Admittedly, there are so many business ideas that you can implement today. The biggest challenge most people face is choosing one out of the many business ideas they have. If you are under this category, how do you pick the right business to invest your hard-earned money in?
Answer the questions below as honestly as you can to help you decide which path to take. NB: There is no right or wrong answer.
- Does This Idea Excite You?
The business might bring in a lot of money, but if you are not passionate about it, you will soon close shop if any challenge arises. If the money part is the only thing that is exciting about this idea, please cross it off your list. Because 10 years from now you will be demotivated and will want another idea.
- Are You Financially Capable?
The fact is businesses require capital to start and run. In the 10 plus years I have been in business, having money that can sustain your business for 6 months is important. This question is important. Write down a list of things you will need for your new business and how much they cost.
If the money you have is not enough to start and sustain your business for at least 3 months, again, cross that idea off.
- Who Are Your Customers?
Think about your ideal customers for this business. Include their demographics, characteristics, and buyer motivations. Use their age and gender to help you discover what they love. Will your ideal customer love your product or service? Will they come back to buy soon or refer their friends?
For instance, the customer base for a fast-food joint is different from the one in a Household goods shop. How many times do you buy a carpet for your house as compared to eating food?
- Will Your Business Solve A Problem?
You already have an ideal customer so identify their problems in their personal and professional lives. Is there anyone else who has tried solving their problems and failed? Do you think your business can solve the problems better? If you cannot answer those questions, then move on to the next business idea.
Look into your competitors and see what they are doing and come up with ways of improving what they have. Don’t engage in the current craze just because everyone is doing it.
- What Makes You Different?
What will make a customer choose your business over the other one? An example of two fabric softeners; Downy & Sta Soft. Sta Soft was the first in the business but Downy came in years later and became a favorite. There was something different about their formula.
Here, think about the quality, quantity, the process of manufacturing, and pricing of your product. Would a complete stranger refer your business to their friend?
- How Will You Make Money?
What is the revenue potential of your business? If this business idea cannot generate good money, move on to the next idea on your checklist.
Most entrepreneurs undermine the unique selling proposition of their product or service. If your customer cannot find the value of buying your products, then they will not use their hard-earned money on you.
- What Is Your Growth Plan?
Once you start your business how long do you see it surviving? Set short term goals and see if you have the drive and motivation to follow through. The biggest lie entrepreneurs are told is: You will figure it out along the way.
Businesses take time and energy to break even, and a growth plan is necessary to make this possible. If you cannot put in the crazy hours to see the business grow, please cross it off the list.
To sum it up, your business idea should make money, be low maintenance, and offer value to the customer. This shows the potential for the business to grow and bring in lots of money.
If you are confused about which idea to pick on, join our Business Start-Up Master Class, and build yourself a successful business from scratch.