Starting a new business is always exciting and it can be easy to be swept up by your own enthusiasm for a new idea, even if the idea itself isn’t as great as you think it is. Love is blind, and when you fall in love with an idea, you might not realize its flaws until you’re already too deep down the rabbit whole to turn back. That’s one of the reasons 80% of new businesses fail. Here are the factors you need to consider to determine if your business idea is a good one and will succeed or if you need to table it.
- Is it something people will buy? Think about this very objectively—is this something that people will actually want to pay for? Paying customers are what turn you into a real business, not just a great idea.
- Is your idea a solution to a problem people actually have? Don’t make the mistake of thinking that people will buy something or use your service just because it’s there. They want products and services that improve their lives or help them conform to a desired lifestyle. Does your product or service solve that problem for them?
- Is it reasonably priced? It makes sense to consumers that cars are as expensive as they are. They are large, complicated pieces of machinery that do a very valuable task. Will your product’s price point make sense to those who will want to buy it or use it?
- Will it scale? It’s easy to think about making two or three hand-bound notebooks a day to sell to the two or three people a day who might buy them when you first start your business. But what about when the general public finds out how great you are and thousands want to buy your amazing hand-bound notebooks (or whatever your idea is)? Do you have the ability to scale up your production?
- Is it different enough? It doesn’t have to be completely unique. It does have to have a unique selling point though. You can feel free to browse other websites for ideas. Just remember to put your own unique spin on the product and offer something new to your customers.
- Can it be duplicated by someone else? If you do have an idea that is fairly unique, you want to make sure that you have copyrights and patents in place to prevent others from stealing your idea. You can do this by putting patents and copyrights in place. Make sure to go through all of the correct legal methods in order to secure your product. While you can do this all on your own, you may want to consult a lawyer.