How Do You Know If You Have a Good Idea for a Business?
Famously pointed out by Thomas Edison, “The value of an idea lies in the using of it.” Ideas turn into businesses – precisely! And ideas also make entrepreneurs. Peter Drucker believed, “Innovation is the basic tool of entrepreneurs, the means by which they exploit change as an opportunity for different business of service.” So, an opportunity should be perceived, resources should be organised and thereafter it should be aptly leveraged. But what is a good recipe for a strong business idea – that is the question! Rest of it is bound to fall in place.
Is it too easy to understand if you are possessing a good business idea? There are certain things that one can take into account to assess the same. The questions that you can ask yourself to know if you have a robust business idea are:
- Does it address a prevailing challenge?
- Is it scalable?
- Will it garner revenue in the market post the sale of the product/service?
- Do you have an honest gut feeling about the idea materialising in reality?
- Do you know your competitors in a comprehensive manner?
- Do you know your target audience?
- Is there an objectified goal in place to make the idea a success?
If you have answered all these questions, and have satisfactory responses to yourself, you most probably possess a strong business idea that can see the light of the day. The entrepreneurship curve is a steep one, and also a gradual one. Success might not come at the very onset of the operations, but growth will happen if all the separate components of success like idea, resources, and circumstances are in conjunction with each other. After all it is a new business model with new people, new market, new audience and a whole new product solving an explicit new problem.
On an informal side, you can get the idea vetted by your immediate colleagues, advisors and/ or mentors who has specific expertise in the business/ strategic domain. If you don’t find relevant people guiding you in this matter, adopt the idea of running a test ad (which includes minimal capital) and gauge the pulse of the potential audience. The analytics of the paid ad can fetch you insights that will help you determine whether your idea is a great one, ready to be well perceived by the industry as a whole.
Its time to act fast, and faster than you can think of. If you don’t put your idea in the right place at the right time, your idea might run in someone else’s mind the next moment, even with a use of the meagre 10% of the brain’s capacity, not to blame technological disruptions for it!
- Kathakali Basu
Manager - Manager – Content Marketing & Strategy