Get your idea off the ground

Get your idea off the ground

A good idea for a business – and what constitutes a good idea for a new product or service, specifically – are two separate lines of reasoning that become blended into the same by many start-up entrepreneurs.

A good idea to start a business

When you identify an opportunity, the next steps are to couple it with relevant research and develop a business model and business plan.

If these suggest business viability and scalability, you have a good idea to start a business.

Whether you have a good idea for a new product or innovating an existing offering, you should only proceed after proving it.

Starting up has never been easier

Technology-enabled systems and processes allow me to register a client’s company in two days.

An online retail business can become operational in a week, from registering a business name for a sole trader to launch.

Before thinking starting up is too easy, I recommend you first prove your good idea.

But before thinking starting up is too easy, I recommend you first prove your good idea.

To get started, this series of questions applies to any business sector to help articulate the start-up process and develop understanding for what is a real and good idea.

A good idea for a new product

Whether you have a good idea for a new product or innovating an existing offering, you should only proceed after proving it.

This means gaining insights of customer demographics and behaviour and, importantly, understanding what is the customer’s pain-problem and what job is your customer trying to get done.

What makes a business idea fly?

The answer is in the questions.

  1. What pain-problem does your idea solve and how big is this customer pain?
  2. Can the real customer segment be clearly identified as the ‘target customer’?
  3. What would make these customers adopt this idea and how compelling is their need?
  4. Has your idea-prototype-assumption been tested with potential customers in real time?
  5. What barriers or fears will prevent the customer purchasing your product-service?
  6. How will customers identify the value offered and what price will they pay for it?
  7. Can you find 10 customers right now who will buy, and are there 10,000 more?
  8. Is the customer already using a similar product? If so, why should they change?
  9. What will it cost to make a minimum-feature product and how fast can it get to market?
  10. How will the business find, acquire and keep its customers and what will this cost?
  11. A business can’t sell a secret, so what is the marketing strategy and budget?
  12. What is the compelling value proposition and mantra that the customer needs to experience?
  13. What are the key activities required to consistently deliver this value proposition?
  14. How will the business make its money? What are the costs, margin and break-even analysis?
  15. What is the total establishment expenses budget? Where will this finance come from?
  16. How long will money last before sales are established sufficient to pay overheads?
  17. Will this business pay a proper wage, require specialised staff and make a realistic profit?
  18. Do you have business experience? What key skills are required to manage and scale up?
  19. Can all licence, permit, regulations and compliance requirements be satisfied?
  20. Why do this – to create a job, create an asset, make meaning, create local employment?

Rod Richards, Manager, Business Enterprise Centre Sunshine Coast