Business ideas often defy logic, market expectations and common sense – yet that shouldn’t stop you from exploring any novel approaches if they fit with you and your vision for your venture.
An effective way to test the viability of your business ideas is requesting feedback from others and gathering opinions from specialists in your field.
1. It doesn’t solve a problem
Business ideas are conceptual ideas pertaining to products or services that can be offered for money, said Mike McGee, co-founder of web design school The Starter League (now part of Fullstack Academy). A good business idea should address an identified need and stand out among competitors, said Mike.
Business ideas must meet various criteria to be viable, including being able to generate earnings compared to costs and have the potential for long-term profitability. Furthermore, it must have demand in the market; otherwise it will be hard for investors to support your venture – an excellent example is Pixar who created a revolutionary form of animation which has since become industry standard.
3. It’s not generating buzz
No matter how difficult it may be to abandon an idea for business, you need to recognize when its pursuit isn’t worth your while. Seek expert opinions in order to obtain honest assessments as to whether your scheme has potential.
Business ideas often stem from everyday experiences or an observation of gaps in the market, but for these ideas to succeed they need staying power; otherwise they risk becoming short-lived trends that die out quickly, according to Zurbuch.
Your business idea must make people talk. Without this conversational engagement, there’s little point pursuing it further. If nothing seems to be happening about your new venture idea, perhaps it is better not pursued further.
4. It’s not scalable
An idea that’s not scalable will likely never grow beyond a certain point for various reasons – including not being profitable enough or needing an enormous infusion of resources.
Your business must be scalable if it wants to compete successfully in sectors dominated by fast-growing startups; otherwise, its lack of scalability will put it at a significant disadvantage compared to rival businesses that can meet increasing customer demand – or else risk failing altogether.
Example: If you possess skills in drone videography and are capable of taking stunning shots at weddings or other events using drones, this could become a lucrative and scalable business venture. But prior to doing this, you will require investing in necessary equipment and learning how to operate it properly.
5. It’s not unique
If your business idea isn’t unique, getting started may be more challenging than you anticipate. Even though you have an outstanding product or service idea, larger competitors with stronger credentials and larger markets could present formidable competition to get their foot in the door first.
To avoid this pitfall, look for ways you can improve existing products or services and this will enable you to stand out from competitors without needing to invest in something brand new.
Consider what problems you and your loved ones encounter daily and brainstorm solutions for these problems – this can give you the best opportunity of creating a profitable business that has long-term success; who knows? You might even make your living while doing what you love!