Next Level Success Reviews 4 Ways to Make Sure Your Business Idea Is Solid
While brick-and-mortar stores were once the only option, the internet has allowed businesses to reach potential customers all over the world. The rise of ecommerce has allowed unprecedented customer reach — as well as an unprecedented number of new entrepreneurs.
More players in the game, though, leads to a crowded market. With everyone trying to get a slice of the internet business pie, it’s harder to find good, original business ideas.
If you are an avid fan of Shark Tank, you’ve probably seen the Sharks pass on a business deal because the space is already too crowded with similar products or services. If a business is unable to differentiate itself from others in the market, it’s much harder to make a profit.
Does this mean that you need a 100% original never-heard-of-before idea in order to start a new business? No! However, you do need to offer something compelling and different than your competitors. Give your future customers a reason to pick your business above the others.
How do you know if a business idea is solid? Next Level Success reviews four ways you can tell.
Does Your Product Fill a Need?
As simple as this sounds, you should ask yourself if your product or service fills a need. If your idea is completely frivolous, you probably won’t stay in business for very long. This doesn’t mean that your product has to be necessary for survival, but it should fill a gap in people’s lives.
Does it make a task easier, faster, or more enjoyable? Does it save time or money? Is it uniquely entertaining? These are the questions you should ask yourself.
Is There Demand in the Market?
It doesn’t matter how good an idea sounds on paper; you have to sell to be successful. You need to have something that people will actually buy. Do your research. Check out similar products and services. Find out if other people are successfully selling similar items. Talk to your friends and family. Do what you can to determine if your business could successfully attract and retain customers.
Can You Hit the Right Price Point?
This is a tricky part of running a business: finding a price point where people are willing to buy your product/service and you can still make a profit. This requires a lot of research and number crunching.
First, do some research to figure out the pricing of your competition. Doing so will allow you to get an idea of the price range your customers are willing to spend for your product. This number may be a little different if you are specifically targeting more high-spend customers, but it’s essential to get a baseline.
Next, figure out how much it would take to get your product into the hands of your customers. Some factors you may want to consider include (but are not limited to):
● Research and development
● Overhead — utilities, rent, equipment, insurance, etc.
● Salary for both you and your employees
● Product materials
● Marketing and advertising
● Shipping materials and the product
These expenses start to add up. If you can’t find a price point that customers are willing to pay that still ends up making you money, then it’s not a good business idea.
Is it a Scalable Business?
If you can’t scale your business, your future success is capped before you even get started. In order for a business to be scalable, you need to be able to replicate your product or service efficiently as you grow. If the quality suffers, or if it becomes too expensive to operate at a profit as you get larger, you won’t be able to scale.
Before jumping into a new business with both feet, ask yourself these four questions to determine whether the idea is worth pursuing. If the answer to all four questions is yes, then you’re ready to start your own business!
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