Establishment of a new business usually takes more than two years. How do you know in advance whether or not your company will be successful? The 10 questions below will help you to determine whether your business is just good, or destined to become an extremely profitable affair.
1.) Will people pay for it?
The customers who are willing to pay for your idea determine how successful it will be in future. The idea is just an idea until you start getting money for it from the customers. Any idea can be discredited, but no one can discredit the solvent customers.
2.) Does your idea solve any problem?
The best business ideas are those that somehow deal with the specific problem of their potential customers. If there is a problem that affects you, your friends, relatives and colleagues, the chances are strong that it is also relevant to other people you do not know — your potential clients.
3.) The price
If there are multiple ways to solve the same problem, a business idea that requires the least cost will be the most successful. Your spending must be lower than the market states. Once you have realized that your idea offers a scalable way to solve the problem, it is necessary to determine not only the value (importance) of your idea, but also to understand how many people are willing to pay for your approach in solving a problem. Once you determine the price of your product, you can assess whether your approach to solving a problem is worthy of the consumers’ attention or not.
4.) Is it scalable?
Great business ideas are the ones that can be easily scalable. Can your idea be enhanced by managing or automation? Are there ways to expand production? Many great ideas fail because the owner has never thought about how they scale and further develop their business.
5.) Is the idea unique?
Too many entrepreneurs believe that if the mere thought of the idea makes their heart beat quickly and their eyes sparkle, then the idea is great and they are on the path to success. Get back to reality, ask Google if anyone has ever used a similar idea and how successful his experience is.
6.) Is your idea attractive?
There is a simple method to find out whether your idea can be attractive for future customers. Create a simple website to see how online consumers are interested in your approach to solve the problem. This website should have the company name, logo and a brief description of the concept. It should also contain a form to allow visitors to join a waiting list to receive the product/service once it is launched. Collect email addresses from these potential customers, then send an e-mail with an offer to visit your website, register and share your idea with their friends and family. If the number of registrations on your website reach a few dozen a day, you’re probably on the right track.
7.) Are vendors interested in your offer?
One of the best indicators of the potential success is a common interest is whether your idea sparks the interest of external suppliers (manufacturers). If the suppliers are lining up in front of your door, you can be sure that you have found a “profitable mine.”
8.) Is it difficult to copy your idea?
The best business ideas can not be duplicated or copied easily. If you have a great idea, and the obstacles to enter the market are not serious, you can be sure that you will have followers. New companies need to take care of the essential differences or barriers (such as patents) to prevent attempts to steal or copy the idea and to protect themselves from unfair competition.
9.) Will your idea win recognition?
A wonderful business idea will obtain the recognition of third parties, such as investors, customers or the media. The recognition of those who are not directly connected with the original idea or unbiased market participants is strong evidence that your idea is truly exclusive, original and extraordinary.
10.) Will your idea have the space for further development?
The most successful business ideas are those that can meet customer’s needs for a long period of time. Entrepreneurs need to look at their business in two, three and ten-year perspectives to determine whether their product or service will be relevant in the future. Avoid being one of the short-term trends and the victim of the momentary demands. If you believe that your idea will be the answer to the problems of your customers, and it will remain profitable for many years, your business has the potential to become a successful lifetime affair.
About the author
Melisa Marzett is an expert writer willing to help people. Her business ideas and useful tips are published on many websites. Melisa is ready to have a chat at Google+. Find more of her articles here.