Humans are known as the most evolved species in the entire universe. Our minds are constantly running, thinking of creative solutions to solve our problems. Even our dreams, sometimes, turn out to be great ideas. Considering we’re living in an entrepreneurial era, people who stumble on a great idea often aim to convert it into a huge empire. Here are some examples of simple ideas that resulted in great businesses:
- Mark Zukerberg wanted to start a small app for social interaction between his friends called Facemash, which eventually became the biggest social networking site called Facebook
- Working at Wall Street, Michael Bloomberg soon realized that financial companies would pay big bucks for reliable business information. Bloomberg, with over $8 billion in annual revenue, is now one of the largest media and financial information companies
- With a fascination for the internet, Jack Ma launched a website where his connections could easily post products and customers could buy directly from them. Alibaba took off, and by 1999, raised $5 million from Goldman Sachs and $20 million from Softbank
- Varun Agarwal and his friend met in a cafe and wrote an idea on a tissue paper. That idea went on to become a million-dollar business called Alma Matter
This shows that even the smallest of ideas can become the biggest of companies. However, not every idea can be a business. Bill Gates once said, “I would be happy if I can download food from the internet, but that’s not possible. On a more serious note, we can’t build a business around every idea.” As the great Moghul said, there are a lot of ideas we stumble upon but are they business-ready?
In this article, we have covered certain tests you need to conduct before starting your journey of converting your idea into a million-dollar business.
Can You Execute It?
Not every product that is desirable is executable. For example, Bill Gates’s downloading food idea is undoubtedly great, but it’s practically impossible. Neither do we have the means or the software to create such a system. Hence, not every seemingly great-looking solution is executable. When the idea comes to you, the first thing you need to ask is whether you can create this product or not? If yes, first create a prototype and be extremely sure that solutions are useful. Then, you can consider moving to the next test.
Is There A Need For It?
Now that you know that your product works, you need to determine if there is a need for it, or not. The term ‘one size doesn’t fit all’ is most applicable when it comes to product. Every person is unique; they have their tastes, likes, and dislikes. They also face their share of problems and like the solutions to suit their requirements. For example, a tiny portable bottle that keeps water hot may be sufficient for your morning cup of coffee. But, it won’t be useful for a person who likes it without milk as the water just won’t be enough. Hence, you need to find out if there is a market potential or demand for your product. Keep in mind that most people don’t even know they need something until they are introduced to it.
Did you need Facebook to socialize, before Mark Zuckerberg convinced you that his way is better? The best way to determine the potential of your product is by asking people. Survey your friends, family, or even a random stranger walking down the road. After all, no matter how great your product is, if there is no demand, it won’t sell.
Can you Re-Create It?
Yes, you successfully created your product once. But, can you re-create the product over a million times, while maintaining the same level of quality? For example, you may have created an excellent dish for your consumption, or even for your extended family. But, can you recreate it every time before launching a restaurant where customers will come and expect the same quality every time? Moreover, you have to consider the cost involved in recreating the product multiple times. Scalability is a factor most people overlook, but it is essential. After all, what use are customers if you’re not able to sell anything.
Has It Already Done Before?
The current market is filled with various products, so much so that even big companies are struggling with cut-throat competition. If you’ve conceptualized a particular product, chances are someone else has done it too. So, it’s essential to determine if your product is already available on the market. This test isn’t a deal-breaker as such. Even though Uber was already a leading cab service, Ola Cabs was launched and is doing tremendously well. However, if your product is already available, you need to find something that your product does better. Find a USP that makes your product stand out from the one that already exists.
Is It Safe?
The internet and all the information available at just a touch have made consumers increasingly aware of what’s safe and unsafe. Moreover, due to this consumer awareness, the government too is taking various measures to ensure that a product is following all the necessary health precautions. If not, they are quick to ban such products. Hence, before launching your product, it’s important to conduct multiple testings and gain certificates that declare that your product is safe for use or consumption.
How Much Are People Willing To Pay For It?
The final test you need to consider is the affordability of the product. This largely depends on which category you want to position your product. Generally, there are three types of categories; must-have products, good-to-have products and luxury items. Food, clothing, etc., come under the good to have products. If you’re venturing in another industry, your product will either fall in the good-to-have or luxury product categories. The cost of your product is the main indicator that determines the category. So, find out how much customers are willing to pay for your product. Then, identify what will be the cost to create the product. If the cost to develop doesn’t justify the cost to make the product, the business will bound to be a failure.
No two businesses are the same. While no rule book determines right for wrong in the business sector, there are always sensible decisions you need to adapt to ensure your business is a success. Use these tests as a starting guide to make sure that your idea is something that can make you a millionaire!
Also Read – List of New Business Ideas0