6 Ways How to Check if Your Business Idea is Sustainable or Not
Almost everyone has come up with a business idea at some point in their life. There are people who think about it for a few days and then dismiss it. Whereas, some people like to take action and work on the idea to see if it would be successful.
Ideas come in many shapes and sizes. Most ideas are recognized as bad, not all ‘good’ ideas are created equal. A good idea is usually considered one that solves a worldly problem that everyone face, with no major drawbacks. However, some good ideas cannot sustain a good business.
For example; if you have a good idea it might not be as cost effective which could prevent you from generating a high enough profit to invest your time in. If you think your idea is good enough to implement it, then you should ask yourself these questions:
Is Your Idea Solving a Problem
This is the first question you should ask yourself. Think hard about your idea and figure out if it solves a problem that affects the average person. The first key in launching a successful business is to solve a problem and not introducing a product that nobody ever needs.
The second key is to focus on is the problem widespread – are majority of the people in your town / city or country having this issue and cannot solve it? Always do market research before you start a business so you can study who your target market is.
Will People Pay for Your Solution
This is the second question to ask yourself as you conduct market research on the idea. A practical approach to answering this question is to stop and think for a minute and imagine someone else came up with this idea. If they came to you to market the product would you be willing to pay for the service or product? How much would you pay? These are two fundamentally important questions to ask yourself to determine if the idea has the potential to make money.
Is the Idea Scalable
The next process you need to think about is the business scalable? By scalable we mean, does your idea have the potential to grow on a long-term basis. Can your idea expand to other cities or to new markets? Can you come up with various products or improve the existing product? Is there room to make more money from your business? If you answer “No” to al these questions and your idea is not scalable then it may not be worth pursuing as a business.
Does the Idea already Exist
Another question to ask is, does the idea already exist. Is there competition involved? You can search on google to find the answer to this question. If your idea has potential then I am sure there would be competition. I have noticed that most people give up on the idea if they see people already working on it. I always tend to say “So What”?
The best approach is to study your competition; the way they sell the product, pricing, customer service etc and see how you can improve upon it. If you are able to provide a better quality product, cheaper pricing and give outstanding customer service then definitely go for it. If you can’t do these three things then it’s not worth it at all.
Can Anyone Start this Business
Imagine this business idea hasn’t been started yet. If you start the business ask yourself if someone can steal and replicate the idea. How easy is it for them to replicate your product and make it better? If the idea isn’t unique or can be copied then there is high chance that you will have copycats very soon.
Can the Business Last for More than a Year
Is your business idea a fad or trend? Can you sustain this idea for more than a year or just a few months? Always remember fads don’t last long. Always create a business around an idea that can solve a long term problem with a long term solution.
If you have successfully answered all these questions confidently and have done your research you will have a good chance to turn the idea into a success. These questions are just the initial stage to get started. From here, you will need to do detailed research, write a business plan, create a prototype of the idea and look for investors. It is a long, tedious process. However, if you are confident in the idea, you will be off to a great start.