If you have dreams of starting your own business, you need to be sure that your idea is going to be as successful as possible. This means that you need to really think about how strong your business idea really is. The unfortunate reality is that just within the first year, nearly 20% of businesses fail. Only about 30% of businesses will make it to their 10th year. In order to beat these odds, you need to start off on the right foot. These are 5 essential questions that you need to ask yourself to determine how strong your business idea really is.
1. How Financially Feasible is Your Idea?
Sure, you might have a great idea but can you raise the funds that you need to launch your business? Even if your idea is a fantastic one that can really take off, if it costs too much for you and you can’t get a loan or investors to help, then this idea is not a financially feasible choice. If you can’t get the funds to launch, you won’t be able to start your dreams of owning your own business.
2. Is There a Need for Your Business?
You may have a great idea, but is there a need for it? If not, you may struggle with finding the market for people who are interested in what you have to offer. One of the biggest problems here is if you are one of the first of that type of business in the area. It can be a great benefit to you if you are the first business of that type, such as being able to set prices and standards. But, it may also be difficult to estimate any potential earnings in your research since there are no other businesses like yours, making it hard to get funding.
3. What Makes You Different?
For the most part, you won’t be the only business in that niche in the area. This means that you need to find a way to stand out from the others. You can easily get lost in the sea of your competition if you can’t distinguish yourself from the other business. This can be especially problematic since these other businesses have already established their client base.
4. How Long Does it Take to Describe Your Idea?
Some people will tell you that you should be able to describe your idea in fewer than 25 words. The reason for this is because the best business ideas are often the simplistic ones. This isn’t about making a short business plan, more like creating an elevator pitch about your idea for investors. They will like having a quick summary of your business to decide whether or not they are interested in your idea.
5. What Weaknesses are in Your Idea?
You may think that you need to focus on the positives but planning for the worst can be a good idea. You need to know what limitations you are going to face or any drawbacks to your business idea, so you know how to address and overcome them.
