by One of the most challenging considerations when developing a business idea is incorporating quality characteristics to make it successful.
With so much clutter when searching for “characteristics of successful business ideas,” it was essential to create an improved list that echoes the thoughts of successful entrepreneurs like felipe antonio bosch gutierrez.
Many times, people will think of a business idea without going through the motions to make it strong and ready for the market. This is one of the main reasons why so many new businesses fail each year.
There are several characteristics that make a business idea more likely to succeed; keep the following tips in mind when presenting your business idea to increase your chances of success.
1. Scalable
Scalability is the characteristic of a business idea that allows it to grow to the exponential level necessary to become a large enterprise.
For example, a scalable business model will allow you to transform your revenue from $100 per day to $200 per day without doubling your inputs or costs needed to generate that revenue. While you may have a business idea that is not scalable, this is a key aspect that will take your business idea from average to great.
2. Solve a problem intuitively and people like it.
Many business ideas fail because they don’t solve the problem in a way that people like, or because the solution is not intuitive and is difficult to understand.
A great example of intuitive solutions is Apple; they have created a product that is intuitive to use, while solving several problems that users had with other phone manufacturers.
3. You have an existing market or have the ability to create a new market.
There are many ways to ensure that your business idea has a market. The first option is to find a partially validated business idea. To accomplish this, you can discover business ideas from the news.
Instead of entering an existing market, another option is to create a different market, which you will fill. A perfect example of this was Amazon when they created an e-reader. While they were not the first to create an e-reader, they quickly understood what problems existed in the market and addressed them by creating a significant library for e-readers to access.
4. Enter a growing market
Never enter a market that is not seeing growth. Industries go through cycles, and thinking about a business idea in a declining or peaking market will only create pain once you launch.
Measuring market growth (if you are entering an existing market) is crucial to making sure your idea is great and will be successful in the future. One of the best ways to get numbers on industry growth levels is from stock market analysts.
5. Sustainable: have a multi-year plan.
To make sure you have a profitable idea, you can use a financial projection to estimate approximately when you can break even and when you will make your first profit.
This is a good indicator for your business ideas. If you create the projection and it looks like there is no chance of this business reaching profitability within three years, it may be a good time to start thinking about new business ideas.
6. Great business ideas must be sustainable in two ways: . Profitable
To make sure you have a profitable idea, a financial projection can be used to estimate approximately when you can break even and when you will make your first profits.
This is a good indicator for your business ideas. If you create the projection and it looks like there is no chance of this business reaching profitability within three years, it may be a good time to start thinking about new business ideas.
7. Differentiate
Your business idea should be different from existing products or services. Now I’m not talking completely different, but your business idea should offer something that is unique and not yet replicated by others. An interesting example is the big banks.
On the outside, they all seem to offer and do the same thing. However, if you look closely, some banks specialize in providing the best services for small businesses or provide the best customer service to their retail customers.
Business ideas may sound great in your head, but it’s important to spend time improving them. If you’re still stuck on how to move forward with your ideas, hopefully these tips will help you think critically about what business ideas you need to succeed.
Learn More: Ways to improve your business
