If you’re thinking about starting your own business, to have an idea is not enough. You need an idea that works. Being eager to work is certainly helpful, but it is also very important to be well informed.
You need to take certain steps to find out how to transform your idea into a successful business. Business News Daily Editors asked experienced entrepreneurs and other experts about steps that should be taken into consideration when starting a business. These 9 questions will help you with creating a business concept and starting a company.
Will your business solve any problem?
Entrepreneur and co-founder of Web Design School, web designers Mike McGee, assumes that the best business ideas are the ones that can solve a problem. “If there is a problem that affects you, your friends, family, co-workers, etc., then there is a high chance that it will affect those people you don’t know as well,” McGee said.
Will people be willing to pay for it?
It is the paying customers who confirm that your idea makes sense and determine which idea has the best chance of success, said Wil Schröter, co-founder and CEO of Fundable. “The idea is just an idea until it finds a paying customer,” said Schröter. “Anyone can discredit a simple idea, but no one can discredit paying customers.”
What price can you set?
Charlie Harare, founder and partner of an investment company H3 & Co, said that while there are many ways to solve problems, the important thing is that great business ideas do it in a way that is cheaper than other companies on the market.
“Once you’ve found that you are solving the problem in a scalable way, you need to determine not only the value this solution brings to the world, but also what people are willing to pay,” Harare said. “Once you determine the price, you can be critical about profitability of your solution.” A cheaper price will help you succeed in the competition.
Is there a white space in your market?
Without a large enough market, your idea will never get anywhere. You need to find out if there is a specific market for your idea. You will be better prepared if your business improves what already exists and if it provides a solution and fills a need.
And how can you find out if there actually is a white space to start a business? It’s a combination of “research, inner instinct and personal preference,” says Ari S. Goldberg, founder of RNMKR. “I take into consideration overall industry trends, the amount of investment that has been made in the recent years, how much information I can get from a consumer perspective, and whether I’ve heard people talk about it,” Goldberg said.
Doing a market research and finding out how many potential competitors you have can also help you to realize if the chances of starting your business are real. If you have no competition and it seems that demand is high, go ahead. You will likely have plenty of customers.
Are you passionate enough for the idea?
Your business will probably cost you all your free time and it will take some time to succeed, so make sure you have enough passion for your vision. It is important that your idea is what you really care about, not just what you focused on because it seemed to be lucrative.
“From the moment you start your business, it will require an extraordinary amount of time, energy and patience. Ideally, you will start with a vision for which you are passionate, as well as having the ability or experience to realize it”, said Melissa Bradley, Project 500 CEO.