Cast to the side of these profitable, innovative companies, however, are billions of business concepts and ideas that either never got off the ground or ended in financial failure for any number of reasons. When we think we’ve thought of a good idea for a business, how can we make sure it is a strong one? What are the hallmarks of a great business idea?
It gets you excited
How can you get customers and investors interested in your idea if you’re not keen? First and foremost, if you’re starting a business or have a great new idea that could potentially make you money, one thing is key: you’ve got to want to do it. If your business idea doesn’t make you feel excited and motivated to work at it, then it’s probably not worth starting.
It’s something you know
For a successful business idea to succeed, it’s vital to know the industry that you’re getting into. If you’re not confident with the intimate details of your idea and how precisely it’s going to grow and potentially adapt in the future, then it won’t reach its potential.
It’s been approved by others
Some people with bright ideas are suspicious of this step, and don’t want to divulge details of their precious money-making concept to anyone in case it is stolen or appropriated. And while it’s wise to be wary, it’s possible to copyright your creative concept and then talk your idea through with a few trusted confidants. It’s true what they say: like any living thing, an idea needs oxygen to grow and getting your friends to critique aspects of your business will help you refine and strengthen it.
It solves people’s problems
The best business ideas are so successful simply because they solve people’s problems. If your concept is able to make lives easier, then it has every chance of doing well.
It’s not got much competition
Have you considered any other businesses or concepts who are providing a similar service that you’re aiming to provide? Particularly if your idea could be a local enterprise, are there people doing a similar thing in your local vicinity? If not, the demand for your idea will be higher.
It offers something new
However, it’s also fair to say that some of the biggest companies in the world such as Facebook or Google have sprung up despite heavy competition. So, if your idea faces opposition, it’s not the end of the world – but you must beat them at their own game by offering something truly different and innovative.
It makes money
Finally, without a healthy profit margin, your idea won’t have legs – it needs to make more money than you think in order to survive. If you’ve calculated all your possible costs, while allowing for rises in inflation and costs, and it could still generate a healthy long-term cash flow, then you’re in a position to unleash it on the market.