How to assess the feasibility of your business idea
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How many times have you thought “I have a great idea, but I hesitate to start working on it” ? In this article I will give you all the tools and explanations to determine whether your business idea has potential. It is important to carefully evaluate the feasibility of your idea before investing all your time, energy and money in it. Entrepreneurship is popular, but the number of companies that closed down has never been higher in the first half of 2022*. But don’t worry, you don’t have to be the new Steve Jobs or Elon Musk to be a successful entrepreneur. The simpler your idea is, the faster you can test whether it works!
Practical case
It is important to first determine when your initial idea is successful. As an example, I will take you through the story of Eline (28 years old) who wants to sell matcha tea in the Netherlands.
I have been drinking matcha for almost 10 years. In the beginning, my fellow students looked at me strangely, but over the years, more and more people around me wanted to try it. Since matcha was not yet widely available at the time, friends and family asked if I could buy it for them.
Eline noticed that there was a demand for it, but she didn’t have time to turn it into a business. She was busy with her education and didn’t know if the idea had potential. Years later, matcha became increasingly popular. More competitors entered the market and Eline had the “Shit, I wish I had done it back then” feeling. The question is, is Eline too late? Or can she still set up a successful webshop?
Business idea about matcha tea.
Definition of a viable business idea
Now back to the theory, because what is a viable business idea anyway? A viable business idea is an idea that is practical and feasible within the existing market conditions. It is based on a clear need in the market, has the potential to be profitable and can be realized with the available resources. A viable idea is realistic, scalable and has a competitive advantage over other players in the market.
When is your idea successful?
Although there are various theories and studies that can be used to determine whether Eline’s idea is feasible, it is important to first see for yourself when something is successful. Success is a relative concept and can be different for everyone. Below are some examples of when Eline is successful:
1. Establishing the company
For new entrepreneurs, this is a huge milestone. list of rwanda consumer email Setting up the company ensures that you have made the idea a reality. You show the outside world that you have taken the step.
2. Sell product(s)
The next logical step in the series of “successful” ideas is that you sell your products or services. This shows that there is a need for your product.
Making ends meet with your business
If you sell enough that you can quit your current exclusive interview with santa claus: on branding & international success job and focus entirely on entrepreneurship, then you can say that someone’s idea has succeeded.
4. Hiring staff
Are you selling so much that you can no longer alb directory do it alone? Then the next step is to build a team that can support you. For outsiders this is often a measurable success, in practice this can cause a lot of stress for you as an entrepreneur.
5. Achieve a sales/profit target
Every entrepreneur has different goals and expectations. One person thinks he or she has succeeded with a turnover of €5000, while another has a target of a million.
6. Selling your company
For many entrepreneurs this is the icing on the cake. If you have sold your company, you have proven that your idea is successful.
Eline’s goal: to make ends meet with the business