How To Test Your Next Business Idea So You Don’t Waste Your Time & Money
Do you have a business idea that is always on your mind?
Do you have an idea that is driving you insane and keeping you awake all night?
An idea that you can’t stop thinking about and makes you think that it has been the idea that will set the turning point in your life.
If so, then why not utilize it and make it change your life?
But no, wait!
There are some very important factors that you need to keep in check before putting your idea into action and starting investing in it.
There are some great names like Pat Flynn, Joel Barker, Neil Patel and much more in the field of blogging or online entrepreneurship, who provide guidelines on how to be an effective entrepreneur and how you can test your next business idea so you don’t waste your time as well as money.
To become a successful entrepreneur, it isn’t necessary that you must have access to capital or area of study; it’s all about having the right skills and the precise process.
Now you might be wondering what the right skills are, right?
Don’t worry, we are here for you.
Here are some correct skills:
As Michael Ellsberg, an author blogger, and public speaker confidently says that
❝The prerequisite to selling is listening.❞
And what he means by this, is that it is very important to understand people, their requirements, relationships, and networks, so you can pitch your business idea effectively.
This will also help your business grow as people talk to each other and you can ultimately get recommended if your services and product stand out. (Keep it in mind: we will be repeating this point over and over in this article, as it is one of the fundamentals of any business).
Entrepreneurs are risk takers but they are also smart enough on creating strategies to tackle one if anything goes wrong.
Know that you can minimize your risks through different tactics, one way you can minimize your risk is bootstrapping. It is one of the most effective and budget-friendly ways through which you can ensure a positive cash flow business.
What you can do is a startup with customer revenues, trade credits, factoring or even by taking help from your customers. Now this is a very important topic we can discuss in details in some other article so that we do not divert from our main discussion.
A successful entrepreneur never gives up. He keeps moving on when others stop, he finds ways about how to overcome seemingly impossible and subdues them. They quickly adapt to new situations and use them to their own advantage.
The Right Approach
Entrepreneurship is a discipline, as Peter Drucker rightly says that:
Entrepreneurship is a management discipline which can be learned and applied.
Thus what we learn from him, is that discipline here refers to a process that can be implied where you discover customers and analyze your problems from a customer’s perspective, then testing if your solution fits the problem.
Then comes the important step where you work-out on how to entice the potential customer into actually buying your product as well as becoming your regular buyers.
Once you have done all this, only then you should actually invest in your business idea so you know that you won’t be just wasting your hard earned money.
The Right Temperament
Do you love what you are planning to be your next big business idea?
Are you ready for the trial and error phase?
Will you continue even if you fail and won’t you get bored if you try it for a few times?
If you get a positive response for these questions, then there is no doubt for your business idea to succeed.
So if you really want your next business idea to be a success rather than a failure, you must bring these qualities in you.
There are a lot of entrepreneurs who rushes into venturing on half-baked ideas, misguided theory or under-researched business plan, which as a consequence cause them the loss of time, energy, and money.
So in this article, we will be looking into some of the main points that you should keep in mind before barging on you next great business venture, so you don’t waste your time and money.
Let’s dive in straight away.
Before you invest on an idea, it is very important that you ask yourself these questions instead of following misguided theories and putting yourself in self-illusion:
- Is your business idea going to generate revenue?
- Can it prove to be a success in your targeted area?
- Is it the ideal idea for you (i.e. do you have an interest in it or will you get bored of it after a while)?
- Who will be your competitors and how will you be competing with them?
There is no denying in the attractiveness of passive income, but every passive income has a huge amount of hard work, intense planning and strategizing on its back.
But how to get your business on the track to success is the real question here.
There are countless books written about it, but the one I like most is Richard Christensen’s analogy of skiing, where he teaches entrepreneurs what approach to adopt for their small business to grow large.
When we ski, we don’t take our skis and point them directly down the mountain or we’ll break our neck
So you see, you do not necessarily have to take your business in a single direction and at a single pace. You have to zig-zag towards your goal. Your idea must have the flexibility to mold and accumulate anything new that you want to add.
