Evaluating Your Business Idea

The current climate in business is innovative and entrepreneurial. Is it any wonder the startup industry is flourishing? Southeast Asia’s startup scene is also thriving. Since 2012, Southeast Asian startups have consistently obtained more and more financing.

If you’re reading this article, perhaps you’ve been thinking of building your own startup or small business. Building a business from zero is very exciting, and if your product or service fulfills market needs, you stand to become very successful. Of course, the process of building a business is full of sweat, tears, mind-numbing admin, and operational responsibilities. Building your own business is definitely rewarding, but you must be completely passionate about it.

What should you consider as you evaluate your business idea? Read on.

Table of Contents

What kind of product should you offer?

One of the most crucial aspects of building a new business is figuring out what you will offer to the market. Most people want to provide something unique and game-changing, but don’t worry too much when you discover another company that offers a similar product or service. There’s nothing new under the sun after all.

Focus on creating unique selling points and features that competitors don’t have. By offering more benefits, people would be more likely to get attracted to your product or service.

Is there enough demand from the market?

No matter how amazing your product or service, your offering will fail if there are no buyers. No demand means no profit.

How do you create enough demand for your product in the market?

Still related to the first point, your product or service needs to have your own touch to make it recognizable to the public. More than that, if you can fulfill an existing need and/or make consumer life more convenient by using your product, you will create demand.

Market research is a must

Determine to whom you will sell your product. Focusing on a clear target demographic will help you be more specific in creating your business and what it is selling.

Imagine holding a gun and being ready to pull the trigger but not knowing where to aim and shoot. That’s what happens when you don’t have a target demographic. You might end up throwing many ideas and launches, hoping one will stick. It’s a waste of time and resources.

Execution time!

Now is the time to take some real action!

Some people have the opposite problem: they are comfortable thinking and researching and drafting well-laid plans but become terrified when the time comes to execute their ideas. Anxiety is common and expected; it shows how much the business idea means to you. But if you are confident about your business idea, product concept, etc and have done quality research, why let fear stand in your way?

Execute your business plan one manageable step at a time. Any errors in the process can be improved along the way.