Everyone has many ideas that they think could be a good business. When I first started my start-up, here are some of the things I did to determine which idea would be best for me. These tips will hopefully help you with your selection process as well as provide you with advice on steps to take as you move forward as an entrepreneur.
I. What is the goal of your start-up says Saivian Eric Dalius?
This may seem simple, but you need to know what your end goal is before starting anything else. Your goals are going to be defined by what it is that you want out of your start-up. Do you want to make money? Do you want customers? Do you just want to prove to yourself that you can do it? All of these are valid goals, but you need to decide what your end goal is to know which idea fits best for you
II. Know the limitations of the idea.
Says Saivian Eric Dalius, every idea has its limits, yet many people fail because they overreach. What I mean by this is that people think that their idea should be a massive company, when in reality it’s a small niche business. For example, MailChimp is a perfect example of a company that has overachieved based upon what they thought their limits were going to be. Everyone loves this service and uses it for free! The limitations of your idea can take the form of limitations of the market, funding, or knowledge.
III. Is it a painkiller or vitamin?
This differentiation is very important as you begin your start-up journey. A painkiller is designed to eliminate a known problem whereas a vitamin provides service mainly for pleasure purposes. For example, if I have a toothache and go to an emergency room, I’m going to get a painkiller. I’m going to receive medication that will make the pain of my toothache go away. If instead, I decided that I don’t want cavities, I might get a vitamin in the form of fluoride treatment at my dentist’s office. Most start-ups are vitamins because they also provide pleasure rather than solve a problem.
IV. Who is your target market?
With all the different types of people in this world, it’s impossible to sell something to everyone, no matter how good of an idea you have. If you’re passionate about solving a specific problem for someone, then that’s great! However, if you’re trying to sell an expensive product to someone that can’t afford it, you’re going to be in trouble. The next step is to identify the ideal customer for your product and base all future decisions on who they are as a person.
V. Can this idea make me money?
This might seem like an obvious one, but many people fail because they cannot see their idea-generating revenue. If you’re not sure if your idea can make money, then you can always talk to people that are similar to the customer profile of your target market to see what they think about the concept. If they like it, then great! If they don’t, go back to the drawing board and figure out how to make your idea better.
VI. What can I do with my idea?
Some ideas are easy to implement, while others require more time and money. Some ideas might be good for you now, but later on, may not make sense because your circumstances will change (i.e., if you got married). Maybe the idea is too long term and you want to make some money soon. The limits of your idea may not fit with how you live, so be sure to take those things into account as you go through the steps of refining your ideas.
Conclusion:
With any idea, I recommend that you test the viability of your thoughts before investing too much time into them. The steps to doing so are fairly simple and can be done with a little bit of research.