Are you one of those who think they have got a great idea but are not sure if the idea will make a viable business opportunity? Are you curious to know if your “grand” idea could birth a successful startup? The ability to figure out business potential requires severe thought and reflection. We have provided below 5 basic and crucial questions to ask yourself and also help determine if that out-of-the-box idea can translate to a healthy bank account in future.
Is there a gap to be filled?
Case study-Nigerian roads; If you are a frequent land traveler, you may have across a particular stretch of road where the ride becomes bumpy and the driver is trying to dodge a few too many portholes on the road. Normally this journey should take about three hours but due to the slow navigation in dangerous terrains, the journey lasts extra one-two hours. You say to yourself there is need for the government to work on these roads.
In other words, your idea should make life easy for a significant number of people. Your idea must be able to put a smile on the face of someone who is facing a problem. It must offer some kind of balm for the “pains” of life. I could go on and on but you probably should check out this article “why your startup should solve a problem”.
Do you have prior knowledge of the competition?
Knowledge of your current and prospective competitors will give you a certain edge and comparative advantage over them. For example, you want to provide a solution for weight loss. You need to know what is already out there in the market, their strengths and weakness. Hence you need to figure out how to come up with a product that offers equal if not more in terms of strength while compensating for the current weaknesses of the products already in the market.
Would you call yourself an authority ?
Try to focus your business idea on a niche that you are well versed in. This would save you time, money and resources. So you’re a very good lawyer but for some reason you find that web development pays more but the most you have done on a laptop is check your mail, you will be setting yourself up for a long fall if you do not at the very least, have basic knowledge of web development.
Have you run your idea by a couple of persons?
Don’t be afraid to get out there to conduct a survey; the feedback you get from either prospective customers, colleagues, friends, incubators, accelerators and mentors would have cut your failure rate by at least 20%. Take advantage of unprejudiced feedback and direction from strangers, you will be glad you did.
Do you have a sound business model?
Your business model will determine your success or failure as an entrepreneur. If your model is suitable for your geographical market, your success rate will be high and vice versa. Whatever model you have in mind, your ability to fulfill the specific requirements of a business will determine how successful it will be.
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