple times.
You may have unique business ideas that seem great on paper, but do you have an idea if they’ll hold up well in practice?
We figured you’d like to know some foolproof ways to identify great business ideas and keep going till you find the perfect business idea for your tech startup.
In this blog, we’ll walk you through pointers on how to know if your business idea will work.
1. Your Business Ideas are Practical
Your invention idea may have many of the qualities of a good business idea, but there’s still a catch. Is your idea practical? To know if your business idea is good, you also need to consider this very important question:
Do you think you have a realistic and viable idea?
Business ideas, or any ideas for that matter, will remain ideas unless they are technologically and practically possible.
2. You’re Excited About Your Business Ideas!
First, check yourself for passion.
- Does your business idea excite you?
- Do you feel like you change the tech world with your idea?
- Do you think you will be able to help your end users with your final product?
- Do you feel passionate about your business idea?
Passion is everything when it comes to successfully launching a business. And if your business idea makes you feel passionate about executing it, step one of your checklist is complete.
3. Your Business Ideas Solve an Existing Problem
Business ideas should try to solve a problem that hasn’t been solved yet.
While it is relatively harder to come up with innovative ideas for unique problems, we can tell you that it is definitely worth the effort!
If you think your business idea solves an existing problem in the marketplace of your choice, you should definitely consider that idea further. If your products or services can address a niche problem, then that’s even better! Read our blog on how to do market research for a business startup.
If you’re catering to a niche audience, you won’t have much competition and you get to set the benchmarks easily.
However, you must ensure that your audience is big enough to help you keep up with your financial projections.
At the end of the day, your business should be all about trying to help your end users with technology. If you think you can simplify or enhance the daily lives of your users, then go for it!
4. They’re Easy to Explain and Understand
Good ideas are easy to communicate with others.
Of course, this is not to say that complex ideas are bad. However, if your business idea is easy to explain and can be picked up quickly even by laymen, then you probably have something good in hand.
Don’t forget to make sure that those who understand your ideas also like them and think they’ll turn into a great product. More on that later!
5. You Don’t See Anyone Else Doing it
Finding the perfect business idea is not an easy task. It’s not an impossible one, either.
If you come up with a business idea that no one else seems to be doing, then you might have a million-dollar idea!
The key is to hone your idea till it reaches its full potential.
As a novel concept, your idea will run into a few bumps and unforeseen hurdles, but at the end of the day, your aim should be to make people as the following question:
“How come no one else is doing this?! It’s brilliant!”
6. You See That Someone Else is Doing it Wrong
There are many businesses that have great business ideas, but are poor in the execution department.
Maybe they do not have the resources to improve their product. Maybe they don’t realise that they can innovate and improve their product. Or maybe a lack of competition made them complacent with sub-par products and services.
Whatever be the case, you can take measures to rectify the weakness of your competition through your own products.
So, if your product can improve an existing product in the marketplace considerably, then your business idea is worth looking into.
7. Your Business Ideas are Scalable
Scalability is an important factor you need to consider when coming up with the perfect business idea. You want to grow your business, don’t you?!
Scalability is the ability to increase the extent of your products and services without affecting your team’s performance and your product’s quality.
If you can’t scale your company, your growth will hit a peak and likely become stagnant.
To know more about the importance of scalability, you can refer to our blog on how to find a scalable idea for your tech startup.
8. Your Business Ideas Get Others Excited Too!
We’ve already established that you’re excited by your business idea.
Now, it’s time for the taste-test with a small number of people and then a larger audience!
Do others also find your business idea exciting?
Do your peers think you can turn your business idea into a profitable product?
Are you able to explain your ideas to others in a convincing way?
You need to run your business idea by two sets of people: people you already know and people you’re not familiar with. This will help you get objective and unbiased opinions about your idea’s merit.
It’s a great idea to get a focus group together to discuss the possible advantages and disadvantages of your business idea. After all, they are your prospective customers!
9. They’re Interesting to Potential Investors
Now, let’s move to the monetary aspects of your business ideas.
Starting your own business requires money. And lots of it! You’ll have plenty of bills to pay even before your product starts bringing in a steady stream of revenue.
So, having an idea that is easy to fund is a must have for successful business. This also involves convincing your investors that they stand to make money off of your idea.
Here are a few questions you need to anticipate from potential investors before they make the decision to invest in your startup business.
You can try to indulge in crowdfunding to determine if people are ready to pay for what you have to offer.
10. Your Business Ideas are Financially Feasible
Henry Ford famously said, “It’s not the employer who pays the wages. Employers only handle the money. It’s the customer who pays the wages.”
Which brings us to the next identifier of a good business idea. Will people pay for it?
You might be on the brink of changing the world, but you can’t do it alone. Ideas are good, but you need money too.
Check whether your business idea is financially feasible.
- Will you have the funds to back up your business model?
- Will your product be able to generate enough revenue to keep your business running smoothly?
- Does your cost-benefits analysis look promising?
- Do your financial projections indicate good news?
- When will you be able to break even on your initial investments and start making profits?
These are all important questions that you need to address before you can decide if your business idea is a great one or one that needs a little reconsideration.
11. Your Ideas are Not Easy to Duplicate
Your business ideas should not be easy to replicate. Or, before you know it, there will be cheaper knock-off versions of your product flooding the marketplace.
You can, of course, file for a patent, but it’s always better to keep an eye out for an idea that cannot be stolen easily.
In the end, your ideas can be copied (no matter how much you try to protect them from the paws of copycats).
Consider the wildly popular food apps, Uber Eats and DoorDash. They’re both working to make the same idea a reality: easy accessibility of food to all. But, you’ll notice that both food delivery apps have loyal patrons who enjoy the unique personalisation offered by one or the other of these apps.
In a nutshell, it’s all about how you present your idea tailored to your audience.
12. Your Business Ideas are Well Received at Events
Even if you start small, start somewhere.
You may have nothing but an idea or a prototype of your business product. This is enough to introduce your idea to the public and see how well they receive it.
You could start by putting up a stall in exhibitions or participating in tech expos. A simple Google search will reveal the popular expos for startups near you!
13. They Play to Your Strengths
You’ll most likely find a business idea within your own industry, which means you already know what’s up!
You’ll be well aware of the pain points of your end users and can tailor your idea to address those problems.
14. It’s Easy to Market Your Business Ideas
The right sales and marketing team can boost your business to the top. Provided you have a product that is easy to market, that is!
In order to connect to your audience across different social media platforms, you need a business idea that tells a story.
Audiences connect with businesses when they are also privy to the triumphs and struggles that got said businesses to where they are.
For example, a college graduate starting a tech company despite the hurdles lining his path is a heart-warming story that will definitely capture the attention of end users.
Your business story can be about more than just showing whatever challenges you’ve overcome. Wielded right, it can be a powerful tool that inspires other entrepreneurs to follow their dreams.
Stop wondering if your business ideas are good and start making notes!
It’s important to write down your unique business ideas as and when inspiration strikes or you might lose them in the commotion that is life!
If your business ideas meet all the above criteria, then you really might have hit the jackpot!
Wondering what to do now?
We’ll show you how to turn your business ideas into profitable products.