Dreaming about the lifestyle of an entrepreneur and having financial freedom makes trying almost worth it, at any cost (in a good sense of the word). Imagining that you can hit the “big shot” and multiply your income causes enthusiasm and energy to overflow.
However, the question that invades us and that accompanies us in the process is how to know if that business idea we have in mind will be successful ?.
And while there are no patterns or formulas to answer this question, there are some basic methods and premises that every entrepreneur should know to be able to measure the potential of a business idea and take safer steps in your project.
Like any planning process, it is essential to take a pencil and paper and begin to answer the following questions. The end result will be a clearer mind as to the execution of the idea and a qualitative measure of the income potential it can have.
Is it a new business idea?
What you have in mind, is it a totally new concept or is it a replica of something that already exists?
If your idea is new, the chances of success and failure are 50-50 due to the fact that it is something that does not exist and therefore the competition would be practically nil. Your risk level is high but you can also be sure that if your product or service proposal is accepted, your potential for financial success will be very high.
On the other hand, if you business model it already exists and your objective is to aim it to capture an unexplored market and taking advantage of a proven concept, then the risk is lower and you also have enormous possibilities of success. In this case, you should investigate very well the competition you may have to be very clear against what or who you have to compete against.
Is there a potential market for your business idea?
Some ideas can bring great and phenomenal products to life. Except they are focused on the wrong market and therefore fail. So the next obligatory question is do you have a potential market for the business idea What do you have in mind?
If you are not totally sure about it, you should spend enough time to research it by doing a basic market study. If that market does not exist at the moment, it does not mean that the idea is bad, simply that you have to find where that customer is who will be interested and will buy your product.
In any case, this will lead you to define the profile of your client and how you will reach him, which is part of your business plan.
Is your proposal legal?
Many ideas are great but not necessarily ethical and legal. Is your idea founded on the basis of respect for life, liberty and property?
It may sound obvious but answering this question will save you not only from failures but from future problems. The business ideas that are built on the destruction of the earth, mistreatment of animals, deception of people, misuse of copyright, exploitation or other high-risk activities are definitely doomed to failure and are not recommended at all.
Do you have the knowledge and the ability to execute that idea you want to undertake?
Again, you may have a great profitable business idea in your hands but is this viable ?.
“From said to fact there is a long way“- the saying goes – and that is that for that great idea to become a great business it is necessary to have fundamental skills in negotiation, administration and marketing, among others.
Of course, you do not necessarily have to do it or know everything, but if you are going to lead a company you will have to know the business in depth, be a sales expert and in any case hire adequate personnel to complement you, but the ability and knowledge to execution are decisive for the success of your company.
Is this the right time to set up your business idea?
Did you know that producer James Cameron confessed that he had all the necessary technology for the assembly of the film “Avatar“Since many years before but who did not produce it until he considered that the public would be ready to accept this type of film?
And it is no secret to anyone that it was a resounding film success that earned millions of dollars.
This is precisely what I mean by defining the right moment. And to know it you will need more intuition than any other resource because this is something that only your heart can confirm. Knowing how to wait is also a quality of the great entrepreneurs of history.
You must be very clear that desire and enthusiasm are important but they are not the only elements you will need to start a business. Many people with good intentions make the serious mistake of speculating, assuming and hoping that “by fate” everything will work out.
In any good project, for it to be successful, 80% must be dedicated to planning and 20% to execution.Video
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