Thousands of people have thousands of ideas for a business each and every year. What makes the difference between those that work and those that fall flat? How do you know yours is one that will soar and not one that will crash and burn? While there are many factors that play into the success or failure of a business, having a bad idea doesn’t have to be one of them. Avoid crashing and burning due to a bad idea by following these general guidelines.
Is it New, Unique, Innovative?
Not that old standbys can’t be good ideas. If there is no pizza joint in town then the business could work even though it is neither a new, unique, or innovative idea. However, for the most part, for an idea to be a great one there should be some twist that makes the product or service unique. The abundance of painting studios that offer paint and wine classes, painting girl’s nights out, and other such entertainment have been so successful because they offer customers something to do that has not been an option before. A product that solves a problem like the plastic lids that go on half empty soda cans keeps them from going flat could really take off. For an idea to be a good one, it should have something that sets it apart from anything else out there. If your idea doesn’t meet this test, don’t give up. Just see if it can be tweaked a bit to make it more unique.
Is the Demand There?
A shoe tying robot is unique, but there is no demand because most can tie their shoes on their own quickly and easily. The answer to this question requires more than just speaking with a few people and hearing their excitement over what your new business will have to offer. It requires in-depth market research, and you may need to enlist the services of a professional to get the real take on what is going on in the market. You need to know that not only is there demand there currently, but that it is going to continue being there in the future. Make certain, to every extent possible, that this isn’t something that will be a passing fad, but rather that it has staying power. One great question to ask is whether or not the problem that your product or services solves is one that is going to self-resolve eventually anyway? If so, the idea may be dead before you are ever able to give it life.
Can You Get Financing?
While not always a perfect gauge, whether or not a bank will speak seriously to you about a loan is a fair indicator of the kind of idea you have. While there are many factors that play into one’s ability to get a business loan of any kind, whether business credit cards or business startup loans, lenders turn down applications all the time and the fact must be faced that having a bad idea in the first place is one of the reasons why.
In the end, there is no sure fire way to know without a doubt if an idea is a good one or a bad one. There are exceptions to every rule. However, these tips offer a starting place at the very least that will be helpful in determining whether your idea worth pursuing.
This article was submitted by Faith Stewart. Faith Stewart has a BBA with a major in accounting and spent 10 years working in the various aspects of accounting and finance before pursuing her passion for writing.