Everyone has their own little method for coming up with new ideas for the business. But, not all ideas are sustainable and profitable for business. For example, even though your idea is good and unique, but it might not be profitable based on the market research, therefore preventing you from generating a profit.
According to an article title “Got a Business Idea? Here’s How to See If It’s Sustainable” by Jayson Demers, Founder and CEO, AudienceBloom, posted on Entrepreneur website listed some questions to assist you on whether your idea is sustainable as a groundwork for a real business.
The questions are as follows:
- Are you solving a common problem?
Obviously the first question is the easy one, whether the idea solves a problem and not launches something that is not needed. Demers says the second key is that the problem you’re solving is widespread.
- Are people going to pay for your solution?
Demers says imagine you didn’t come up with the idea, but rather someone was coming to you with it. Would you be inclined to pay that person for the product or service? How much would you inclined to pay? These questions let you know whether the idea has the potential to make money.
- Is your idea scalable?
Demers says making money is only the first step of the process. To succeed as a business, your idea needs to have room to grow. Can your idea gradually expand into other areas to make more money?
- Has someone else beaten you to it?
To answer this question, one can do a quick Google search. If there are other companies who rivals your idea nearly or better, your idea probably isn’t sustainable.
- Could anyone do this?
If the idea is the first to be introduced to the World, how easy would it be for someone else to replicate?
- Can it last for more than a year?
This is the critical question regarding sustainability of an idea. Demers says that the business idea that takes advantage of a fleeting interest do not succeed than the one that solves a long-term problem with long-term solution.
If your idea answers all these question assertively, with back up research then you have a high chance of opening up a successful business.
Farishta Abdullahi is an intern for Women’s Entrepreneurship Center at The University of Scranton Small Business Development Center. She is focused on assisting lower income women, those in transition or those trying to make a better life for themselves and their families. “StartUP” is a 4-week certificate program designed for women with lower incomes, offering support and guidance in determining if entrepreneurship is an option for them presented by The University of Scranton Women’s Entrepreneurship Center (WEC), sponsored by NBT Bank.