We’ve all had moments where we’ve thought of an idea that feels like it could make the ideal business. For many, those thoughts go about as far as our noses before disappearing. However, for a small minority of dreamers, those thoughts go further enough actually to become a business.
Of course, that begs the question: how can we distinguish really good ideas from unrealistic ones? The answer is unsurprisingly complex. The factors that separate relevant and profitable business ideas from the rest are numerous. However, there are a few signs that your idea could be worth pursuing.
In today’s blog, I’ll go through the critical signs of a solid business idea and what you can consider going forward. If you’re someone with a business idea and want to stress test your concept, this could be a great read!
Is it Simple?
The best ideas are often the simplest ones. Does your business idea try to solve global issues, or does it solve a specific problem? If you answered the latter, you might be on the right track.
Every major company started with a small idea at its center. Amazon used to sell books online outside Jeff Bezos’s garage, while Facebook began as a joke in a dorm room.
While it might be cool to think your idea will change the world, it’s better to think about how it’s going to solve an immediate problem first and think about the bigger stuff later on, if that ever happens.
Easy to Explain
The best ideas are often the ones that can be explained as briefly as possible. Sure, it can be fun to explain the complexities of your work sometimes, but the truth is that most people will barely care to listen when you start. As a result, your idea should be easy to understand and take as little time as possible to describe.
The “elevator pitch” is an excellent way to figure out how good an idea is in this regard. An elevator pitch is a brief explanation that, in theory, should only take up the time it takes to ride an elevator down a couple of floors. Any longer, and you’ve probably lost your opportunity to get people, and investors, interested.
For many, a good business plan is a matter of determining how much time it’ll take to start making a profit. If your idea is good enough that you think you could be making a profit in as little time as possible, then you’ve probably got a good idea on your hands.
For many, starting a business can be a tricky balance of budgeting and saving. Most companies don’t make a profit straight away, but getting to that point faster will always improve your chances of success.
That’s it for today’s entry! Check out my other blogs for more thoughts on the latest development in the digital industry and the challenges of entrepreneurship in the online world.
Until then, see ya later!