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How to research a business idea

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It must have been a lot of people who have come up with various business ideas at some point in their lives, and you are no exception, whether you realize it or not.

Some people come up with a certain idea to solve a common problem, which remains unrealized, and a person never seriously addresses this topic again. Other people generate an idea for a business and concentrate on it, trying to immediately take measures to implement it, but something does not work out.

Ideas come in various forms and have different scales. Most bad ideas can be recognized as bad right away. Good ideas can be of varying degrees. In theory, a good business idea is one that solves the problem skillfully and does not have any significant flaws. But not every good idea can make your business viable.

For example, although an idea is good, it can be economically inefficient, which is an obstacle to significant gains. If you have a good idea, but you are not sure that it is sustainable and suitable as the basis for a real business, ask yourself the following questions:

Does my business idea solve common problems?

The first question you should ask yourself is simple. Think about your idea. Does it solve any common problems faced by the average person?

The first key is solving the problem, and not introducing any innovations that no one has ever needed. The second key is a common problem that your business can solve. For example, if you invented a device that allows someone to play the accordion and repair a car at the same time, you probably won't be able to reach a wide audience.

You can do some market research to support your idea, but if your product or service is not in demand, think carefully before you act.

Are people willing to pay for your decision?

You can do some marketing research to get the right answer, but even after just thinking about it, you can come to some conclusions.

Imagine that this idea did not come to you, and that instead, someone comes to you with this.

  • Are you ready to pay for this person’s product or service?
  • How much are you willing to pay for this?

These two questions should immediately tell you if this business idea has the potential to generate tangible revenue.

Is your business idea scalable?

Making money, believe it or not, is just the first step in the process. To thrive in business, your idea must have room for growth, i.e. It must be scalable.

  • Can your idea gradually expand and enter new markets?
  • Can you come up with new, improved business models?
  • Can you expand your business to other areas to make more money?

If your idea is not scalable, and it can exist only in its current form, this will not give you the opportunity to create a full-fledged business.

Does anyone else use this business idea?

This important point needs to be checked and one quick Google search should give you an idea about this. See if there are any other companies that are already using your idea. If this is a great business idea, there is a good chance that someone has already thought about it.

If you see at least one competitor with a version of your idea that is better than yours, then your idea probably has little chance of viability.

Can anyone else do this?

Imagine for a moment that no one has realized this business idea before you.

  • If you introduce it to the world and start selling something special or providing some useful and unique services, how easy would it be for someone else to repeat your idea?
  • How easy would it be for them to make a subtle improvement in this area?

If your idea is not unique, or if it can be easily copied, the likelihood that it will be used by imitators and thieves of ideas (working well within the law) is very high.

Can your product or service be in demand for more than a year?

This is an important issue for the sustainability of your business. Think and reflect critically on your idea. Is your idea something coming and going, or does it have a solid foundation and a long-term foundation?

If this is something unstable and coming, do not forget that for a long time your business will not work. Business ideas that will enjoy a passing interest will not have long-term success. If you are aiming for something big and solid, you need something that solves common problems on a long-term basis.

If you can confidently answer all these questions and have done enough research, you have a good chance to turn your idea into a successful venture. Just remember, the phase of ideas is only the first step of the whole process. From this point on, you will need to do a comprehensive study, write a business plan and start looking for investors. This is a long and difficult process, but thanks to the confidence in your idea, you will step by step approach the big start of your business.

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