As the New Year unfolds, enterprising minds are already thinking about what new venture to undertake, and rightfully so. New business ideas are always needed to keep the market fresh and invigorated. However, not all of their ideas will work. For every successful concept, there is an entire graveyard jam-packed full of failed ventures. This is the reality each and every entrepreneur has to face.
To keep your business ideas from failing, you must put every potentially viable business idea through a battery of tests in order to determine its chances of success. Although your idea won’t guarantee you profits and prestige after passing the tests, it will nonetheless give you how the venture would fare once it is up and running.
Here are a few questions you should ask yourself about your business idea, a preliminary litmus test, if you will. (Take note, this is not a substitute to a full-blown business plan and analysis; be sure to run it through actual number-crunching later on after having tested the idea.)
Has It Been Done?
Don’t fret if your concept is not 100% original. Hardly anything is, and originality does not guarantee lucrativeness. Knowing if there’s a precedent or an analog will help prepare you to launch your own version.
If it has been done, take a look at what your conceptual predecessors did. This will help you avoid making mistakes and missteps that they have already experienced, and you can adapt their best practices and improve your own. Google didn’t invent the search engine, but they sure developed a heck of a better one than the companies before them.
If your idea has never been done before, you should still make an effort to research and find related concepts and how they were implemented. Other than that, you might just have something right there, but again, an original idea isn’t necessarily a good one (refer to image below).
Will It Blend?
Well, not literally (or maybe literally, it depends on the concept). It’s just an analysis on how your business idea, when implemented, will affect the specific industry and/or market it is targeted at. Do you think it will make waves, or will it just blend into the background and remain mostly unnoticed?
Making a difference really counts; a great business idea will be one that will have the potential of reshaping the entire market around it. A mundane concept that doesn’t sport any innovations will just ape the industry leaders and won’t rake in any profit.
Will it Result in $$$?
It will take some solid number crunching to prove that your business will earn and not bleed you money, but right off the bat, you should be able to make a value judgment on the product of your own noggin. Not all bright ideas are financially profitable, and some might be great ideas to go along with anyway, despite not being that lucrative.
If you think your idea can make you a fortune, proceed to the marketing studies and projections. Remember to do everything in the ethical and legal way, and do not hesitate to consult those in the know about setting up your business. Onward, entrepreneurs!
Stacey Thompson is a professional writer, marketer, entrepreneur, and a lover of weird little animals. She is based in San Diego, California, and is working on her friends’ group blog about life, love, coffee, and kitties, Word Baristas.