Revolutionary ideas gave birth to change. Take a look at Amazon, Airbnb and Uber. At one time, those ideas would’ve sounded ridiculous because nobody could imagine how these concepts can impact people’s lives. However, not all ideas are like Amazon or Airbnb. Some will be awful, and there’s nobody to tell you that it is.
So how do you know that an idea sucks? How can you say that what you’re cooking up isn’t an opportunity at all?
Here are five signs to help you gauge if an idea is worth your time, effort and resources.
1. You don’t know anything about the product or service
Many entrepreneurs enter a business they know nothing about, but they do so because they got hung up on the trend. Although the willingness to learn is a good thing, you need more than that to succeed.
Knowledge and expertise are important in a business not because you need to think of new products, services, or how to sell them. It’s much simpler than that. You need the expertise to lead your employees, design the processes for your business and plan for future activities and collaborations.
You have to understand your product and understand the customers, too. This way, you can craft a clear message that will connect with your customers. How are you going to market a product properly if you don’t fully understand what it is? If you want to market your products in Asian countries, like Hong Kong or Taiwan, aside from implementing the kind of digital marketing HK audiences will be attracted to, you have to know how to craft the message that will draw them in.
No matter what language your audience speaks, if you understand your product and can create a clear message, there won’t be any barrier between you and your target customers.
2. You’re not inspired or excited by the idea
An idea has to stir and move you. It has to give you energy and you have to believe that it’s a worthwhile cause.
You have to ask yourself:
- Is the idea something you’re passionate about?
- Is it something that you care for and are willing to fight for?
- Does the business idea align with your values and principle?
- Are you going to be fighting for it through the toughest times?
Passion can influence people and make them believe in the product or service along with you. As an owner, it’s important that you are first inspired by the idea. If you’re not inspired by your business, then who else would be?
3. It’s not scalable
Your resources, operations and overall business model should be prepared for any changes in the future.
Ask yourself if the business is able to expand and grow at a consistent rate. Most importantly, assess if it has the ability to maintain operational processes steadily through its growth.
4. The business idea isn’t clear
A new idea or concept might confuse people; however, you should have a clear vision of what it is and where to take it. On the other hand, if you can’t explain the idea and what your business is about, scrap it.
No matter how new and revolutionary an idea is, it has to be clear. If you’re not clear about the product or services, along with its mission and vision, then how are you going to pitch it to investors? How are you going to explain to your target audience why they need it?
5. Nobody wants to invest
Having investors is crucial for the success of a business. Bootstrapping is great, however, having investors can also be a good thing. You have assistance and you’re not entering the fight alone. Not only do you have support, but it’s also an assurance that people, other than you, believe in your idea.
If your business idea isn’t interesting for an investor, it’s going to be difficult. However, before you drop an idea, make sure that you’re talking to the right people. Whether they’re family, friends, or industry experts. It’s also important to ask the opinion of potential customers, or your target market. Look for signs of sincere interest. If you see that your target customers are into what you’re cooking, then there’s no reason you should drop it just because you didn’t get an investor.
Building a stable business takes work and risks. An idea is worth pursuing if you believe that the world needs it and people will pay you for it. Do your research, talk to lots of people and consult with experts. If you find that an idea will likely fail, it’s better to drop it than waste time and resources. Only you can determine what the right move will be.