Today, every business school graduate brimming with vibrant ideas yearns to become an entrepreneur. Do you think that you have a great startup idea? You may be forced to think again considering the fact that entrepreneurs in their quest to make money through business, often go through a series of failures due to their inability to identify and work on an idea that might help them become successful. But the question is how to find out which idea will lead to success or failure. I can say from my personal experience that there are no simple predetermined criteria for evaluating a startup idea. However, there are indicators which can guide whether the idea might work or not. I am listing few ways to find out if your startup idea will be a success or a failure.
- Are you excited about the idea? It is advisable to ask others about your idea, but the best person who can tell you with absolute certainty whether your idea is worth pursuing or not is – you. You are the best judge of whether an idea is worth being implemented or not. Ask yourself: do you feel passionately about your idea? If you’re not passionate about what you’re doing, then why should anyone else be? Just drop this idea and think of another one.
- Have someone to tell if it will work: If someone tells you that your idea will not work, then you must ponder over it and find why it might not work. Always consult and be in touch with experts from the industry whom you trust and take their feedback. You can directly ask them about their views on your idea. Respect their opinion when they say your idea may not work as they might be able to foresee something you can’t considering their expertise in the field. It’s always better to know in advance about the workability of your idea rather than spending valuable time and money over it if it fails to work.
- No feedback/suggestions: While pursuing their ideas entrepreneurs seeks help from outsiders too that includes investors, experts or friends and family members. And if one fails to get any feedback or suggestions in this regard that might be a sign that his/her idea isn’t very good. Therefore, not getting any support also means that your idea might not work.
- Is your idea scalable? Anything which can be measured and monitored, will definitely yields results. If someone asks you how big is the business that you want to start and your answer restricts to be a small one, then you must rethink about your idea. While some businesses are bigger than others, the most successful businesses can start out relatively small and grow bigger over a period of time. Therefore, keep the result in mind before formulating your idea.
- Don’t go with overhyped ideas: Don’t ever think about the overhyped business ideas which have become a trend today. It is common to see people drawn towards overhyped business ideas and trying to replicate the same. Try to avoid this because since it is the current trend, it might not last longer to be a good startup idea and may not be successful. Try to work on an idea that will make you a leader, not a follower.
- Think about a novel idea: Focus on things which are ‘must have’ rather than the ‘good to have’. You must offer something that people actually need and not something that is good to have.
- Take public opinion: You can test your idea before pursuing the same to start a business. Take the help of the largest pool of public opinion which is the internet to determine if your idea is worth pursuing or not. This will help you know if the idea will work. And if you get a good feedback, you are all set to go, otherwise drop your idea.
- Market and size of the demand: The very important aspect of any business is its market and the demand for its products. If the size of the market that you are targeting or entering is too small, you might want to rethink about your idea for a startup. It is very difficult for a startup to survive with its niche product or service. It probably isn’t a good idea unless the niche market is substantial in size and test sales are tremendous.
- Purpose of your business: Define your business purpose and values first and study them properly. If you can’t explain to others what exactly your business idea is all about, it’s probably not an idea worth pursuing. Therefore, start finding answers to the purpose, values and main functions of your business, and what is unique about your idea.