How to Predict if a New Business Idea is Any Good

Business is tough; that’s despite the fact it is now easier than ever to reach thousands of customers across the globe. The issue is in the level of competition; the easier it gets for you to reach a larger customer base, the easier it is for others.How to Predict if a New Business Idea is Any Good

The world may be shrinking but competitiveness is greater than ever.

If you want to be taken seriously you need to understand the next steps after forming a company. This is critical to showing your authenticity and determination; two factors which are often used to assess the viability of any business.

Consider this, Airbnb is worth over $30 billion but the initial idea in 2008 was rejected by many venture capitalists simply because it seemed so ridiculous.  This illustrates perfectly how it can be difficult to predict which new business is really any good.

Here are some simple steps to help you decide:

Mentor Interest

The greater the interest from mentors, the higher the likelihood of success; this appears to be true for any business in the research & development sector. However, mentor influence or confidence in other sectors seems to be irrelevant.

But there is a lesson to learn from this. Mentor confidence is built on knowledge of the industry with tried and tested procedures. If you’re entering an established industry then you need to consider the current business format within the industry and stick to this regime. It’s not only more likely to succeed it will be easier to get investors.

The Idea

A great idea can only be turned into a successful business if you have the customers behind you. There are two factors involved in this:

  1. Social Exposure

To build customer interest you need to have social media backing. The greater your current presence on social media the easier it will be for you to attract potential customers and build a successful business.

If you have no social presence when starting your business then the business is less likely to succeed.

  1. Competition

It is also essential to assess the competition. If you are entering an industry that is dominated by several big players and your idea can be easily copied or even improved on; then you’re likely to struggle to get your business off the ground.

Niche sectors can be better for new businesses to avoid excessive competition. However, you still need to have a good social profile or the customers won’t know you exist.

A business which offers a unique service or product only needs to get customer interest in order to be successful.

But, this doesn’t mean a massive social profile is the only relevant factor. The product itself must be worthwhile for customers to recommend the business to others.

Planning

A business that is likely to be successful is one that has spent the time researching the industry and built a business model and business plan. This will inspire investors. The moment an investor gets involved the chances of success go upwards.

An investor is more likely to be involved if the business has a viable plan; so the better the plan the more likely the business is to succeed.

Associating

It is also important to look at what associate links the new business has. In an extremely competitive marketplace a new business can easily be swamped and overlooked. However, if they are building affiliate links with business that can provide mutual support then they are more likely to succeed.

This also applies to marketing techniques; a professional market advisor will help any business to be discovered and ultimately be successful.

In short a calculated and planned approach is necessary, alongside a good idea and a good social profile. If the new business has all of these elements they are highly likely to succeed.

About Jesse Hughes

Jesse Hughes is a writer and blogger at KDA Incorporated.