How to Determine If You Have a Good Idea for a Business

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The biggest problem with entrepreneurs is their complete fixation on their product or service. They are passionate about the idea they have come up with. But how do you know if it is a good idea? Here's how to determine if you have a good idea for a business:


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The best way to determine whether an idea is worthwhile is to ask 3 key questions:

1. What is the problem you are trying to solve?

Understanding the problem you are trying to solve is key. It's not enough to have a wonderful product, it must be solving an actual problem that lots of potential customers have. The best business ideas solve problems.

Talk to your potential customers and ask them to articulate the problem. 

Being very clear on your target customer and the problem they have that you can help solve is essential for business success.

Recommended reading: You Should Do This Before You Write Your Business Plan

2. What is the solution you are offering?

What is your idea offering as a solution the problem you have identified? 

Show prospective customers your solution. Listen to their feedback. If you're not open to changing or adapting your idea to fit what your customers will want then you may not be successful. 

Recommended reading: How To Get Customer Feedback That You Can Take Action On

3. What is the magic?

What is the size of the problem (the market)?

What is the uniqueness of the solution?

What are people willing to pay?

How are we going to make money (preferably lots of it)?

Is your story compelling? 

These 3 key questions should be able to be described on one page and in about 30 seconds (elevator pitch!). If it is a compelling story, you have a good idea. If not, rewrite the story or do not go ahead with this venture.

Over to you now. Any other tips for budding entrepreneurs for how to determine if they have a good idea for a business? Tell us in the comments below

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Thursday, 21 February 2019
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