Suppose we find ourselves in the situation where we have found an attractive business idea, but before we put it into practice we want to know if this idea will be feasible and will succeed.
For this the formal form is elaborating a business plan, however, before we do a small research to know quickly if our business idea could become a profitable and successful business, or, if not, we would have to find new business ideas.
How to know if a business idea will succeed
This small research could consist of:
Determine if there is enough market for our product
Before we implement our business idea, we must determine if there is enough market (enough consumers) for our future product or service. Our business idea may look attractive and innovative, but if we do not have enough market, our future business may not be profitable.
To know this, we can visit the markets, the shopping centers, or the places where they are commercialized or offer products similar or like ours, and analyze if there are enough consumers for them. We can also do small surveys or interviews where the questions would be oriented to find out if the respondent or respondent would be willing to consume or acquire the product or service we are going to offer.
Make a budget
Many times, the optimism for a new business, makes us forget the real investment that may have, overlooking the need to elaborate a meticulous budget of future income and expenses of the business. This study should be done in the business plan, however, before this, we can make a quick estimate of future income and expenses.
For this we can consult on possible income and expenses to people who have been or are in businesses similar or like the one we want to create, we can visit our future competition, and estimate the number of consumers they have, and the average expenditure they make each. To calculate the expenses, we can make a list of the equipment and supplies that we will need, visit the places where we are going to buy them, and analyze the prices.
Once we have an approximate total investment of the business, we will analyze if we have the necessary capital, or if we will have the possibility to request a loan, either to a family member or friend or to a financial institution. And then, comparing the investment with the income we have planned, analyze if the business would be feasible and profitable.
Study the competition
To know if our business idea could become a profitable business, we must analyze our future competition. Analyze how many similar or similar businesses we want to create, exist and how competitive they are.
The market for our product or service may be broad, but if there is too much competition, and it is competitive, then there is probably no room for our business.
However, even if there are quite a few competitors, if our product is of quality, and has a good differentiation, it is likely that consumers will leave the competition to choose us. A good way to differentiate ourselves may be to offer excellent customer service.
See if we have the necessary knowledge and experience
To apply a new business idea, it is necessary that we have knowledge and experience in the business theme that we want to create. For this, it is necessary that we have had or worked in similar or similar businesses.
However, if we do not have experience in the subject of the business that we want to create, we can compensate it with a good preparation, for example, to take some course on the subject; Or meet people who have experience in the type of business and who can help us, for example, by recommending good suppliers or advising us in some aspects that we do not know.