Determining The Viability of Your Idea

How do you validate your idea to determine whether it can be a business success and help you achieve your personal and professional goals as an entrepreneur? There is no magic formula, but there are certainly ways that you can have a better sense of whether your idea has legs.

Here are some techniques to think about:

  • Unique Value Proposition. In addition to solving a business problem, you must be able to do so in a way that is unique so that customers turn to your product or service. Take some time to hone in on why your solution is unique. Try using a technique they called the “seven why’s”. Ask yourself the question “why are we unique?” and then when you get the answer, ask yourself “why?” seven times. When you get to the end, you will likely be honing on why your business is different.
  • Hone in on a Business Problem. Businesses succeed because they solve a problem for a consumer, business or other customer. You must be able to clearly articulate the business problem you’re solving and why that problem is not being solved by alternative products or services. Clearly lay out the specific business problem that you believe your product or services solves.

“We WILL be there with you every step of the way.” 

  • Consult Those Who Will be Candid with You. Obtain the advice of colleagues or friends that you consider to be smart business people. Keep in mind that this is not necessarily your best friends or the people you are closest to, but rather those that have a business sense but that will also be candid with you.
  • Competition. Understanding your existing and potential competitors is very important when it comes to evaluating your opportunity. Take a look at existing competition and also at potential competitors that may target the same business problem. Don’t be discouraged by competition as every business has competition today. But understanding the competitors that exist and how they are attacking the same or a similar business problem is essential to determine the viability of your idea. One technique is to make a chart that lays out the top five or ten values or features of a competitor and scores each on a scale of 1 to 10. Then score yourself. This will give you a basic understanding of competitors in their strengths and weaknesses. And have someone other than you do a rating for your company because as we know we are often not objective about our own solution.
  • Business Model. You must be crystal clear about how your business will make money. Specifically, how are you pricing your product and service and how will that approach ultimately lead to revenue and ultimately profitability. If you cannot clearly articulate this, then go back to the drawing board because this is essential. There are many entrepreneurs that start businesses and garner an audience, but do not have a way to turn that into a profitable enterprise.

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