Every individual has a couple of brilliant ideas and a dream or two that they’d love to experiment. The greatest ideas are those that lead to inventions such as Google or the Vuzix reality glasses that can give you directions. There are also pretty terrible ideas like Segway or the Samsung Note 7, which ended up taking a nosedive off a cliff. Some ideas never even go past the “I have a great idea!” stage.
Let’s say that you’ve just thought of an idea, which you’re thinking of turning into a business. It’s even likely to start generating revenue. So, how do you determine whether that idea is worth looking into? Here are a few tips to establish whether your idea is a hit or a miss.
Can you make it a purple cow?
Developed by Godin Seth, purple cow is a phrase referring to something entirely different from the rest. Ideally, you should come with a product or service that is so remarkable that it’s regarded a limited edition. Remarkable in this context means worthy of peoples’ attention. As such, if you cannot turn your idea into a remarkable invention then you’re better off crossing it off your list.
Likelihood of successful implementation
Based on your assessment, how likely are you to turn your idea into a business opportunity? There are a couple of aspects you should consider here, namely start-up costs, financing, time commitment, dependency on other parties, market size and the extent of competition. If you are short on financing, you can easily apply for an online loan at northcash.com. The creditors on this site offer very manageable Northcash installment loans. But, apart from financing, another overlooked factor is competition. Most individuals only assess whether their brands will be competitive before releasing them into the market.
The truth is that being competitive is not enough. Ideally, you should strive to come up with the best idea that beats all other inventions in the market.
It fills a gap
If your new idea helps to solve a particular existing problem, then you might be on the right path. But, if you’re releasing a product or service in an already-saturated market, the chances of failure are high. Thankfully, there are handy tools that can help you determine the feasibility of your potential products.
For instance, if you plan to start a new barber shop, you can use these tools to determine how many other barber shops exist in your locale. You can then look for data detailing the average amount of money that households spend on personal care, then compare this information with nearby areas.
Talk to potential clients
Surprisingly, this is the one step that most individuals skip. This should not be the case as talking to potential customers can prevent you from making costly mistakes. Advisably, you should interview as many potential customers as possible so that you get different perspectives. This also gives you insight regarding how your target customers work and how they make their purchasing decisions.
Some individuals think of great ideas that never materialize. Then there are others who strive to turn these ideas into realities. Regardless of the category that you fit, you can establish whether your idea is worth investing in by using the points highlighted in our discussion.