So, your entrepreneurial spirit has kicked into overdrive. You had a dream attack, and now you think you’ve got the business idea that’s going to bring you fortune and fame. Well, hold your horses! Novel ideas are always exciting, but excitement doesn’t always translate into success. There are essential components that every good business idea needs. Does your idea have them? Let’s take a look:
5. Addresses a Real Need
At the core of every business is a problem. This isn’t a problem with the business itself, but rather a problem that the business has been designed to address. What’s the problem that your business idea attacks? Really think about it, and then ask yourself if it’s a real problem. You’ve seen those infomercials where people act like something is a problem when it really isn’t. Are you that person?
4. It’s Unique
Any business that’s worth starting is one that’s never existed before. This doesn’t mean that you have to come up with a product or service that’s literally never been thought of before – all that’s certainly ideal. However, you better be offering something in a way that it’s never been offered before, or have a product that does something better than any other similar product out there.
3. A Price Point that Makes Sense
Here, you’ve really got to think about how much it’s going to cost to bring your product or service to market. Once you know that, think about the people who will have a use for it. Do those people have the money necessary to afford the price point that you’re going to have to charge? If they can’t, then it’s time for your business idea to head back to the drawing board.
2. It’s Scalable
You may have a business idea that addresses a need and is something that people wlll pay for. But, think about that product or service and consider it five years from now. Are there opportunities for expanding the product or service? Is it possible you’ll be able to make your business more efficient by incorporating automation? If the answer is no to these things, then you’ve got a profitable hobby and not a profitable business.
1. You’re Excited
If your business idea is to become a business reality, it’s only going to happen through your hard work and dedication. Therefore, if you’re not 100% excited about the idea, then it’s probably not worth pursuing. “Pretty excited” isn’t going to get cut it when you’re looking down the barrel of your third all-nighter in a week. Keep that in mind before pulling the trigger on your business idea.
Now, It’s Up To You
Did you take your business idea and run it through the gauntlet up above? Do you think you’ve met all the qualifications? Well, now it’s time to turn that business idea into a business reality. So, get to work on that business plan, and let your entrepreneurial spirit carry you forward!
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