Many students decide to start a business with their classmates, but unfortunately, most startups fail. Why? Disputes on this topic are as old as time. Some blame the team while others think that the idea was too weak from the start. In fact, the number one reason a business fails (according to research from CB Insights) is that the product or service isn’t needed on the market.
The modern economy can be called human-centric or customer-oriented. What do consumers need, what problems do they have and how can they be solved? Answers to these questions should be discovered at the stage of discussion. Therefore, we have developed a checklist on how to identify a successful idea right from the start.
What Problem Are You Going To Solve?
First of all, you need to have a clear understanding of what problem your audience is facing. Your product, idea, or service must solve it.
Of course, you’d better conduct a deep analysis of the audience; and for this, you will need a lot of time. Luckily, you can always free up your schedule with the help of a talented essay helper from a paper writing service who can complete any school assignment for you. With an experienced assistant on your side, you can focus on your top priorities while still improving your academic performance.
A common mistake many startups make is that they look for a problem after they’ve already created a product. Therefore, it is useful to trace the entire cycle of interaction between the brand and the client from the very beginning.
- Determine the key actions the consumer needs to take to achieve the desired result;
- Explore the experience the consumer has at every step. Identify pain points or obstacles to achieving results;
- Work out your solution based on the problems you found.
You can model a situation in which your product or service will fill this gap. You will also understand whether it is critical enough to spend time or effort on it.
Is Your Solution Useful And Unique?
Put yourself in the buyer’s shoes. How different is your product or service from what is already on the market? Does it create additional value? Does it improve the process in a way that competitors can’t?
You don’t have to invent something absolutely new or be the first to market. For example, Facebook wasn’t the first social network ever. SixDegrees and SocialNet already existed on the market 7 years before Facebook appeared. However, it was the first social network built around real personalities. It has become a platform to share news, express your position and stay in touch with people you care for.
Is Your Idea, Service Or Product In Demand?
How likely will your future consumers be to use the product? To get the answer, reach out to your target audience: why not find some focus groups or conduct a survey? Sam Walton (a business magnate known for founding the retailers Walmart and Sam’s Club) said: “There is only one boss. You buyer”. Therefore, your task is to attract them and meet their needs in the best possible way.
How Realistic Is Your Idea?
Will it be difficult to bring your idea to life? Will you need to invest a lot of time, energy and money into it? Does it meet your expectations and the amount of resources you are willing to spend?
Is It Profitable?
Will you be able to recoup your investment or at least break even over a year? What is its ROI (Return on Investment)? Make a list of all the possible costs and benefits and make sure that the benefits outweigh.
Will This Require Your Skills?
Can you use your skills and experience to bring an idea to life? Of course, you need a team to be successful. However, if you are experienced enough and can see the gaps right from the start, it will be easier for you to make the business work.
Can You Rely On Your Contacts?
Having the right people with the right skills in the team is critical for launching any business idea. Do you know someone you can turn to for help? Someone who can assist you with thinking through strategy, implementing it and configuring business processes? Perhaps you have friends who are engaged in email marketing, SMM and SEO for further promotion? Business is first and foremost about people: those for whom it was created and by whom.
Is It Possible To Test The Idea On The First Users?
Early adopters can test your offering before it hits the market. If the target audience of a product or service is clearly defined, it will be easier for you to decide who the first users will be and reach out to them. Of course, these could be your university friends. Therefore, quickly submit your homework to the best paper writing service to free yourself from unnecessary stress, gather a focus group and move from theory to practice.
How Big Is The Market?
Perhaps you want to create quite a niche product or service. However, to do this, you need to make sure that your offer is highly relevant and will contribute to customer engagement and brand popularity.
However, to test the idea and reduce risks, it may be better to start with a broader market. This solution has several advantages:
- You will be able to try different approaches, determine what works best for your audience and meet their needs;
- You will have more potential for further growth;
- A large number of suggestions means that the business will be less reliant on one product or service, and a wider audience means that revenue won’t be limited to a small group of people.
How Inspired And Determined Are You?
Would you become a buyer of your product yourself? Perhaps it solves a problem you are facing too. Do you feel connected to the idea and its purpose, and does it align with your values and beliefs?
If you aren’t willing to study this topic further, you won’t be able to develop the product for a long time and you certainly risk losing interest in it.
To Wrap It Up
In order to turn a good business idea into a profitable business, it is key to:
- Make its detailed analysis;
- Assess your leadership and management skills;
- Calculate the initial investment and have a great financial cushion.
These questions will help you determine how profitable your business idea is and abandon a weak one. Inspiration is important, but the best business decisions rely on data and analysis.
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