Coming up with a business idea is easy. Anyone can do it. But coming up with a really good business idea that will definitely work? Now that’s a challenge. So how do you really know if it’s any good? Here are seven signs to look out for:
1. It’s a Lifesaver
Okay, it may not actually be pulling people (or puppies) from burning buildings. But a good business idea should make a task significantly easier or more pleasant for people. It should make people wonder why it wasn’t invented sooner. If you know that people need it to solve a specific problem, you’ve got gold.
2. No One’s Doing It
It sounds obvious, doesn’t it? If no one else has thought of your idea, you could have a good one. A lack of competition means you have the opportunity to fill a niche in the market.
Caveat entrepreneur: the fact that no one is doing it could also mean it’s a terrible idea. Look for other signs it’ll work, too.
3. People Get Excited About It
When you explain your idea to others, how do they react? If it’s like this, you’ve got a winner. If they stay calm, look confused or propose objections to it, sorry. You’ve got a bit more work to do.
One way to test if your business gets people excited is to crowdfund it on Kickstarter or a similar site. If you reach your funding goal, you know you already have a ton of people who are excited to buy in.
4. It Exists, But You Know How to Do It Better
Maybe someone else is already doing your idea, and they’re pretty successful—but they’re not doing the best job. If you can see where they’re failing and you have an idea for how you can do better, that’s a good sign.
5. It Passes the Grandma Test
Your idea may solve a complicated problem, but describing it shouldn’t be complicated, too. If you can explain it in a couple sentences, so clearly that even your grandma gets it, high five. If you can’t, you need to take some time to refine your idea.
6. It’s Hard to Copy
You’re the only one who can do this right, right? This is going to work because of your own special talents, ideas, understanding and connections? If you have an awesome idea but it’s easy to duplicate, what’s stopping people from copying you and marketing it better? Think about all the things your company is doing differently and lawyer up to protect your patents, copyright or designs.
And don’t let that scare you off! If your idea is so great that people will be lining up to try to copy you, you’re onto something big.
7. You’re Willing to Put your Heart Into It
Do you lie awake at night thinking about how awesome your idea is? Do you dream about its success? Do you legitimately enjoy working on it? If you really care about this business idea and you’re in it for the long-haul, you have a way higher chance of success.
So go for it! You are destined for success because you’ve taken the time to research and understand your idea. And this is just the beginning of everything.
Now that you’re ready to go, make sure you start off by snatching your domain name while you can!