Sure, many people think that starting a business is a simple affair: you have an idea, you get some money from your family or friends, and your problem is solved. This couldn’t be farther from the truth. You see, the world is full of people with ideas for products and businesses that could make everyone’s life better. However, for various reasons, most people don’t dare to pursue their dream of starting their own business or don’t understand what goes into creating an idea with legs.
What Makes A Good Business Idea?
Good business ideas are those that have the potential to grow exponentially. They have excellent market potential and can create a lot of value for the market. In order to come up with a good idea, you need to think about what problems it can solve, who it is for, and how it will disrupt the current industry standards. They should also consider whether the solution is lucrative enough or not.
It Must Be Scalable
One of the biggest challenges that businesses face is how to produce a winning business idea into a scalable product. The idea should not be only for one buyer or for one market. Otherwise, it will fail to achieve the desired success and cause a loss of money and time. In order to make an idea scalable, it must have the potential for a wide variety of buyers, markets, and so on. It also needs a way to expand into new areas. Ideas that don’t scale are usually too niche in nature or require a lot of time to develop before being sold. They might also have low demand and low profit.
You need to understand that understanding whether an idea is scalable will not be proven unless you put it to the test. Yes, for many products and services, the market already exists. But for others, you need to spread awareness and generate curiosity. Experts from digital marketing agency Igloo cite the example of a business model like Uber or Air BnB. No one expected it to take off simply because people found it to different and unnerving. However, experience has shown that if there is value and the marketing is done right, any business idea can be scalable.
It Solves A Problem
A business is not successful by having a good idea but by solving a problem. However, before you can come up with a good idea, you must identify the problem to be solved. This is the first step to ensuring that you’re going to reach your goal of profitability. Otherwise, you might end up with a failed startup or business. When you look at your idea, you should consider what problem it will solve and how it will make your customers’ lives better.
There are new problems to solve every year, as you can see from the different SaaS products that hit the market every year. You can often see how popular these products are by checking online reviews such as what SupplyGem does with business platforms and other sites might do for physical products. If something needs to be fixed, solved, or improved, then it makes sense for the business idea to offer a solution.
It Either Has A Market Or Can Disrupt One
Some of the most successful companies in history started with an idea that was so novel or unique that it was hard for others to imagine it as something they wanted to invest in, let alone buy from them. For this kind of idea to become successful, it needs an existing market: A market where people have recognized not just a need but demand for what you’re selling.
However, there are times when you don’t need to slip into an existing market but disrupt it. Business disruption is the process of changing an industry or market by introducing new technology, business model, or strategy that causes a shift in market share and customer spending power. Disruption happens when a company introduces a product so innovative that their competition does not have the means to create an equivalent product.
It Is Sustainable
Having an idea does not have to be complicated; it just needs to be sustainable. In business, sustainability means that the company’s long-term health is in your control rather than out of your control. You must be able to manage its growth by ensuring there is enough demand for the thing you’re selling.
It Must Be Profitable
Profitability has become increasingly important in recent years, as more investors are turning away from the old way of pumping cash into a business before it has even turned a profit. You must consider how your idea will generate a profit and over what time period.
It Must Have A USP
A unique selling proposition (USP) is a reason why people would buy your product or service. It’s the benefit that makes your customers want to choose you over others. The USP can be something directly related to the product, like its features or benefits, or it can be something like your customer service.
A great idea can scale as you grow it, is sustainable, and generates a profit over time. By focusing on these critical elements, you should set yourself up for success.