What to Do Next When You Have a Good Business Idea
Starting a business requires an enormous amount of time and energy, so it’s important that you find an idea that you’re passionate about. You can discover business ideas by reading the news, identifying market trends and new fads, or even looking at what existing businesses are doing that you think could be improved.
Start Talking to Your Potential Customers
Whether you’re grocery shopping, getting your hair done, or driving down the road, sometimes an idea strikes you that seems like it could be a profitable business. But before you jump all in, it’s wise to test that business idea with potential customers.
When talking to your potential customers, you should be ready to hear a lot of different feedback. You’ll find out how many people would be interested in your product, how much they think it’s worth, and what problems you should be addressing with your business.
You’ll also want to find out what your competitors are offering, how satisfied their customers are, and what growth strategies they’re using. This will help you fine-tune your business plan and develop a strategy to beat them.
It’s important to talk to potential customers with whom you have a good relationship, so that they feel comfortable enough to give you honest feedback. But if you can’t find anyone to talk to, you can also ask trusted associates to play the part of your prospective customers. For example, if you’re starting an Uber-like service, ask your friends and family about their experiences with taxi companies and how they would respond to your proposed service. Then, ask them about how they’d feel about paying your price. You may be surprised at how much valuable information you’ll get from these conversations.
Analyze Your Competitors
If your business idea has a chance of succeeding in the market, it will likely have competitors. It’s important to know what they are doing so that you can prepare accordingly. To do this, perform a competitor analysis.
A competitor analysis is a study of other businesses in your industry that are competing for the same customers. This can help you learn what works and what doesn’t for them, and it may also inspire new ideas that you can use in your own business.
To start your competitor analysis, put yourself in the shoes of your target customer. Think about what they would do if they didn’t choose your product or service. Search for businesses in your industry online, and make a list of the ones that pop up. You can also ask current customers about the alternatives they have used in the past.
Once you have a comprehensive list of competitors, categorize them into three groups: primary, secondary, and tertiary. Your primary competition has a direct product offering that is similar to yours, and they are the companies you should be most concerned with. Secondary competition offers a different product but is still targeting the same audience, while tertiary competition has products that are tangentially related to yours.
Once you have completed your competitor analysis, prepare a SWOT analysis to evaluate your strengths, weaknesses, opportunities, and threats. This will help you sift through the information you have collected and take actionable steps toward launching your business.
Build a Team
It takes a team to develop a business idea into a product that customers will buy. So, once you’ve determined that your idea has a good chance of success, it’s time to start building your team. When looking for team members, be sure to find individuals who share your vision and values. They should also have the skills you need to bring your idea to life. Ideally, they should be open to new ideas and willing to work hard. Getting referrals from trusted colleagues is often a great way to find potential team members.
Once you’ve gathered a few people to help with the project, you can begin interviewing them. Ask for references and then conduct a phone screening or face-to-face interview. During the interview process, be sure to ask questions about their experience and how they would approach the task at hand. It’s also important to discuss your expectations and the role they will play in the business.
It’s important to remember that there isn’t a business idea that has never been thought of before. That’s why it’s important to do your research and find out what’s already out there. This will help you determine if your business idea has any competition. If there is competition, you’ll need to come up with a strategy to differentiate yourself from them.
Get Feedback
If you’re not sure whether your business idea is a good one, it’s important to get feedback from others. This will help you validate your idea and make sure that it’s something that people will actually want to buy. There are many different ways to do this, but some of the best methods are online polls and surveys. This way, you can get feedback from a large group of people at once.
Another great option is to find forums that are focused on your industry or target market. This will give you a chance to talk to people who have similar interests and see what they think about your idea. For example, if you’re interested in starting a health supplements business, you can look for forums that are related to fitness and wellness to get feedback on your idea.
It’s also a good idea to ask for feedback from friends and family members. However, be wary of their opinions because they may not always be honest with you. They may say that your idea is good because they like you and are trying to be supportive.
Instead, try to find a few people who aren’t your closest friends and family and ask them for feedback. This will ensure that you’re getting unbiased opinions. You can also search for groups on social media that are specifically geared toward entrepreneurs and inventors to get feedback on your business ideas.
