How to research the viability of a business idea is perhaps one of the most asked questions amongst aspiring entrepreneurs. It is important to note that one of the reasons many businesses fail in their first, second, or third year is because of a poorly carried out business idea research. The truth is, not all business ideas, no matter how remarkable they may seem, are meant to be. This is because sometimes there is just no market for your business ideas. While many entrepreneurs go ahead and launch their ideas without researching their viability, sometimes it turns out fine. Other times, not so much. You could burn financial and human resources only to discover your idea was no good, to begin with.
Carrying out research on the viability of your idea before you launch your company will not only save you money but also correctly position your business for its ideal market. This article will guide you step by step on how to research the viability of a business idea before you execute your business plans.
Carry Out a Survey
The best way to know if your idea is viable is to carry out a survey. Simply make a list of people you are sure will likely need your product and send them a questionnaire to fill. This could be people from your immediate circle such as close friends and family, or a total stranger from far and wide. While your idea may seem like a need to you, to others, it could simply be something that is nice to have.
Read About The Market
There is information about the market of every significant sector out there. While your idea may not be a primary industry, it could be a sub-sector. Reading reports, statistical data, and market predictions will give you a firm opinion about a particular industry’s needs and market size. You can find this information on sites like Research Guide, Guides.lib, Market Research, and sba.gov, and more.
Research And Understand Your Competitions Business
While competitions are threats, sometimes they can become a stepping stone. Researching your competition is one of the ways to check the viability of your business idea. If there are no competitions, it most likely means that there is no market for your products or services. If there are, then reverse is the case. By further researching your competition, you can also check out their products. Patronize their business or have a friend do so. This will give you an idea of how their company operates, how to best choose your pricing, and how you can better position yourself to do better.
Test Your Idea
When thinking about how to research the viability of a business idea, nothing beats actually testing your products in the market. While this experiment will cost you a few bucks, it will save you a whole lot more if your idea doesn’t work. You can develop prototypes and have your potential clients try them out for free.
Find a Mentor
Mentors are seasoned entrepreneurs with the knowledge and experience to help you grow your business. It is essential that you find mentors in related industries and not those in the same industry as yourself. They will be able to provide you with the pointers, information, and connections you need.