Remember, a successful idea is a flexible idea, one that isn’t stagnant and has the capacity to evolve, grow and branch out in time of need. For this, you have to select a brand name that is multi-dimensional and can talk different products and services without making the look out of place.
What matters most in any good business idea is if it can generate revenue for you even, it means a diversion from your overall goal, go with it because this is why you are setting up a business; to gain revenue, so if a new direction to your main idea is helping, you should seize it.
Something that you should always keep in mind is that your focus should always be on your goal and no matter how you get diverted for revenue you should always head back to your main idea.
If you are planning on expanding your business it is important that whatever you gain from your business idea, you should spend a section of it on further improving your business. Funds allotment is the best strategy for expanding the business.
One of the most important things in entrepreneurship that I consider is that you do not need to spend money right away. You need to invest your time and get as many people to help you can get.
For this purpose, you can as students who are looking for internship and experience on any big idea. Other things you can do is talk to your potential customers find out what they want, survey the market and read reviews posted by buyers so you may know what the dislike and what they expect, and find out what your competitors are doing right and wrong (both at the same time.) This will give you some very major points for the startup.
How to start up your next business idea without failing?
Well, the answer is very simple, i.e. to learn from your experiences.
It is a known fact that there rarely anyone who has succeeded without failing.
So what to do?
Well, you can fail and fail, but your failure will have something very important to give you and that is experience, something no online course or experienced entrepreneurs can teach you.
It is something that you learn or get the hard way.
Here is the most relevant quote:
❝Good judgment comes from experience, and experience comes from bad judgments.❞ — Will Rogers
As Confucius says:
❝I see and I forget, I hear and I remember; I do & I understand.❞ — Confucius
So don’t be afraid of failing, be afraid of not trying and never failing, because failing and then standing up again is the secret of success.
There is an important strategy you can follow for your next business idea that consists of four important phases:
Phase 1 is differentiation where you set your product and service apart from your competitors and this will be easy if you already have analyzed the market and the products and services your competitors are offering.
Phase 2 is classifying your product and showing your customers how your product is one of a kind and different from what is already there in the market. This will help to turn potential buyers into your regular customers.
Phase 3 is your business plan, your business plan will help you build a road map that will aid the way for bringing your product to the right market.
Phase 4 is regular surveys. Now that you have launched your product into the market, it’s time for you keep a regular inspection of how your product is doing in the market and what kind of reviews are you getting from your costumers. This will help you further improve your product or service that you are offering. Remember it is very important that you keep in touch with your customers because this is the only way you can show them that you care about them and genuinely want to give them the best you have.
Pat Flynn has beautifully summed up the rule for a successful business idea:
❝One that doesn’t fail and promises success within a short period of time❞ — Pat Flynn
In his book, Will it Fly, he highlights some of the main reasons why your business ideas fail and then give strategies on how to avoid failure by taking necessary pre-launching strategies for your small business idea.
The first thing you should do is refine your business idea by talking about it to almost anyone you meet along the way. You should have the courage to make your idea public. Now that you have made your idea public you should pay attention to what kind of clients you need for your product or service and then choose the correct platform and approach to address them in an effective way.
It is also important to identify your costumer’s demands and put your pre-order according to these needs. You also need to have excellent communication with your customers. Once you have done this, you become a step closer to achieving your goals.
Now it is time for you to test your business idea without the fear of failing. The fear of failing itself is the drive for failure so you must be confident about your business idea and if you are not confident it means that it’s not the field for you, you should reconsider your business idea and do further research.
As said earlier, a good business idea is a flexible idea not just the idea your own thinking about your business venture has to be flexible as well.
For a better launch of your product, you need an amazing description and catchy photos as well as videos if you can manage them.
But here I must remind you that while launching your business idea, you must keep this in mind that your business shouldn’t be just about getting rich, it should be giving a service to your customers that meets their needs.
It has to help you grow, not just financially but morally as well and that happens only when you remain honest about your products and services.
This might take time for you to launch but the customers that you get will be quality customers, once that keep coming for more.
Bottom line is that in order to test your next business idea so you don’t waste time and money it is imperative that you analyze your own potentials as well as of your idea because they are both interlinked.
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