How To Validate A Business Idea – Is Your Business Idea Any Good?
There are a couple of phrases that people in business know and understand. “If you build it, they will come” is a common one – but is it accurate? Having a great idea is all well and good, but if your idea is one without a market for it, it is not going to become the million-dollar startup you are hoping for. So how can you validate your business idea to see if it is viable?
Do you have a passion for your idea? If you are simply pursuing an opportunity because someone told you that it is lucrative business then it might not be the right choice.
Having the right idea and inspiration is critical for success. If you ask someone who have failed at launching a business, then you will find that one of the most common reasons for their failure was due to a lack of interest in their own idea. Put more simply, they lost focus on their goals and were as such unable to execute and succeed.
In my experience talking to successful entrepreneurs, the common consensus was that passion is the key driver for successful business ideas. You see, things will get difficult at times – it is inevitable – so if you want to be successful, you need to be in for more than just the money. If your only interest in the business is how much it can earn, you will lose out to others that actually care about mission and the purpose of their business. Their motivations are deeper and they will go that extra mile to succeed.
If you need some help picking your passion, start by considering these questions:
- What have you done previously in your life that you look back on with pride?
- What hobbies and interests do you have?
- What part of your work day matters the most to you?
- If you could write an article on something, what topic would you choose where you could write at least 1000 words?
- What do you enjoy doing for fun and relaxation?
- In your current role, is there any one specific part that interests you more than any other?
- What dreams and passions from your childhood do you have that remain unfulfilled?
- What would you want people to say about you at your eulogy? How would you like to be remembered?
- Who are the people that inspire you in life? How are they impacting others?
Social Media and Content Marketing
Fortunately, there is a great way to check if anyone else likes your idea, and that is social media. Once you’ve picked something you are passionate about, a business that you are in not just for the money, you can use social media to find out if anyone else thinks your idea makes sense.
To do this, you simply need to build a list of customers that are in your target market. These potential customers can be identified by publishing content on the problems you are attempting to solve. People with similar problems will be interested in the solutions you are proposing and will want to learn more.
By building a landing page that ask for visitors’ email addresses, you can send out sales letters for different products. These products do not even have to be built or created yet – it is simply a way of gauging interest. And if you get some positive reactions, you’ll know you are on the right track.
For people looking to start a new business, money is always an issue. Luckily you do not have to do it all by yourself. You can get others – people with similar interests – to invest in your new idea.
However, before finding these investors, you need to be able to show them that your business plan has legs and will succeed. A good way to do this is by having working prototypes and a polished presentation that you can share with potential investors. You would be familiar with this process if you’ve watched the TV show Shark Tank before.
Alternatively, crowdfunding sites like Kickstarter and GoFundMe are a great way of finding potential customers. By using these types of sites, you can quickly find potential fans and future customers. It’s important to understand that if you are not targeting the right audience, you will not succeed in your crowdfunding campaign. This could lead you to believe that your idea is faulty when in reality it was simply the audience you were targeting.
Find a Mentor
Mentors can help you accelerate your growth quickly through their experience, connections and knowledge. A mentor can be someone in your industry that you know – they can evaluate your business idea for you and help you understand if it has potential or not.
Based on their experience and knowledge, they can judge whether an idea will work and how risky it will be. They can also provide guidance on what the best go to market strategies are. Good mentors will also share their own successes and failures to help you grow from their own personal experiences. The cool thing is that they might even invest in your business if they think it can be profitable!