Browse the Internet, and you will definitely come across scores of business ideas. Each one appears more tempting than the other. Thus, it is must to know when a business idea is worth it. It would need some effort on your part.
If you want to open a business and have enough resources such as money and skills, continue to read. Here I will discuss how to know when a business idea is worth pursuing.
Why Should You Know?
It is important to know whether a business idea is worth pursuing several reasons. Globally, between 60 per cent and 90 per cent of businesses flounder and fail due to a variety of reasons. Shortage of money, low demand for a product or service, and no market research can cause a business to fail.
As a businessperson, it is important to make sure your business does not lose due to these reasons. So, here are some ways to know when a business idea is worth pursuing.
Uniqueness of Business
Most startups or business ventures are copycats of successful enterprises in other countries. You cannot be sure about being successful in India by copying a foreign example.
Businesses that serve Indians by understanding spending habits and other factors can succeed. A great example is the RedBus, which is a brainchild of four Indian entrepreneurs. RedBus became a runaway success due to its uniqueness.
You will know when a business idea is worth pursuing when it is unique. Yet it can meet the demands of several people, regardless of how much money they spend and where they stay.
Demand & Supply
Demand and supply in the local market is an excellent way to know when a business idea is worth pursuing. There are several great business ideas that require minimal investment. Yet, they are set to become great hits because there is ceaseless demand for the product or service.
In such instances, your business idea could be a copycat. Yet, existing suppliers cannot suffice market demands. In India, a food truck or snack stall or making herbal beauty and skincare products can be successful. This is because the demand is far greater than the supply.
Ability to Go Online
Any business idea that provides you with the ability to go online is worth pursuing. The reason is simple. Founder of Microsoft says: “If your business is not on the Internet, then your business will be out of business.”
According to Statista, some 329.1 Indians are projected to buy goods and services online by 2020. These statistics show that your business has to be online too. That is if you wish to get any respectable slice of the proverbial market pie.
A business idea is worth pursuing when it can go online, due to several reasons. An online business enables you to spread into newer markets rather quickly. A sizeable part of sales and profits occur online. Brand development becomes easier when your business has the ability to go online.
Another way to know when a business idea is worth pursuing is your own passion. Because your success will also depend upon your relentless passion. You may not have the necessary education or even expertise in some business. Here, your passion can compensate for these deficiencies.
There are several success stories where passion is the sole reason for success. Most such entrepreneurs began with little or negligible skills in that trade. Yet, they were passionate about the field that led to success.
Passion for business will also help you rise above the times when you feel the business can fail. Almost every successful entrepreneur or businessperson has been through this phase of self-doubt. Yet, if you are passionate about it, the business idea is worth pursuing.
Also, find whether you are able to turnaround your business swiftly. This means you can innovate your business, its operations and other functions rapidly. A business idea is worth pursuing only if it offers ease to innovate and turnaround quickly.
Worldwide, many companies ran into huge losses or failed because they could not a turnaround. So, their product and service offerings took a body blow from competitors. Regardless of whether a business is small or large, rapid turnarounds are necessary.
Delegation of Authority
A business idea is only worth pursuing when you can delegate authority over who runs it. Opening a business where delegating responsibilities is impossible is not even worth considering. You are not a supernatural being to run a business round the clock. Find a business where duties and responsibilities can be easily given to staff or a relative.
Delegating responsibilities has its own inherent benefits. You are able to develop a second line of command, should you need to leave for any reason. Also, you are developing the core capabilities vital to the success of your business. Highly centralized businesses, regardless of how small, usually exhibit retarded growth. Decentralized ones flourish faster.
There are several other things to know when a business idea is worth pursuing. Any business that can get excellent word-of-the-mouth publicity is worth pursuing. So are business ideas that help to improve people’s lives rather than focusing on profits.
Always follow your gut instinct to know whether a business you are considering is worth following. A lot of great businesses were born when ordinary people attempted to fill a much felt void. Unless you can do that, no business idea is worthy to pour your money and efforts into.
When opening a business, your investments are much more than money. Hence, investing every resource needs to be done with astuteness. These suggestions will help know whether any business idea is worth pursuing or not.