You have a good idea for a business, you’re ready to make your dream a reality, but you just can’t ignore the little voice in the back of your mind, asking ‘is my business idea viable?’ According to the Federation of Small Businesses (FSB), around 80% of UK companies fail within their first year. So how do you ensure you’re on to a winner?
In this article, we’ll cover six things you should be looking out for that clearly indicate your business idea is a viable one:
- It solves a problem
- Other people think it’s a good idea
- You’re passionate about it
- It’s not been done before…well, not like this at least
- You have realistic goals in mind
- You’re flexible and open to advice
Read on for more detail, plus we’ll share information on how Countingup can help you bring your new business vision to life.
1) It solves a problem
If you’re constantly encountering an issue, there’s a good chance it’s affecting other people as well. If your business idea sets out to solve this problem, then you’re already on the right track. However, that isn’t always enough. Of course, people enjoy convenience in this day in age, but you need to ensure that the problem is big enough that they would be willing to spend their hard-earned cash on solving it.
If you believe that your product or service is a ‘must have’, rather than a ‘nice to have’, then you can be confident that there will be a ready and willing market.
2) Other people think it’s a good idea
When you tell other people about your idea, how do they react? If they are getting excited about it, then that’s a good sign – especially if you’re not just asking friends and family who are more inclined to be polite. If, on the other hand, you’re met with confused faces, perhaps it’s time to have a re-think. The best business ideas are ones that are easy to understand.
If you’re not sure how graspable your business model is, try running it by someone external who has no relation to your business or industry. If they can easily understand it, then prospective investors and customers are more likely to as well.
3) You’re passionate about it
It’s no secret that starting a business takes a lot of work. To get your idea off the ground, you’ll be spending most of your time thinking about it, talking about it and working on it. Can you picture yourself doing this? If the thought of rolling up your sleeves and getting stuck in gets you fired up, then you might just have what it takes to be a success.
Whilst your business idea may be the vehicle that drives everything towards your goals, passion is your fuel. If you truly believe in your product or service and are willing to share your story with people, your brand will be built on authenticity and more likely to attract the right customers. Did you know, 90% of consumers believe that authenticity is a key factor when deciding what brands they want to support?
4) It’s not been done before…well, not like this at least
It’s great if you can think of a business idea that’s completely unique, but this definitely isn’t a requirement for success. In fact, it’s more likely your idea has been done before. The key to creating a viable business in this case is making yourself stand out from the competition.
It’s therefore a good idea to check out your competitors before defining your USP (unique selling proposition). It may be tricky to ask yourself ‘what makes me different?’, but it’s extremely important if you want to reach your goals. The most successful businesses have a distinct identity and a unique concept that’s able to draw customers in. If you’ve taken the time to define this, then you’re already on the road to victory.
5) You have realistic goals in mind
So, you’re passionate, other people think your idea is great and you can see your business becoming a big success in the future. But are you setting realistic, long-term targets? Yes, there are a lucky few that become overnight successes, but this is very rare.
When putting together your business model, remember to keep your goals SMART:
Specific – what exactly do you want to accomplish?
Measurable – how will you measure your progress towards your goal?
Achievable – how can you make it happen?
Realistic – does it make sense?
Time-specific – what is a realistic deliverable date?
If you’ve got actual figures in mind and ideas on how to achieve this while measuring performance, you’ve already got the right mindset to ensure your business will be successful.
6) You’re flexible and open to advice
In order for your business idea to be a viable one, you need to be willing to adapt your idea based on customer demands and changing market conditions. This doesn’t necessarily mean that the customer is ‘always right’ or that you should change your product or service based on individual opinions. Instead, you should be able to look at broader trends and adapt your business model to reflect that.
The most flexible business owners are often the most profitable. After all, it’s no good offering a product or service that is no longer relevant to your audience.
Run your new business more efficiently with Countingup
Bookkeeping and tax admin can be stressful, especially if you’ve never done it before. That’s where Countingup comes in. The app offers a business current account complete with free built-in accounting software.
Countingup automates the time-consuming aspects of your financial admin so you can focus on getting your business up-and-running. And the best part? It can all be done in the palm of your hand with the Countingup app.
Find out more here and sign up free today.