10 questions to help you know if you have a working business idea.

Ready to take on the world of entrepreneurship? In order to find startup success, you need a great business idea. But a winning business idea is more than just something you’re excited about or good at — you have to make sure your idea is actually viable.

Here are 10 questions to ask yourself before pursuing your business idea.

1 .Does it solve a problem?

The best business ideas are those that solve a problem in a way.If there is a problem that affects you, your friends, family, co-workers, etc., then the chances are high that it affects people you don’t know as well .

2.Will people pay for it?

It’s paying customers who validate an idea and determine which ones have the greatest chance for success, said Wil Schroter, co-founder and CEO of Fundable.

“An idea is just an idea until you have a paying customer attached to it,” Schroter said. “Anyone can discredit a simple idea, but no one can discredit paying customers.”

3. what is your price point?

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Charlie Harary, founder and partner of investment firm H3 & Co., said that while there are many ways to solve problems, great business ideas do it in a way that is less expensive than what the market will endure.

“Once you have determined that you are solving a legitimate problem in a scalable way, you need to determine not only the value that it delivers to the world, but what people would pay for that value,” Harary said. “Once you determine the price, then you can assess if your solution is businessworthy or not

4 .Is there a sizable niche market for it?

Without a large enough market, your business idea may never get off the ground. Ruben Soto, CEO of shapewear company Hourglass Angel, said your business should cater to a strong niche market.

5. Are you passionate about it?

Your business will likely take up all of your time, so make sure you’re passionate enough about it to make it successful.

6. Have you tested your idea?

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You won’t know if your business is viable until you test it on strangers.

“Test it — not just with friends who will be too polite to tell the truth, but with honest people who would make up your ideal target audience, and then listen to the feedback,”

“If your target sample is saying [your idea] is fantastic and [asking] where can they get it, you know that you’re onto something, but if they are less than enthusiastic, it’s probably not as good an idea as you thought.”

7 .Are you open to advice?

If you’re not open to changing or adapting your idea to fit what your customers will want, your business idea might not be worth pursuing.

“Success happens when you are willing to listen and consider others’ advice,” said Angie Yasulitis, CEO and managing partner at YaZo Marketing and Business Development Strategies. “Most good ideas take some tweaking to get to market. Being closed-minded is a business killer”

8. How will you market your business?

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“If you have a solid go-to market strategy and a decent product, you’ll probably be successful,” Lipson said. “But if you have a great product without any idea how to reach your potential customers, then it’s going to be really tough to make it successful.

9. Are you being realistic about your goals?

As excited as you may be about a new business idea, it’s important to stay grounded and be realistic about it.

10. Can you explain your idea in the simplest terms?

“When you typically hear someone pitch their idea, it’s usually chock-full of important-sounding jargon that rarely makes sense,” Duggan said. “When you think about your new business idea, ask yourself, ‘Can it pass the grandma test?’ In other words, would your grandma understand what you do? Perhaps your business is solving a complicated problem, but early on, come up with a way to explain it that makes sense to the masses.”

 

TheFounder Magazine

Made Of Founders

TheFounder Magazine is an online business magazine that focuses on starting, running and growing a business in Kenya today

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