Have you ever looked at a simple invention such as the corkscrew or the trunki and thought “I could have invented that”? The simple fact is that most people have potential business ideas every day.
But how do you know when the business idea is good enough to pursue?
Fortunately the answer to this question is relatively simple. Consider the following points; they will guide you as to whether you should be taking your idea further or not.
Don’t forget if you’re serious about starting a business it’s a good idea to start putting funds aside and sign up to any entrepreneur based sites that you can. You never know what advice and inspiration you may get.
Assess The Competition
The world of business has shrunk. You can make a new item today, sell it across the globe tomorrow and see copies of it within a week or two.
There’s no getting away from the fact that competition in any business sector is massive. The harder you make it for competitors to copy you the better the chances of your idea becoming a successful business.
Consider if there s something unique about your idea that could be patented. This will allow you to corner the market and get the head start you need.
Regulations
If your idea will put your business into a heavily regulated sector then you need to think carefully. The more regulations the better from a consumer point of view. But, this will make it exceptionally difficult for you to break into the market. Your business could be sunk before your idea is ever seen.
Uniqueness
Having a unique product means that you are the only business to be selling something. While a lack of competition can be seen as good a completely new product can be difficult to sell. You’ll need to convince customers that they need and want your product; that’s not easy if no one has ever heard of it before.
Equally too much competition will make it hard for you to make a dent in the market.
Ideally you need a market that is tapped but not saturated. If this is the case then take a look at how other companies have got started; even if they have failed. All the information can help you to move in the right direction.
Costs
Unless you have unlimited funds behind you it will be important to assess the upfront costs of getting your idea to market. There may be production costs, premises cost, insurance, marketing and staff.
The higher the upfront costs the more difficult it will be to make a success of your business. However, if your upfront costs are likely to be high you could take this as an opportunity to get investment backing; this could actually boost the appeal of your product before you even launch it.
Expertise
You need to consider your feed of expertise and how this can be used to boost your business idea. The more specialized your expertise the harder it will be for other businesses to copy your idea.
In short make sure your idea and new business encompass your existing strengths. Add a little passion and you might just be the next big thing!
