How to detect a good new business idea?

Posted on May 24, 2022 |

Hi Startupper, previously we wrote about SaaS marketplace development, but how to be sure that your idea is a good one? Probably no one can provide you with the right answer, isn’t it?

A lot goes into building a business, and it is difficult to identify whether some idea is worth investing money into. Quite often there is a lot at stake and decisions have to be made quickly and efficiently. Usually, when venturing out into the world of startups, it is highly important to think through all the steps that you are about to take, so you do not pour your money down the drain. If you are keen to identify if an idea is worthwhile, consider taking the approach of a lean startup. It is based on the idea of shortening the development cycle, by doing enough prior research to check the viability of a business. So here are the steps to take to see if a business idea is a good one.

Make passion your life’s work

Make sure to choose a product that you are passionate about. It takes a lot of patience and effort to make an idea work. So if you do not care about a certain item or goods that you are planning to produce, you are more likely to give up halfway. What is more, to make a product that can withstand market competition, you need to fully believe in your idea and be willing to work on it until perfection. Finally, if you feel strongly about your creation, you will have more strength to overcome any obstacles that come to your way or hiccups in the product development cycle.

Be ready to adapt

One of the key features of a good business idea is that it goes in time with the needs of the modern world. It is particularly easy to achieve success if there is a gap in the market and you are ready to fill it. However, sometimes you may make a product that already has lots of competition, then it is crucial to be adaptable, to make it better suited to customer needs. Your business acumen in this case will help you see the downsides of existing products and all you need to do in this case is to develop your idea to cover all the current flaws.

For instance, if you want to start a car rental for those under 25, you will need to do market research to learn what needs to be improved and build on that. You ought to make some research and ask people what makes them tick when they choose a rental car. Besides, more importantly, you want to know, what can deter a potential customer who is looking to rent a car, to avoid making potential mistakes.

Strive to be original

When you are choosing to start an enterprise, you need to make sure that the idea you have on your hands is a unique one. Firstly, it will ease the competition for your product. Secondly, you will have a separate niche in the market and can start to build up the loyalty of your customers. Nowadays consumers are pretty savvy and spoilt by a huge choice of products on the market, so if you want to conquer your own niche, you need to stand out from the crowd. You don’t necessarily need to go crazy on the marketing campaign, but on the contrary, you can make emphasize client care and the durability of your products.

Be smart when budgeting

Another important side of a business idea is the financial one. When you are embarking on a business, you ought to identify your financial rewards. Certainly, you are bound to need some investment in product development, however, you ought to calculate carefully to make sure that you are not overspending your budget. People can be drawn to invest a lot into product development, but not enough in market research. It might seem like an extra expense, especially if you are on a tight budget, but doing proper research can save you a fortune in the long run and can help you figure out if the project is worth your money and your time.

See the whole picture

People usually find it difficult to plan a long way, but if you do want your business to succeed you need to have a clear picture of where you want to be in 5 years and hopefully in 10 years. When you know what you are striving to achieve it is easier to set the goalposts for the project and to visualize its development. This is one of the golden rules in business because to pave the way to success, you need to know your destination. Moreover, it is even more satisfying to see that you were able to achieve those landmarks faster and to change the long-term aims in the process.

Be ready to change direction if necessary

The more you get into the nitty-gritty of product development, the more you learn about it. Sometimes, when you are hands-deep in the production, you might see that the end result is not exactly what you were anticipating and there is some altering to do. Don’t be afraid to act then, since the sooner you fix it, the cheaper it will be in the long run.

Moreover, sometimes you might see that some improvements are not essential but will actually make the product that much better, however, you might be reluctant to make those changes to avoid extending your budget. At those times, take an objective look at the project to see how it will play out in the long run, and be ready to scrap everything and go back to the drawing board, as the longer you postpone the decision, the more costly it can pan out to be.

Overall, there is a lot of excitement in the creation of a product. You might feel exhilarated at the beginning but persevere through the hardships and obstacles. To truly succeed, you ought to combine your belief in your idea with the hard work you are willing to put in.

Note, for direction changing you would need to work a lot on MVPs. And here are a list of MVP samples. And sure, keep in mind that your main is to make exit later on. In this article, we’ve described this.

You are launched is here to help you to polish out your business idea

If you’re looking to create the next big thing, we have the experience and skills you need to get ahead of the competition.

We’ve been working with startups, accelerators, and venture capital companies since 2014. If you want to support developing a SaaS marketplace, we’ll help you determine your key features, identify your brand positioning, and get you to market.