Yeah, that’s how most of the entrepreneurs that I encounter when they’re in the early phases and the start-up of their business. They are very impulsive when a new business idea pops into their head, they get excited over, and they start to work on it.
They start building their own start-up, they invest capital to design the product or service, as well as imagine the customers they’ll connect with.
Then, a month, two months, or a half year later, they realise the idea they have is not feasible. They don’t know if anyone really wants what they are selling.
If you are a budding entrepreneur, don’t fall in love with your idea that easily. Validate it before you dive into entrepreneurship. Many entrepreneurs understand their idea, but not the market that will accept or reject the idea.
A survey published in Fortune showed that 42% of failed start-ups offered a product or service with little to no market need. So, how would you make sure that your idea is viable before you start investing a great deal of time and money into what should have been a successful enterprise?
What should you do before you “shoot”?
Ask the right questions
Vague ideas and partial plans will likely cause a rocky start for your business venture. To get the answers you need, you must ask yourself the right questions to help validate your business idea.
- What problems would you or your product or service solve?
- Who is your target audience?
- Why would someone want to pay for your product or services?
- Is someone else doing this? And if not, why do you think no one is?
- What makes you different from someone else out there providing something similar?
- What kind of resources do you need to get this off the ground and do you have any ideas where to get them?
- What has changed out there that make this idea work now and not before?
- What are your goals?
You can write down your answers in a journal to solidify your thoughts. Once you answer all these questions, you can begin the next step in testing your business idea.
Don’t Keep Your Ideas
Although most of the entrepreneurial individuals have an endless source and supply of ideas, most of them keep their ideas only to themselves.
They are afraid that if anyone else finds out their “business ideas”, they will use it to create a successful business with it.
However, if you keep your ideas only for yourself, you cannot validate them. If you don’t validate them, you will probably fail.
You need to get feedback from strangers or potential customers, whether they willing to pay money to buy your product or service. You can conduct a survey by using services like Google forms, or conduct a face-to-face interview with them.
Other than that, you can find potential investors to invest in your business idea. If you are able to get money from them, that means they like your idea and they think it’s viable.
If you can pass all these tests, I would say you have a higher chance to build a successful start-up and reducing the risks of failure.