HOW TO GENERATE AND VALIDATE A BUSINESS IDEA
Author: Victoria Haihambo
Have you ever felt stuck while trying to generating a Business idea and validating your idea? Then this is the right article for you. In this article we will show you a few steps to get you started.
1. Approach to starting a business Idea
When Generating a business idea you need to start by considering the following approaches
a) Providing a solution
You have to ask yourself are you providing a solution to an existing problem in the society or are you solving a problem that most people overlook. Using customer pain-point is a great way to generate a business idea as the people you are trying to bring a solution for automatically become part of your target market.
b) Hobby or a passion
Looking at what you love doing and really good at it, is also another approach one can use to generate your business. Choosing your hobby as your business will motivate you and make you productive in your business.
c) Existing Business idea
One can make use of the existing business idea to generate their idea. In using this approach it is important to ensure that you should believe that you can do it better than the existing businesses who are in the same business field.
This will not only make your business innovative but it will give you a competitive edge over other businesses. You need to ask yourself how you can add value to what other business are currently doing.
d) Do Research
There are many types of business ideas on the internet which one can explore. You need to do research and see which business idea is not available in your community and determine if it is solving a customer pain-point in that community. Additionally, you have to ensure that it is practically feasible to implement that idea in your community.
2. Idea Validation
Now that you have generated your business idea you need to consider if your ideas is feasible to be implemented and there are various way one can validate a business idea.
a) Market Validation
Determine if there is a market for the type of idea you would like to implement before launching the business. This can be done by identifying your target market and finding out from them if they will be interested in what you will be offering.
You can conduct a market validation survey by interviewing your customer or by creating an online market survey.
Giving out free sample of your products for testing or free services and receiving feedback is also another way of validating your business idea. This will give customer an opportunity to taste or experience your products or services and provide you with an opportunity of turning them prospects into paying customers if they like your products or services.
b) Financial Feasibility of the Business idea
You need to find out all the costs involve for starting that specific business and compile a projected profit and loss account to give you rough estimate of financial outcome for the business over a certain period.
Financial Feasibility is very important element as it help you to determine the profitability of the business idea before you venture into it.
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