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4 Simple Tests To Determine If Your Business Idea Will Work.

You have a great business idea and everyone seems to agree but many entrepreneurs can attest to the fact that just because your closest friends and family have said, “Wow, this idea is so needed!” or, “Good job, this sounds great!” doesn’t mean it necessarily stands a chance in the market. For one, it is unlikely they’d actually be your paying customers.

So how do you know your idea will work? How can you attest to its commercial viability? An investor may leave clues, a bank manager might make suggestions and your estimations might be promising but in reality, these are all a gamble. Starting a business is a gamble, anyway…

Only you can truly say whether an idea will work or not – after all you came up with the idea. Try these 4 tests to help you decide:

1. Motivation: Can you be bothered? Will you stay motivated?

  • YES – how so?

  • NO – how will you try?

2. Management: Is you business idea based on what you already know and are familiar with?

  • YES – Do you have the substantial skills and contacts in this area? List them, plus any gaps you identify – how will you fill the gaps?

  • NO – Do you believe you can still succeed despite this being a new area for you? Do you know where you might be able to get the knowledge, skills and expertise required?

3. Market (1): Is the market you’re hoping to enter growing or in decline?

  • GROWING – Would you be able to gain a share of it? How will you do this?

  • IN DECLINE – How will you overcome this? Is this still a viable opportunity? How?

Market (2): Are there others already doing or planning to do what you’re proposing?

  • YES – Would you be able to easily differentiate and offer your customers something different?

  • NO – How can you ensure you’re the first to enter the market? Have you considered patenting your idea (if relevant)?

4. Money: Can you find enough to get started and keep the business afloat? Can you find or make enough to feed, live and handle financial commitments? Of course, you may be thinking not yet but also consider the eventuality.

  • YES

  • NO – Can you get enough? How so?

Answering these questions will help you identify where you need to get clear on: what you’re offering (define); where you need to gain a competitive edge (differentiate) and; what’s missing in order to maximise the chances of your idea being successful.

This post was written by Stephanie Anyamele, Founder of What Next, Coach? and Lead Consultant at Charles Ardor & Company. You can connect with Stephanie on LinkedIn.

Abuja, Nigeria

©2020 by What Next, Coach?