So you’ve got a business idea that MIGHT. JUST. BE. THE. ONE.
It ticks a lot of your boxes. It would allow you to focus on something you’re passionate about. And you’d get that much needed flexibility and freedom that’s just not possible to have while working for others.
BUT how do you know if it actually has a good chance of making the transition from EXCITING IDEA to SUCCESSFUL BUSINESS?
Here’s three of the MOST IMPORTANT questions I get my clients to think about when assessing whether a business idea is worth pursuing further…
QUESTION 1: WHAT PROBLEM ARE YOU SOLVING?
A lot people will tell you that the main reason businesses exist is to make money. While it’s true that a business must bring in the moo-lah to survive (and thrive), that’s not the real reason why businesses exist...
Businesses exist to SOLVE A PROBLEM for someone.
Think about it. People will only part with their hard earned cash if they are getting something of value in return. Helping people SOLVE A PROBLEM is how businesses create that value. In other words, ALL businesses make their money by selling solutions to problems.
So how do you work out what problem your (potential) business is solving?
It might already be staring you in the face, but for many people It’s not that obvious at first glance. That’s because a problem is often expressed by people as either a FRUSTRATION or a DESIRE.
So if the problem you're solving is not immediately obvious to you, instead ask yourself - what FRUSTRATION or DESIRE are you addressing for your target customer or client?
It can often be helpful to write down your answer using words your target customer or client might use, like in the examples below:
If you can nail Question 1 for your business idea, then move on to Question 2.
On the other hand, if you’re having trouble answering this question then you may need to ask yourself whether or not you someone is actually willing to hand over money for whatever it is you're thinking of selling.
QUESTION 2: HOW IMPORTANT IS THE PROBLEM YOU ARE SOLVING?
The bigger the frustration or desire a person has, the more likely they are to be interested in finding a solution.
So ask yourself: do you think the problem you’re trying to solve is big enough / annoying enough / frustrating enough / important enough for people to be willing to seek out and pay for a solution?
Would their lives be that much better if they could find a great solution?
Don't be afraid to ask for feedback on this. Try to find some potential customers or clients who have this problem. Find out if it’s something they’re honestly keen to spend money solving.
If you feel confident that the problem you’re focusing on is important enough, move on to Question 3. If you're not confident, then it could be time to head back to the drawing board to re-work your idea, or think of a new one.
QUESTION 3: HOW WELL CAN YOU SOLVE THE PROBLEM?
This final question plays a big part in determining your business’ POTENTIAL FOR SUCCESS.
That’s because the biggest opportunities are usually found where there are no existing solutions to a problem (usually pretty rare), or more commonly, where existing solutions are not doing a very good job of solving the problem.
There are thousands of different ways to solve a problem. And there are many different types of potential customers or clients out there, each with a different idea of what they consider to be important when looking for solutions.
No doubt there will already be solutions out there for the problem you are looking to solve. Ideally though, none of these existing solutions are perfect for the particular type of customer/client you are targeting.
The opportunity for you is to find a way to solve your target customer or client’s problem better then anyone else.
‘Better’ could mean:
So dig deep to understand the exact problem your potential customers or clients are having and think about the things that are really important to them in a solution. Ask yourself - how well does your business idea address these?
People will always look for the best possible solution that’s within their budget. If you don’t solve the problem better than others, then you’ve got very little chance of being chosen.
SO, IN SUMMARY:
Before you go any further with your business idea, be sure to ask yourself:
Can you clearly describe the problem your business is trying to solve from your customer or client’s point of view?
Is the problem you're trying to solve big enough / annoying enough / frustrating enough / important enough for people to be willing to seek out and pay for a solution?
- Would your target customers or clients consider your solution (product/service) to be considerably better than what’s already out there?
If you can answer YES to all three questions, then give yourself a pat on the back, your idea is definitely worth exploring further.
WOULD YOU LIKE AN EXPERT OPINION?
If you’d like help in evaluating your business idea so you can get cracking with confidence, book in for a Hello Freedom Business Idea Sense-Check!
It’s a one-on-one consultation (over Skype) where we’ll take an in-depth look at these questions, plus many others, to help you decide if your business idea is a ‘go-er’.
Looking forward to hearing from you!