Assuming that you have a perceived good business idea and you have (or you are thinking of creating) a product or service that you want to get out in the marketplace, how do you know that you are selling (or going to be selling) to the right market? How can you identify a good business idea that will make you millions within the shortest possible time?
Having the perfect or at least a very good answer to this question is important because the last thing you want to do is spend a lot of time, money and effort starting a business, taking your idea to the marketplace and then find out actually no one wants to buy your stuff. That becomes a problem; a very costly mistake that must be avoided right from the start or launch of your perceived god business idea.
This guide will give you a practical clue of what to look for or check in your business idea to see if it will work or not. You can use these tips whenever you want to enter into a marketplace.
The 5 key Indicators of a Good Business Idea That Will Make Millions
Below are 5 key pointers that can help you to identify a good business idea within a very short time hence saving you time, money and energy of wrong investments. Besides, these will help you to make millions within a very short time.
The indicators are:
- The availability of Pain or Problem
- A Sense of Urgency from the consumers
- Potential consumers’ Irrational Passion
- Volume of People’s Active Search For Solutions to a Problem
- Availability of and Level of Competition
(1) Check If There Is Pain or Problem?
To test if your business idea will work or not, what you should be looking for should be far from just rational needs or logical needs. Rather, what you should look for are emotional needs. If there is pain, in other words, you should be selling complete solutions to those pains not mere palliatives to cushion the pain for some time to resurface again. For example, you should look for problems where you can sell painkiller not vitamins; you should want to sell cure to a problem and not prevention strategies because ideally people are always more willing to pay for painkiller (real final solutions to a problem) than prevention of problems. This is a fact. When there’s a problem, your business idea should be able to solve the problem and people are more than willing to spend money to get the solution.
(2) Check If There Is a Sense of Urgency?
To identify a good business idea, it is important to check the level or availability of urgency for what you have to offer. If there is a sense of urgency for the solution, that is great because people who have the pains are need the solution (which you have) badly; they have to solve this problem. So, what you should check is if your business idea can meet the market’s sense of urgency for a solution or it will take decades to get the solution. Of course, someone else with a faster solution that lands on the scene would have taken the market before you and you lose out! So, your business idea must meet the market’s sense of urgency.
(3) Check If There Is irrational Passion
To explain this, take Football fans for example. Football fans are very passionate about Football that they buy a lot of Football related materials like tickets, jerseys, play football bets, etc. without much thinking. They do it for the passion. So, if you are selling to a market niche like this or any market in particular where passion sells, you are going to make a lot of money. That is, your perceived good business Idea will make you millions or something close to this.
On the contrary, if you propose to sell to a market that don’t have (a lot of) pain, don’t have an urgent need for solution to a problem, and don’t have passion for the product or service, chances are that you are going to have problem asking for money and also charging what you’re worth.
(4) Check If People Are Actively Looking For Solutions to a Problem
A very important thing that you should look for is if people are actively looking for solutions to a problem. There are many ways to find this out but I will use the commonest way. The commonest way is to use some online tools (i.e., Google Search results, Keywords Planner, Semrush, Ahrefs, etc.) to check and see what keywords people are actively searching for online maybe through a search engine like Google or YouTube.
So, you check if people are actively searching for solutions to a problem on the Internet and if they are then you check the volume of the searches and take a clue from that. The larger the search volume, the clearer it shows that many people are actively looking for the solutions to the problem. With this, you will know that there is a ready market for the solution you have/plan to offer. You could then sell your solution to them.
However, where your potential customers are not actively looking for solutions on the internet, then you’ll have challenges scaling the business versus if you go online and millions and millions of searches every month shows that people are searching for the solution to a particular problem.
(5) Check the Availability of and Level of Competition
You need to find if there is a lot of competition in the market for the solution which your proposed business idea is to provide. If there’s no competition, that may or may not be a good idea. This is because chances are whatever you’re thinking as the solution for the problem might have been introduced before and failed to make the money for the past solvers. Hence, it’s an indication that there may not be money in that market.
On the other hand, if you have too much competition then you have a problem trying to stand out. It will be difficult trying to cut through the noise unless you have a new technology, a new breakthrough or something that addresses the problem from a new angle. Unless there is a new dimension that you’re entering the marketplace you may not survive the heat.
So, these are the ways to identify a good business idea that will make you millions. I took the time to point out the things that you should look out for whenever you have a business idea which you want to enter into a marketplace with. You should spend a lot of time thinking about what market needs (not wants); the people you want to serve instead of spending all your time focusing on the product or the service that you want to sell. That should come secondary; the market always comes first. Don’t ever forget that!