Congratulations on coming up with a great business idea. You are on your way to joining business tycoons such as Richard Branson the man behind Virgin Group and Mark Zuckerberg the Facebook founder. The two men started with an idea and were once in your current position. However, before setting off on your entrepreneurial journey, it is essential to consider its viability.
While almost all ideas are valid, not all of them are viable. Assessing the viability of your idea gives you an opportunity to test its potential and determine whether it is a worthy investment or not. If you have a business idea, here are the steps to test its viability:
Develop a list of questions about your business purpose
The reason for a business existence is founded on the solution it is offering to the customers. In this essence, the first step to testing the viability of your idea is coming up with a list of questions about your potential business. You need to ask the right question and find answers for them. The questions enable you to have an insightful thought about your venture. Also, they are a good way of developing a foundation for your business plan. Furthermore, the answers to the questions enhance your business concept for successful implementation.
Determining your competitors
Businesses do not exist in a vacuum. Also, unless your concept is new, there are businesses already offering the service or product you are introducing in the market. While you are not planning to copy your competitors’ strategy, it is essential to understand them. By this, you will know the approach you will use to counter them and develop a competitive advantage.
For instance, if the competitors are using the mainstream media as their major marketing strategy, you can turn to online marketing as your way of reaching your customers. Also, having adequate information about your competitors will help you to enhance your business uniqueness and attract more customers.
Conducting your market assessment
The best place to test your business idea is the target market. Remember, your customers are the determiner of your business success or failure. If what you offer has a link to customer needs, you are certain that your business will earn profits and the opposite is true. Hence, you need to define your customers, determine their needs and wants and check whether your potential business will cater to them. Thus, you need to assess your market to determine whether your idea is viable or not.
Before ideas are implemented, they should be screened and tested against internal and external business criteria, through comprehensive feasibility and viability studies. https://t.co/dBJG0FU31n pic.twitter.com/afF49hlih4
— Business Essentials (@BizEssentialsZA) 16 de febrero de 2018