Home EDITOR'S PICK 5 CRITERIA FOR EVALUATING YOUR BUSINESS IDEA.

5 CRITERIA FOR EVALUATING YOUR BUSINESS IDEA.

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Business devices and documents at the workplace, unrecognized businesspeople sharing the ideas on the background

Every successful small, medium or big business today agrees that to get to the level where they are said to be successful, a whole lot went into ensuring that they got the business ideas right.

Getting your business idea right is pivotal to the success or otherwise of your business. So in this piece Bizintelng.com will ask five pertinent questions which you need to run your ideas through to know how effective those ideas would be.

If you can sincerely tick off these boxes in the affirmative, then it’s a great start:

  • Are you clear about your revenue model? It might sound easy, but understanding exactly how you intend to make money from that business may not be that easy. For that your business, you need to identify all sources of revenue and how to exploit them. The clearer you understand your revenue sources, the easier for you to understand who would be your likely customers. Most tech-business struggle to clearly identify their credible sources of revenue. Review your model again to ensure you fully understand your revenue model. If you are struggling with revenue generation model, you can get ideas from this article.
  • What Problem is it solving (Value Proposition)? Every good idea is birthed to answer a question, to correct a flaw. What value is your idea intended to add to the market space? It is not a great idea if it does not seek to move away from the norm or better, do something out of the ordinary. There should be a unique problem your idea is going to solve, else, it is not worth the time.
  • How big is the Market (Market size, Market growth, Market share)? The idea running through your mind right now, do you have the available market to patronize you once you set it rolling? If you do, what are the growth potentials in the said market (because a good idea looks into the future asking what next step there is for every service or product), so the market you have, when you want to take your business to the next level can it sustain it? Also ask yourself, that idea, if you set it out, what share of the market can you have to yourself? Answering these questions about your available market determines how good and viable that business idea is.
  • What differentiates you from what is already out there (Unique Selling Proposition)? Every idea you would ever dream up falls into an already existing industry with people rendering similar service or providing same goods like you intend to. That does not rule out great success for you as long as your own idea can give us something unique, something to ‘wow’ us, something we have seen done before. So that idea should have a unique tweak to it to make it exceptional, then it is a great idea. That different thing should be of benefit to your customers and yourself. Convenience or hassle-free payment can be a good differentiator. It doesn’t always have to be difference in product design.
  • How many Competitors do you have (Competitive Analysis)? Knowing who you are going up against in a knife fight raises your odds at winning. Your idea does not pass the test if it does not know every single competitor. You should have done a thorough SWOT analysis of your competitors, and honestly come up with counter measures for every issue in that analysis before you can give your idea thumbs up.

Having considered these questions, can you sincerely tick off the boxes now affirmatively that your idea is good enough?

If not, then Bizintelng.com can you help refine and improve your entire business model.

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