Recognizing a good business idea is an indispensable skill in the business world. You may be thinking of starting a new business or maybe you are an investor and you’re looking for a guide on how you can confidently choose to invest in a business and stand little to no risk of being at loss, this article will climb up your list and become your favorite as it offers tips on how you can smartly recognize a good business idea.
A GOOD BUSINESS IDEA SOLVES A PROBLEM – A good business idea must be able to clearly point at a particular problem in the world and provide a flawless solution to the problem. There are many businesses out there already, so having a business that does not solve any problem in the world is a predictable journey to nowhere. Such a business idea has all the tendencies to fail because what it means is that it is not needed i.e. it is useless.
A GOOD BUSINESS IDEA MUST BE SCALABLE – Scalability in this context means your business must have been planned to be able to accommodate growth and enlargement as the market gets larger. It shouldn’t be limited in its ability to satisfy the demands of an ever-growing market. The success of a business can actually be measured by how much it has grown, so if a business is not scalable, it will soon pack up because growth is not staying on a spot.
A GOOD BUSINESS HAS REASONABLE PRICES – Does the business plan project a reasonable price? Will people patronize the business at such price? Will you make reasonable profit with such price? Your price can either be too low (to your detriment), too high (also to your detriment). Or just within the perfect range (everybody is happy!). Lots of fresh starters make the mistake of trying to attract customers with a low price and eventually increase the price along the line. Remember that competition is a very constant thing in the market and you’re one of a ton of other businesses offering that service. The customers may leave when the thing that attracted them is no longer available and find another business that can give them that. If you are looking for something to attract your customers with, make sure it is something that will be constantly available and that can even get better, never worse.
A GOOD BUSINESS IDEA IS UNIQUE – A question to ask when checking how good a business idea is should be “How does it stand out?”. Yes, is it different from the ton of other businesses out there? A good business must have something to offer that is not commonly found in other competitors and also very unique that it won’t be easy to copy and if it is copied, it will still remain your signature because you have also made plans to improve on your ‘selling point’ continuously.
It is important to know how good a business idea is before starting it, so that you do not end up losing more in a bid to make more.