Updated: Jan 31
Before implementing your business idea, you must first assess its feasibility. Feasible means you're more likely capable of bringing an idea into a product or service that people would get attracted to.
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If you have any business idea in mind, take a moment to ask yourself these questions to determine how good your business ideas are.
1 What is the current trend in the market related to my products or services?
This is a critical question to ask yourself. If you're planning to venture into entrepreneurship, you must be definite whether there is a strong trend in the market related to your business idea.
Business is trading. You trade your valuable products or services with other people's money. Just as people say (which you'd usually hear from stocks and forex traders), "The trend is your friend."
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2 Will it solve the problems of my target customers?
"How will people get interested with my products or services?", you might want to ask yourself. The answer is quite simple. Make sure that your business idea will solve people's problem.
Look into the problems or challenges that most people encounter with their daily lives. From that point, you might be able to find strong business ideas just in case you don't have anything yet in mind and the thought of becoming your own boss lingers into your mind for a while now.
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3 Is it timely to launch my business?
When it comes to timeliness, you must consider factors like the season when people usually buy similar products or services and a surge in demand.
If there has been a recent surge in demand, it would be ideal to look into the industry's overall trend. This is important to make sure that the surge isn't a fad, but rather influenced by the long-term needs of people.
4 Are my target customers satisfied with my competitors' products or services? Is there anything I can do to improve it?
One of the best ways to determine whether your business idea has a good edge to succeed is to research about your target customers' degree of satisfaction toward your competitors' products and services.
By identifying what causes their dissatisfaction you are giving yourself a chance to improve things. Hence, you'll have something better to offer to the consumers.
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5 Do I have a lot of competitors?
Having a lot of competitors means there's a lot of suppliers in the market. In case you're not yet aware (or just to remind you), price is significantly affected by the law of supply and demand.
That means when there's a lot of supply, the price at which people can buy products and services is relatively low. Vice versa, when the supply is low and and more people want it, then you can expect the price to go up.
As you consider acting upon your dream business, it would be best to identify if there's already a saturation among sellers. That kind of market condition is only one of the many other factors you'd have to consider prior to opening. Nonetheless, it is something which has been tested by time to affect your ability to thrive as a newcomer.
6 How is the industry, in general, going so far?
Let's say you're interested in hydroponics, you definitely shouldn't start spending your hard-earned money to start building your own hydroponics system. You must conduct a through research on the overall hydroponics industry at the moment. Research on recent key developments and future insights regarding this type of farming.
Ask yourself, would this kind of farming gain stronger momentum in the future? Is it really better than the traditional farming method? What are its advantages and disadvantages?
It would also be best to conduct on-site visit to already well established hydroponics facilities.
7 Will my products and services be affordable to my target customers?
Pricing can be one of the most difficult tasks to undertake prior launching your business. As much as possible, you'd want to make it affordable for the people while gaining sufficient profit to use for your operations and to pay yourself (as an income).
In you're using raw materials in the production of your products and services, study the past prices of these raw materials, particularly looking at its highest price. Why? You wouldn't want to set your prices based on the lowest cost of your raw materials because it'll be hard for you to significantly adjust your prices when the production expenses gets high.
If you do, you might end up scaring your customers away.
8 Will it be easy to advertise my products or services?
You should take the first step to reach out to your target customers. Ask yourself, "What are the best ways to advertise my products or services?"
If your budget allows, you may opt to hire an advertising consultant to give your advertisement a more professional look.
9 Is there a chance to grow my business?
Being creative and innovative helps your business grow to the next level.
Furthermore, one of the things you need to establish if you're really serious about being an entrepreneur, is to make your vision, mission, goals and objectives. Doing so could also help you remain passionate, focused, and persevering along the way.
Successful businessmen are very futuristic. They always have a vision of what their companies will look like in the future.
10 Do I have adequate knowledge and skills about the industry or my products or services?
If you're starting on your own, you must have (or should acquire) an expert level of knowledge and skills related to what you're selling.
Remember that as an entrepreneur, you're now in charge of the general management of your own business. You could hire your staff and delegate tasks but your supervision (leadership and management in general) is of utmost importance.
11 Is this business in line with my my personal goals and objectives?
The moment you start your own business, I believe you're highly driven by your passion. But that is not enough. You also need to look ahead and into the bigger picture of how owning a business can affect your life.
This is especially true if you have decided to quit your job and somebody's relying on your income (let's say your wife and/or kids).
12 Do I have the necessary initial capital to launch my business and to keep it running?
The capital that you can use launch your dream business, does not only include money (financial/ economic), but other resources as well. You have to have human and social capital as well.
13 What ways can I profit from my business?
As you establish your business, you need to have figured out its sources of revenues. It would be best to offer a variety or related products or services to cater to a larger group of consumers.
It isn't practical to offer just one or two products or services because it may mean limited potential sources of income.
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