How do you know if the public would welcome your business idea or even patronize it? These questions make this phase of the entrepreneurship journey a delicate one. The truth is the level of involvement your business idea has in societal improvement best shows how that business is valued. This is why every entrepreneur is a problem solver, first pushed by his/her own need to be self-reliant and secondly driven by their ideas. But how do you know if your business idea is bankable? You can look out for these 7 sure indicators that your business idea is profitable.
1)Does It Solve A Problem?
Over and over again, entrepreneurs are reminded of the importance of solving a problem. Great business ideas were created for that reason: To make lives easier and better. That is how you know a business idea that is profitable. When People pay for it’s products or services, convinced it has a positive impact on their lives. Ride-sharing services were established to make transportation comfortable and affordable, with the ease of confidently getting to places. This would have been quite difficult without the advent of Google Maps used by the drivers. This also highlights the importance of Google Maps and every other business idea that was created to serve humanity. So what problem is your business idea aiming to solve? Does it have any impact on the standard of living? Why would people patronize that business? This brings us to the next point.
2) Why would people pay for it?
Let’s assume your business solves a problem, and some other entrepreneur solves a similar problem. What then makes your business worthy of payments over the other entrepreneur? The key to this is not only solving a problem but doing it uniquely. If your competition portrays his or her idea more uniquely and acceptably, people would prefer to pay for that rather than yours. So even if you are already solving a problem, you need to do so uniquely.
3) Is that idea your passion?
Business ideas also stem from the passion of the entrepreneur. Entrepreneurs are more comfortable developing and sustaining businesses that they love to do rather than just an idea. The truth is the entrepreneurship journey would get hard, exhausting, and may sometimes look like it’s heading nowhere. It also comes in the form of an entrepreneur beginning to lack the enthusiasm to get the business over obstacles. And one of the best fighters of this phase is your passion for the business. So rather than just go for any business, follow the one you have a passion for and you would get paid for it.
4) What is the opportunity for your business?
When deciding to solve a particular problem, always go for problems that have a sizable niche. In a country like Nigeria where the demography favours youths rather than older people, it would be advised to build more businesses for the majority. This only means that you would have more people willing and interested in purchasing your products that appeal to them. This should always be foremost in the minds of entrepreneurs. Who am I creating this business for? Does the population favour product sales? One must cover every possibility on the drawing board, and targeting a sizable niche is one of them.
5) What’s your pricing strategy?
Firstly, are you creating a product for luxurious purposes? Or are you simply making products and rendering services that are affordable to the general public? No matter how impressive your business idea is, it’s no use if people do not purchase what you are selling. This is why after targeting your niche you need to focus on pricing. Some businesses break into the market using price as a strategy. They do this by placing their prices overly low to entice customers into early patronage. However, your strategy should place prices carefully to encourage buys from customers.
6) Has your business been tested?
Business ideas should have been thought of by individuals with the hope of acceptance by the public. And just like every thought was born out of certain inspirations, it needs to be tested. A business idea can be tested by friends, family, even random individuals. The target is to get honest reviews to show areas that need improvement before the final launch.
7) Do you believe in it?
The business world is an ever-dynamic environment, but an entrepreneur must not bend to the terrain. The internal locus of control must be high, and an entrepreneur must first believe in their profitable business idea before someone else would. So, what level of belief do you have in this new idea of yours? Do you think it would be successful? The public’s acceptance is inspired by the entrepreneur’s will and desire to put the business out there; only one who believes can sustain a business idea.
Your business idea needs to go through certain steps to determine if it is a good idea let alone one worth investing in. These 7 indicators can help you know if your business idea is profitable.