What thoughts come to mind when we talk about starting our own business? Usually, the first thing we think about is a business idea. We want to find a promising, good, relevant idea, to start working in a less competitive but at the same time profitable sphere.
But as the realities of the modern business show, no more than 5% of all start-ups are successful. Why is that? How to get into this category of lucky people, how to choose a good and promising business idea?
Today we will try to answer these not simple but at the same time very important questions. In our article, you will find 5 signs of promising business ideas. We assure you that all these signs were written on the basis of our own experience, experience, and knowledge of our business partners and good friends, who have a functioning, profitable business.
A good and promising business idea: how to know and recognize?
1. Deep faith and involvement in what you are going to do
First of all, the viability of a business idea depends on your actions, willingness to work, goals, and objectives that you set for yourself. If your main goal is to earn money, then you are very likely to never get it. Of course, finance is a great incentive to work and develop your own business, but you need to make money only as a means, as a way to achieve higher and greater goals.
Business is a risk, and there are often black spots when you are not making money, but even working at a deep under-budget. But belief in yourself, in what you do – these are the factors that determine the perspective of your chosen idea. Steve Jobs said: “Imagine that today is the last day of your life. What would you like to do? If, among other things, you’re on the right track to go to work. Your business will be successful.”
You should not just love what you do, but be a real fanatic, a freak ready to follow your goals, principles, and ideals to the last breath.
2. A simple idea – a promising idea
Do not immediately seek to create something majestic, huge, known throughout the world. It doesn’t happen that way. If you don’t believe me, and you’re still thinking about how to do something that can turn the world upside down, then you risk staying in the thinking phase.
Look at the biggest companies in the world – Google, Facebook, Apple – and remember where they started. Social network Facebook initially did not plan to be the largest in the world, but only wanted to unite students of the best universities in the country, and how did it end? And Google, you know that they started simply by organizing books in the library, writing various algorithms, which later became the basis for the search engine. About Apple, I’m sure everyone knows. Steve Jobs and Wozniak started in a garage, that’s where they built their first computers and didn’t even dream of becoming a world leader.
As a conclusion – ideas become big in the process of development, not immediately after “birth”. By the way, think less and be afraid. As Sergey Brin said: “While you think your competitors are launching a naked idea, you think about development, they create a beta version, you think about where to get the money, they earn the first dollars, you think and decide to launch, and your competitors already have the first million. You think they’re acting…”
3. The idea is easy to explain
We’ve already talked about the idea of being simple. But the simplicity is also that you have to explain the essence of the future project without much effort. A beginner entrepreneur will often have to tell you what he does – his friends, potential partners, investors, clients. And if this explanation is delayed for a long time, if you yourself are confused and do not understand some things, then think about whether it is worth doing this type of activity?
I always make an example of Twitter. 140 symbols that we should put all our thoughts into. So try to describe the essence of your business in a few words. Of course, in 140 symbols it will not be real, but a promising business idea should be able to convey literally a few sentences. And you can do that? Is this your idea? If so, that’s a big plus.
4. It doesn’t cost much money
Now there are those who will object to me, but I claim that a promising business idea does not require much money. Of course, I only speak for the initial stages of concept development, the launch of the beta version, and the first months of work.
If at these stages you already need tens or even hundreds of thousands, there is a high probability that the idea is not that good. If it is really smart, the beta version can be done on its own, or at minimal cost, and then already present it to investors, presenting all the positive aspects of this business. Finally, I recommend using Mageworx extensions to minimize your expenses.
5. A small number of steps to the first profit
When and how you will get your first profit from the project – it is hard to say for sure, but nobody prevents you from planning everything. And if already at the planning stage you can see that for the first profit you need to go through many stages, then this business idea will be difficult to implement.
Why? So it’s quite simple, really.
The more stages, the more additional resources, the means, and help will need to be used for their successful passage. Frankly speaking, the promising business idea has a fairly short way to profit. Yes, this path can be passed not in one month, and not even a year, but the stages at least, which allows you to focus more seriously on each specific task.