Everyday, I meet tons of people with great business ideas and plans on how they intend to bring change and innovation to the world. However, not many achieve this because they struggle with implementing their ideas and putting it into proper perspective. Besides coming up with a terrific business idea, it is crucial for that idea to be applicable and validated in the industry of interest before implementation. Here is a 5-step process on how to validate a great business idea:
Identify a Problem: Many renowned entrepreneurs will tell you that once you can identify a problem, you have discovered an opportunity. When generating a business idea, it is your duty to ensure that the business idea is a solution to a pressing need or problem. Avoid coming up with abstract ideas that do not have a ready target market that can benefit from it. As an entrepreneur, your drive for pursing a career path should be to create impact and value. Once you can identify an area where maximum value can be added to a certain target group, success in your venture is inevitable. Jobberman.com for example, has attempted to solve the unemployment gap in the country through the job search portal and this attempt has brought massive success to the organization.
Dissect the Opportunity: When brainstorming on a business idea and analyzing a potential opportunity, it can easily become overwhelming. Most problems have multiple approaches in tackling them and exploiting the hidden opportunities. As an entrepreneur, you must analyze the opportunity and understand how your product or service offering will become a solution and add value to your target market. It is also vital to have a focus in the role your business is playing. In dissecting a potential opportunity, a wise entrepreneur should be able to create a niche in an area that he or she is most competent in.
Liaise with the Target: There is no better way to validate a great business idea, than to interact with the people directly affected by the problem and the proposed solution you are offering. You must take ample time to study and observe the target group for your product or service offering. This will give clarity on the pressing needs, and direct communication with your target market will help you narrow your approach towards implementing your business idea.
Seek Expert Advice: It is not enough to have a brilliant business idea and a promising target market. It is the duty of a tactical business owner to seek professional advice when necessary, before implementing the business blueprint. If the cost for business consultation services is high, you can start by associating yourself with people who are in the same industry, accessible to you, and can provide free guidance on your business. This will help in reducing your market penetration risks and expanding your horizon in the segment of interest.
Create a Game Plan: After you have successfully followed the first four steps, you must put your business idea into perspective. You can start by creating a market penetration and marketing strategy, an operational procedure for the day-to-day running of the business, and by creating a detailed financial projection for the business.