The Covid-19 pandemic turned the world as we know it upside down, but rather than wait it out, many would-be entrepreneurs got to work finally turning those big ideas into business realities.
According to research from the Centre for Entrepreneurs, there were 44,500 more new businesses launched during the first few months of the pandemic than there were in those pre-pandemic years.
If you have a business idea you’re still sitting on, however, deciding whether it’s viable is the key to pursuing your new venture with confidence. Discover the steps you should take to figure out if your business idea is a good one.
Does it capitalise on your personal strengths?
Becoming an expert in your field is the key to business success. Be sure your business idea capitalises on your personal strengths, whether you’re entering a new industry that you are truly passionate about or playing on the skills you’ve already developed.
Do you know your market?
To develop your idea into a fully-fledged business, you’ll have to conduct market research. During these early stages, market research can be used to understand the viability of your business concept and the market demand for your proposed products or services.
Dig deeper into your market and its target audience. Ask yourself what problem your idea solves and whether customers will be willing to pay for the solution. Analyse the size of your market and determine specific personas for buyers, including their income range, employment rate and location. Findings across all these areas will not only determine if your business idea is wanted or needed by your target market, it’ll help you tailor your marketing strategy and brand messaging later down the line.
Market research is integral to developing your proof of concept and demand, especially if you’re a budding tech business. Your proof of concept will provide evidence that the business idea you have is valid and will work in a real-life environment.
Who are your competitors?
The saturation of your market is another key indicator that will help you determine the strength of your business idea. By conducting competitor analysis, you can review similar businesses and their performance. Look at their brands, marketing efforts, reputation, price and quality.
If you can pinpoint how their customers’ needs aren’t being met and how your idea can plug that gap, you may have just found yourself an audience.
What do peers, friends and mentors think?
There’s no need to keep your business idea under wraps. In fact, advice and support from peers, friends and mentors is invaluable at this stage.
Ask people, both inside and outside the industry, about their opinions on your business idea. Their insights could help you realise its feasibility and shape a model for better business. Putting your idea to a sample group of potential customers is another way to gain priceless insights from the people who matter and could even help you prepare for (and overcome) challenges that go hand-in-hand with your business model.
Got a business idea you’d like to get off the ground in 2022?
The team at TEDCO Business Support has helped thousands of businesses to grow, supported by the European Regional Development Fund (ERDF), so we’re here to support you as your team grows.
Get in touch with our team today to see how we can help you. Give us a call on 0191 516 61 02 or drop us an email at email@example.com.