Have you ever had a business idea and questioned if it had the potential to be the next big thing? It’s normal to doubt and feel anxious if you have a great business idea. These early stages of planning are critical. Don’t skimp on brainstorming and put your ideas to the test. Here are a few questions to answer to tell if it’s possible, according to The Business News Daily.
Ways to know if you have a great business idea
1. Does it solve a problem?
Mike McGee, entrepreneur and co-founder of the web design school The Starter League (which has been acquired by Fullstack Academy), believes that a great business idea is something that solves a problem in some way.
“If there is a problem that affects you, your friends, family, coworkers, etc., the chances are that it also affects people you don’t know,” McGee said.
2. Will people pay for it?
According to Wil Schroter, co-founder and CEO of Fundable, paying customers validate ideas and determine which ones have the best chance of success.
“Until you have a paying customer attached to it, an idea is just an idea,” Schroter said. “Anyone can dismiss a simple concept, but no one can dismiss paying customers.”
3. What’s your price point?
Charlie Harary, co-founder and partner of investment firm H3 & Co., said that while there are many ways to solve problems, great business ideas do it in a way that is less expensive than what the market will endure.
According to him, once you have determined that you are solving a legitimate problem in a scalable way, you need to determine not only the value that it delivers to the world but what people would pay for that value.
“Once you determine the price, then you can assess if your solution is business-worthy or not,” Harary explained.
4. Is there a sizable niche market for it?
Your idea may never get off the ground if there isn’t a large enough market. You must determine whether your idea has a niche market. You’re more likely to succeed if your company improves on what’s already available. How can you tell if a niche market is a market? It’s a mix of research, gut instinct and personal preference.
5. Are you passionate enough about it?
To be successful, your business will most likely consume all of your time, so make sure you’re passionate about it. It’s critical that your idea is something you genuinely care about, rather than something you’ve chosen because it appears to be profitable.
6. Have you tested your idea?
Only by putting your business to the test on the general public will you know if it’s a success. You know you’re onto something if your target sample says your idea is fantastic and asks where they can get it, but if they are less than enthusiastic, it’s probably not as good as you thought it would be.
Lisa McCartney, chief “PLYTer” at instructional math board game business PLYT, advised, “Test it — not just with friends who would be too polite to speak the truth but with honest people who would make up your ideal target audience, and then listen to the feedback.”
7. Are you open to advice?
Your business idea may not be worth pursuing if you’re unwilling to change or adapt it to meet the needs of your clients. It usually takes a few iterations to get a great idea to market. Being a skeptic might be fatal to your business.
Angie Yasulitis, CEO and managing partner of The YaZo Group, said, “Success happens when you’re willing to listen and consider others’ advice.”
8. Are you being realistic about your goals?
It’s critical to remain grounded and realistic when it comes to pursuing a new business venture. However innovative, revolutionary, or even ahead of its time your idea may be, there must be a substantial market opportunity for it to be a success.
Talking about a concept without first putting it down on paper tricks our brains into believing that we are actually doing something about it. It’s always best to be open-minded to criticisms and improvement.
Related: If you want to learn more about overcoming your doubts, try reading 3 Ways to Conquer Your Fear of Starting a Business.