We all have many ideas: big, small, simple, elaborate … but only a few are encouraged to turn those ideas into real businesses that generate profits. Not all ideas are good, but probably many are potentially very good and just need to follow a few steps to assess the potential they have and how they can be developed. Therefore, we are going to leave you a few tips so that you can evaluate your ideas and you can create fruitfully.
1. What is the idea?
Define your idea very well and don’t skimp on details! It is time to take a pencil and a notebook and let the imagination fly. There are creative techniques that can help you develop your idea. Use them as many times as you consider necessary until you have the concept, the idea, well embodied in paper and pencil.
You can start from 0, with a totally innovative idea, or you can improve an idea that already exists in the market. Any option is good. Keep in mind that a priori, there are no good or bad ideas. There are ideas well or poorly developed. This implies that any idea is potentially the idea of your life, but look at these examples of simple ideas that have become millionaire businesses.
2. Does it cover any need? Which? Whose?
Keep in mind that every great idea that becomes a great business is because it has been able to meet some need. And keep in mind that there are many needs to be met. In some cases, we are aware of them and in others, we are not.
3. Do you have a market potentially interested in the product?
Once we know that our idea covers one or more unmet needs, we must assess whether there is enough market to bring the idea to reality. It is time to study the market. Since, if the only market it covers is mine, no matter how much effort I make to carry it out, the idea will never be profitable. It is time to study the potential of the idea in each market segment. There are countless segments in the market and we must find the segment that would potentially be interested in our idea turned into a product or service. Here are some market segmentation tips so you can evaluate which is the most suitable market segment for your idea.
4. What would you need to bring your idea to reality?
Detail everything you think is necessary to successfully develop your idea: materials, hours, staff, skills, workspace, … It is time to plan: we will start with our business plan.
The lack of planning is one of the main reasons why companies fail. Therefore, it is very important that you dedicate all the time in the world to plan your idea to turn it into a business. This way you can evaluate the viability of your idea.
5. How much will it cost to put your idea into practice?
It is time to make numbers and evaluate the profitability of your idea. Keep in mind that it is very important that you calculate in detail all the expenses and investments that you will need to make in order to get your idea going. But it is also very important that you evaluate how long it will take to recover those investments. Since, in the end, the most important thing is not what it has cost you to put it into practice, but if it will be easy to recover what you have invested in it and if it will bring you benefits.