5 Signs That Your Business Idea Might Not Be Very Good

By TRISOFT team

In the world of entrepreneurs, getting a ton of ideas for the next venture isn’t a problem. The real challenge comes from figuring out which of them are worth pursuing and investing in. No matter who you are, what business you would like to create or how big you would like to develop it, you need to analyze the options well and decide which one presents the fewest risks, so that it won’t turn into a failure and take your savings and ambitions down with it.

Relying on your gut instincts isn’t always a bad idea, but to be on the safe side, you might want to take a few extra measures to ensure that the leap of faith you are taking won’t lead to a disaster.

First of all, research the demand and market that exists for your product or service. You should have a few aspects very clear in your mind:

1. Why are you doing this?

Is it your lifelong passion, are you very good at it, have you identified a need in the community and society, which needs to be answered?

The best option for a startup is to get involved in a domain that you have in-depth knowledge of, extensive experience in or simply have a great product that no one has thought of yet. Whether it’s answering a need that people have or presenting a product or service that they didn’t even know they wanted until you showed it to them, make sure you have expertise in the matter and can truly satisfy their demands.

2. What problem are you solving?

Even if your idea is cool, efficient and fascinating in your eyes, if there is no demand for what you are offering, it won’t get you very far.

If only you and a handful of people are experiencing the problem that you’re trying to solve, chances are that profits won’t be good and your business won’t last long on the market. Get a feeling of society’s needs and desires, identify the things people really want and try to figure out a novel way of fulfilling their wishes. Even if it’s a method that the market wouldn’t have imagined before you showed it, the starting point must be a real and stringent issue that determines the birth and success of your business.

3. Who are you solving the problem for?

Who are the clients that will buy your product or service, what age, race, gender or pay group are they part of, how badly do they need this problem solved?

Any good business is based on the principle that more money should be coming in than going out. That may not be the case at first, while you are still learning the ropes and trying to make a name for yourself and expand your business, but if the dark period lasts for more than a few months, you should really reconsider the price of your products or services, as well as the targeted audience. Either find a less expensive manner of creating your product or find a niche market that can afford your high-end merchandise. Fluctuations in revenue and expenses are to be expected in the long run, but if the math simply isn’t making any sense, maybe it’s time to cut your losses and start fresh with a new idea.

4. How were your potential clients solving their problem before today?

Were there other businesses that dealt with the same issue, offered the same products or services, and what happened to them?

If others have failed where you are trying to make an impact, investigate the causes and learn from their mistakes. Maybe it was the fault of bad location or unrealistic market expectations, lack of vision or simply badly designed products. Their failures don’t necessarily imply that you will have the same fate, but take it as a warning sign and a lesson to be learned. Determine what exactly is going to help you succeed where others have floundered and what makes you different from the rest of your competitors, past or present.

5. Who else believes in your idea?

Is anyone willing to put their money where their mouth is and back up your plan?

Businesses rely on funds to operate, which is why it would be useful to explain your business idea to potential investors before launching your startup. That way, you can determine how good it is and if it will bring you money and fame in the future. If it doesn’t convince investors to provide the necessary finances, it probably doesn’t have a fighting chance on the market. The problem might be the idea in itself or the way in which you present it to others — but, in any case, it’s back to the drawing board, in an attempt to improve and build on the solutions you first provided.

Be wise

Whether consumers ever imagined that they would want your product or not, your business should solve an existing problem, answer a real need or fulfill a great desire. At TRISOFT, we believe it isn’t wise to build your company around a fad that might die down in a few months. We advise you to learn from the mistakes of others, believe in yourself and try to attract the confidence of others as well (investors and clients alike), then attempt to come up with a step-by-step plan to take things to the next level and expand your company to the level of a force to be reckoned with.