Wishful Thinking Or Viable Business Idea- Characteristics Of A Good Business Idea

Wishful Thinking Or Viable Business Idea- Characteristics Of A Good Business Idea

The greatest products we have today, and of course the great companies we have today were birthed from an idea. We all know the story of Facebook, and how it was just an idea that was created for a small set of people and how it has now grown to become the 4th most valuable brand in the world (as at the time of this writing-according to Forbes). A business idea therefore is a concept that is usually centered on a product or service that can be used for financial gain. A sound business idea is something that is not complicated but simple enough to be implementable with the available people and resources. The first thing on our mind though should be, how can I get a good business idea? Whilst there are many ways this could come, let’s highlight three sources that are very prominent.

Hobbies/Interests-

Many people, in pursuit of their hobbies or interests, have founded businesses. If you enjoy traveling, performing and/or hospitality, you may consider going into tourism.

Personal Skill or Experience

A large amount of the ideas for successful businesses come from experiences in the workplace. For example, someone with experience in the banking sector might who eventually sets up his/her own firm offering automated banking services. Thus, your work background plays a crucial role in your decision to go into business as well as the type of venture to be created. Your skills and experience are probably your most important resource, not only in generating ideas but also in capitalizing on them. 

Surveys-

The needs and wants of the customer, which provide the rational for a product or service, can be ascertained through a survey. Such a survey might be conducted informally or formally by talking to people. Now that we have sorted how to get an idea, the next thing to consider is how to ascertain if that idea is viable. A good business idea should: –

Be simple

If your idea causes confusion when you start to explain it to other people, you may need to delete some of the aspects that aren’t essential.

Solve real problems

Would you pay for something that you can easily do without? Or something that brings you no joy or satisfaction? Or something that isn’t suited into your everyday life or a service you need for your efficiency? Your guess is as good as ours-NO! Only products/services of real benefit will attract monetary value. For example, the problem of finding affordable books in Nigeria has been solved by online thrift bookstores that sell used books at cheaper prices.

Obvious, yet original

Your business idea should be unique and original, or at least an interesting adaptation of a start-up that already exists.

Sellable- 

When you talk about your potential start-up idea, it shouldn’t be hard to sell. People should already be interested in how your business can solve their problems. Even the most complex ideas should be an easy sell, especially if it’s a great one.

Sustainable-

Your business idea must be built on solid foundations so that it has longevity. It must be an idea that isn’t a reaction to present happenings but one that can evolve over time. 

Has an existing market, or has the capability to create a new market-

Ensure that your idea is one that is fitted to an already created and running market. You must be sure too, that the market is one that is growing. Instead of entering an existing market, another option is to create a different market, which you will fill. An example of this is Farmcrowdy, an online agricultural platform that connects real farmers with farm sponsors. This business idea has created a somewhat new market for those who wish to be involved in farming but cannot be physically involved.

Differentiated

Your business idea needs to be different from existing products or services. Now, this doesn’t mean completely different, but your business idea needs to offer something that is unique and not being replicated by others yet.

Scalable-

Scalability is the characteristic of a business idea that allows it to grow at the exponential level needed to evolve into a large business. This is a key aspect that will take your business idea from average to great. 

Business ideas can sound great in your head, but it is important you spend time to improve them. If you are still stuck on how to progress with your ideas, hopefully these tips will help you critically think about what business ideas need to be successful.

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