Determining Whether Your New Business Idea Can Bloom
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Determining Whether Your New Business Idea Can Bloom
During the early days of any new business, there is always some level of uncertainty about whether your new business idea is one that can succeed and thrive. This is particularly true if you’re newly unemployed and your idea is your chance to start over. After all, roughly 95% of all startups fail in Australia, and so you need to make sure you dot your i’s and cross your t’s. Here are a few ways that you can help determine whether or not your business has the potential to succeed.
Make Sure You’re Solving A Problem
The new business ideas with the best chance of succeeding will solve a problem. Think of all the startups based around smartphone apps that solve a problem or streamline an activity in some way to make it easier or more convenient for users. There needs to be a clear problem and your business needs to offer a clear and simple solution; otherwise, it may be tough to gain traction, regardless of the market.
Create A Preview of Your New Business Idea
Try building what is called a minimum viable product, which is essentially a prototype of a prototype. Before you invest in building an actual prototype, you’ll want some version of the product that you can test out to see if it’s an item that will work as you expect and can be sold on the market. Many startup business owners are eager to get things going in order to bring some profits in. Naturally, you need income in order to survive; you may have been out of work for a while or spent a long time in the preparation stages of your startup project. However, regardless of how desperate you are to put your product on the market and get your business off the ground, you have to make sure you have a product that’s worth the investment.
Speak with Potential Customers
Performing market research is an important step in determining whether your business idea has a chance to be viable. Most of your research should revolve around focus groups, surveys, and other ways of speaking with potential customers. Find people who fit your target audience and ask them if it’s something that would solve a problem for them and if they would pay for it. This kind of feedback can be invaluable so you can make changes to your product before you start churning them out to be sold on the market.
Is Your Idea Adaptable?
You can’t be married to one vision of your idea. Businesses in every industry have to change and adapt over time, and your business has to be able to do so as well. There will always be changes in technology, supply and demand, and consumer behaviour. If your idea is something that can adapt over time to these types of changes, you’ll be in good shape.
Are You Passionate Enough About Your New Business Idea?
Having an idea is one thing, but to make it successful you have to eat, breathe, and sleep your business. Even if you have a good business idea, you need the passion to nurture it and the drive to make it work no matter what. Are you obsessed with your idea and willing to do whatever it takes to make it work? If so, there’s a good chance you’re on the right path.
