Is a Business Idea a Good Idea?
In order to build a successful business, it is important that the business idea can create a viable service or product. By figuring out whether one’s business idea is a good idea at the beginning can help create the foundation for this business and then measure its progress.
Developing a Business Idea
A new and innovative idea is usually the foundation for starting up a business. This idea can often fill in a gap in the free market. Here are some questions that may help identity a good business idea
• Are there any skills that could be the foundation for a new business?
• Is there a gap in the industry that an individual currently works in?
• Was there a time where there was a product or service needed but no one could serve or provide it?
• Are there any hobbies that could be made into a business?
After finding a good business idea, it must be refined through research. The market should be looked at to see whether the idea would fill any gap. It is also important to look at whether any social trends or innovative technology work in favor of the idea.
If there is a potential market for the new business idea, the idea must then be properly developed in order to satisfy the needs of the market. If an idea cannot realistically be developed, it should be dropped before too much money or time is put into it.
Some important steps in development include:
• Designing the idea into a service or product that can be sold
• Creating a prototype that can be tested
• Patenting the product
• Financing the product and business
• Physically setting up the business
• Marketing the service or product
Throughout this process, if all points are not done successfully, it is important to reevaluate the business idea to see whether continuing is worthwhile. Some situations that may require reevaluation include:
• Competition with others who are releasing a similar or identical product, particularly if they are a well-established business
• Developing a service or product that is not viable technically, for example it cannot meet performance needs or cannot be efficiently manufactured
• Developing a service or product that is not viable commercially, meaning it will not be able to product a sufficient financial return
If all of these points are met, the development of the business idea should be financed, secured through patents, and tested on the market and eventually put out as not just a business idea, but a viable service or product.