Many people have business ideas that seem like they might work. But how can you really tell if you have a good business idea or business concept that’s likely to succeed in a crowded marketplace? In today’s episode, I share how to know whether what you have is a viable business idea or not.
So, you have a business idea that you’re excited about that you want to test on the market. Perhaps you’ve told a few friends about it, and they’ve encouraged you to go ahead with it. But there are other things to consider before you invest your life savings into making it work.
For example, does your business idea or business concept address a want, need, or desire in the marketplace? To know if you have a good business idea or a viable business idea, you have to know which category yours lies in today’s crowded marketplace.
If people WANT a product, they’ll be prepared to spend money on it. When people NEED a product, they can’t go without it, so this automatically compels them to purchase it. DESIRE, on the other hand, is a different level of want.
Second, you’ve got to ask yourself – can you make money from it? How much potential money can you make out of your business concept? If you’re entering a crowded marketplace, what’s your point of difference going to be? These are very important things to answer to know if you’ve got a good business idea.
I talk more about these two factors, PLUS a third one you should consider to help tell if what you have is a viable business idea. Watch until the end of this video to learn all about potential success in your desired business.
-------------------- CONNECT WITH PETER BOOLKAH: --------------------
-------------------- ABOUT PETER BOOLKAH --------------------
Peter Boolkah (AKA The Transition Guy) is the World’s #1 Business Transition Coach whose main passion in life is to work with talented and high performing business owners who are in the process of creating exciting, high growth businesses.
Peter helps you to navigate and transition through the crucial growth pains that all growing businesses experience making it as painless and exciting as possible.
It is important to remember that businesses do not just grow and develop on their own, it is up to us and our teams to make this happen by making every day purposeful.
As businesses grow some parts of the journey will be easier than others and most owners do not have all the answers. Starting a business is one of the most exciting things we get to do and we all have aspirations of achieving great things. In fact Peter is yet to meet someone who started a business with the intention of failing.
Peter’s ultimate life goal is to inspire and empower over 100,000 Entrepreneurs to create long term thriving businesses resulting in the creation of 1,000,000 jobs.
So if you are scaling up your business, you’re in a bu...
(gentle music)- Hi, Peter Boolkah here and welcome to today's edition of The Transition Guy. Now today, let's explore, how do I know that I have a good business idea? Because this is a question I get asked by so many aspiring entrepreneurs. And really the answer is simple. Your business idea, does it address a want, need or desire in the marketplace? Let's look at want. Well, want is something where people are prepared to part with their money with. Maybe it's a new webcam, for instance or a new piece of clothing. They don't necessarily need it, but they want it. In contrast a need could be something like a plumber, electrician, a service or need that basically we can't go without. And then the final one is a desire. Now that is on a different level. That is more of a sort of luxury want as opposed to a normal want. Give you an example for that. Most people have watches but there's a difference between having let's say an Apple watch, which is what I wanted because it had all the metrics and everything, or a Rolex for 50,000, as that becomes more of a desire piece. So you've gotta first determine which category does your idea fit into. Then the second question I would always ask you, can you make money from it? A lot of people say, yeah, I've got this really great idea. And they do it because it's something they enjoy. It is their passion. And the amount of both business owners I come across they say, yeah, it's my passion, it's my passion. I don't care how much of a passion it is, when you are not making money for me, it's a bad passion. So you gotta look at, can you make money from it? And you've gotta start looking whether the marketplace you're going into is a crowded marketplace or whether you've got free reign.'Cause that will determine really how much potential money you can make out of it. I mean, if it's a really crowded space what's your point of difference gonna be? Because a lot of people then enter a crowded space and they compete on money. Well, if you compete on price, guess what? There's only one race and it's at the bottom and whoever's got the most cash survives. Whoever has the least cash goes bust. Not a great place to go. So when you look at your business model what kind of market space are you going into? And finally, most good business ideas don't fail because they're bad business ideas. They fail because they're badly executed. And most people that come into business or start a business I hate to say it, they've never learned business. They've never been taught business. They don't understand the fundamentals of business. And hard work alone on the rare occasion will get you through and make you success. However, the reality is this, most of the time hard work won't get you to where you need to be, educated work will. And for aspiring entrepreneurs you've got to learn the fundamentals of business. You've gotta learn how to sell, you've gotta learn how to market. You've got to learn finance. And I don't mean it in a really deep level but you've gotta understand the finances of your business. You've gotta get these fundamental basics right because if you don't, no matter how great your business idea is, you run the risk of it failing. Now, hopefully you've got some great value out of today's episode. If you have, please like it, subscribe so you don't miss further episodes. And please share it with others so they also get to benefit from the episode. And most importantly, if you've got any sort of questions, you wanna explore the subject in more detail, head over to boolkah.com and get in touch. And finally, last but not least failing to learn is learning to fail. Please stay safe.(gentle music)