After generating an idea, it’s crucial to understand whether or not the idea is worthy and profitable. In order to define how good an idea is, one may proceed from the following steps.
1. Describe your Idea clearly
A business idea starts to be more comprehensible after describing the key elements of a business model:
· Value proposition: what clients’ problems does your idea solve?
· Product: what are you going to be paid for?
· Clients: what audience are you aimed at?
· Market: where is the start-up likely to become a leader?
2. Assess the market presence
In order not to waste your time, it’s essential to understand the current market potential. Even though your product has a great value and quality, they will not bring money if your clients are not ready to pay for them.
3. Decide whether you are actually ready to do it
Building a successful business takes a bunch of time. Start to do a project only if you are ready to spend at least 4 years on this. Some businesses can compel you to move to another country, others — to do what you don’t like or communicate with disagreeable people.
4. Test the feasibility
It has two aspects: technical (not all ideas can be technically implemented) and personal (not all ideas are in your nearest scope of development). In order to test them:
· research analogues and find out if someone has done it before
· talk to technical specialists
· appeal to potential contractors and suppliers
· create a product prototype if possible
5. Check the economy convergence
The cost of attracting a client to your business and the cost price of a product have to be lower than this client’s income. This is called unit economy. In order to forecast the unit economy, you can use the indicators of similar businesses, expert analyses, and MVP launch.
6. Verify your personal value for the project
A team is one of idea dimensions. Your contribution to a business idea shouldn’t be limited to its generation. Otherwise, such an idea doesn’t have any value and can be easily implemented by someone else. Does this business idea need you?
What is important to assess an idea in your opinion? Share in comments 💬