If you would like to read this article, it is because you are definitely starting your own business …
Maybe you have already started and you are not getting the results you were hoping for. In this case, you are wondering if your idea is ultimately not the right one.
Are you in doubt about your original idea?
On the one hand, you need to know that this is not a problem in itself, and it is also a sign that you want to move towards something more relevant. In fact, it is crucial to rethink your business idea if you want to move towards profitability.
On the other hand, there is no harm in being “wrong” in your first business idea. The biggest startups have changed and modified their early ideas along the way.
This shows that the company knows how to update itself and listen to the needs of its audience.
So do not be afraid to question yourself, it can only be beneficial.
To help you know if your business idea is the right one, I see with all my experience in the field that there are 3 major questions that it is imperative to ask yourself.
These are, in my opinion, the three questions that will confirm that your idea is profitable.
The validation method in three questions
At its core, this method involves asking three important questions to determine if your business idea is likely to succeed. There are plenty of useful tutorials and information out there to validate business ideas, but this is a compact and streamlined way to test if your idea will work.
If you can say “yes” to all of them, it seems that you have an idea that should probably work just fine. If you can not say “yes” to all of them, it’s time to head back to the drawing board.
Question 1: Is there competition in my room?
While it is the opposite of what one might think intuitively, competition is crucial. Many entrepreneurs feel discouraged when they discover that they have competitors (more or less important) when they should be happy.
Competition In addition to the fact that it allows you to work better and get better, it has above all the advantage of validating your market.
What would McDonald’s be without Quick, and what would Adidas be without Nike? While we are not divine to answer, we can certainly say that they would not be relentless in creating such high-performance products.
Competition pushes you to always push your limits, as in a race where you have to be among the first. It’s the same with your business and a fortiori with your business idea.
Also, if you do not have competition, it is already a bad signal. It also means that nothing has been tested yet. So yes, you are the leader, but you also want to be the guinea pig … You do not want the clues that your competitor gives you in spite of himself and that show you the path to follow. No, in a market without competition you go almost blind and you only want yourself to guide you …
However, I would like to remind you that if you are truly the only one in your market, it does not mean that you can not succeed. That means it gets longer and harder.
Question 2: How do my competitors make money?
This question seems obvious, but one must also consider all the underlying questions. Often, new entrepreneurs will focus only on the apparent number of their competitors.
It’s actually very difficult to just trust what you see. For example, when you start a business, you tend to confuse revenue and company profits. However, always try to see the margins and the net profit that the company achieves.
Some companies show astonishing numbers, but end up with little benefit because they have to pay more intermediaries, or their customer acquisition process is long and expensive.
If you want to know if your business idea is good, take a closer look. Look at the real profit numbers. Pay particular attention to how the players in your market make money. It’s basic, believe me.
I see way too many entrepreneurs starting a business without really knowing what type of product will be the most profitable for them. They could save so much time by analyzing what type of product / service the audience and market are looking for.
See also customer comments, reviews and research they do. We are fortunate to have more recommendations and opinion tools. It is a goldmine for the entrepreneur who wants to start a business. By collecting customer reviews, you can already now have a good idea of what type of product you want to offer.
This is an essential question to ask yourself, because in addition to knowing that you are embarking on a sustainable business, you will be able to estimate your future cash flow.
Question 3: Can I add value?
Now we come to the third and final question, which concludes the 2 previous questions.
By this time, as you read this article, you know if there is a market for your idea. You know what sells best in your industry. It is the ultimate question of what you want to bring into this market that binds it all. You have found your competitors and they seem to have lasting business. What now? What you need to know now is the added value you will bring with your business.
You know, do not reinvent the wheel. It is often enough to differentiate yourself in a subtle but relevant way from your competitors.
What will set you apart from your competitors is what in the world of startups is called the “Unique Sales Proposition”. It’s your unique sales proposition that makes the difference.
And to attract customers to you rather than to your competitors, you need to show how your product is different and even better.
Now you’m probably wondering how you stand out and how you offer a better product to your customer?
Here are 3 main axes to differentiate you:
– Best prices (cheaper prices): While it’s not always easy to sell for less, especially if you bring a lot of value, it’s a good option to start with. I still have to add one important element: It is not because you are cheaper that you need to lower the quality. You will be more successful if you offer the same or better quality and sell for less. In the long run, it’s you who wins, you have to see.
- Be faster: You know, Amazon became famous mainly because it offered faster delivery than its competitors. No matter what you sell, whether it’s a service or a product, you can stand out by offering faster results (in delivery, in results, etc.).
- Better aesthetics: Although it seems trivial to you, having a more elaborate aesthetic than that of your competitors can have a big effect. Finally, aesthetics and design, that was Apple’s strong point … When I created my blog about entrepreneurship, I had dozens of competing pages and blogs with a relatively old-fashioned style. I wanted to stand out with a site with a minimalist and elegant design. The result? I immediately got good feedback from my readers and a higher conversion rate because my offers were well “returned”. In a competitive market, try to find the flaw in your market and exploit it to your advantage.
- A customer service present: This is a mistake that is specific to many companies and it is often the mistake that beginners can easily exploit. For example, an infopreneur on YouTube who has multiple subscribers typically does not or hardly respond to comments during his video. On the other hand, a person with few subscribers will initially respond to comments and questions. It is this proximity to the lead that can have a big impact on your sales or on the quality that your customers perceive as your business. Customer service is part of selling a product, and if you stand out in this, you have already improved your products over your competitors.
Conclusion: Your idea is profitable, do you need to get started?
Here are your 3 questions that should resonate in your head and shake up your business. Try to take the time to answer these questions calmly and try to be as objective as possible.
If you are about to start your business, you have everything in your hands to succeed. If you have already launched your business, you now know if you have the right business idea or if you need to change it.
It is actually relatively simple to have a business idea and can emerge at any time. Having a good idea is already something else and implementing a business idea so that it is profitable is something else again.
That said, make sure you’re not alone in climbing the mountain of success. Many entrepreneurs have searched for the right idea and adjusted the idea until they found the right one.
About the author
Ines Rubix (Digital Nomad 2.0): I have followed many entrepreneurs like you to finally find the ideal idea and strategy to make it a profitable business. I’m here too to help you define your idea, which might be a rough diamond at the moment, to turn it into a cut diamond that will make you money in the long run.
👉 Click here to learn more.