Last updated on January 20th, 2016 at 10:53 am.
Before I get to weighing on this, we need to ask different questions that will help us get to the answer. There are different factors that make success in business. The business idea is not even the core of it in my opinion. Why do I say that?
Every entrepreneur knows that the initial idea is just the foundation to the house. The foundation does not indicate the height of the house to be, nor does it indicate the method of construction that will be employed in building the house. The initial idea will help you identify a path that you think you want to take. This idea might be altered during implementation. Smart entrepreneurs know when it is time to change focus. The change may be a shift of the target market, a shift of your products and services, change of mode of your business operations or even a shift of the entire business focus.
What entails a good business idea?
First of all I must say I am quite ambivalent about the idea of the existence of a perfect business idea. That said, a good business idea may be coined by you. When you take up the path of entrepreneurship you need to know your ultimate goal and core motivation(s). Are you driven by the rewards of financial growth? Are you out to solve a problem that has bothered you and others? Are you just trying to make the society a better place? Whatever you are doing, and are unsure of the outcome but are ready to make assumptions, and take the bold step in implementation ,that is entrepreneurship.
Let us take a look at the fundamentals of a good business idea (not perfect business idea):
A good business idea must be purposed
An entrepreneur is a purposed individual. You do not act without cause. Your idea must be purposed too. You must know your dreams, objectives and direction with your business idea. Before you get to implementing, ask yourself where the idea will be headed, in parallel with your goals. Get to evaluate the idea and know what you expect to achieve. Know when the digression point will be, so that you don’t keep on going when the test of time has been taken and your idea will not have been validated. At the back of your mind know when you will have tried everything and what results you will be expecting. Purpose your business idea, and know when it will be a good time to repurpose your goals.
A good business idea needs a clear implementation path
This is a tough one since a startup is a newborn baby with an unknown future. Business is implementation, so if your idea is not inline with this thought you might as well start coining a new idea or get to brainstorming how you are going to implement it.
The business idea must be cost effective in the short and long run
If your business idea requires too much initial investment that you don’t know how to get, then pause the idea and get a new idea that will help fund that idea. Don’t quit altogether; all you need to do is come up with another idea that will help you raise the money you need. Who knows, this simpler and cheaper idea might end up being your empire. A business idea should be as cost effective as possible. Have enough finances to keep you going even in times when you are not making any money but still have business and personal expenditures/bills to cater for. Never run out of money or you will go out of business before you even build a business.
A good business idea must exhibit flexibility
A business startup is just a test to find the right business model that will work for you. Your idea must somehow prove to be flexible. A flexible idea is one that is able to target various people/ markets simply by a change in a few paradigms or without any change at all. How fast can you change your target market when things are not looking up for you? Can you repurpose the business without changing the business per se? Think ahead and see the various options that will be available within the same parameters of your current or the then business. An idea must be possible to alter as the need arises.
An idea must be executable
This is a no brainer. What value is an idea to you if it will take you forever to implement. Entrepreneurship is not a bed of roses and you don’t want to sleep on thorns every day. Be realistic. Lest I be misquoted, I must add, be as creative and as innovative as you can be. Think outside of all the boxes in the world and come up with the most creative idea that the world has ever heard of. Nevertheless, let it be realistic and executable.
The idea needs to be gainful
What gain do you see in the idea? An idea must be of some value to you and the society as well. You may define this value however you wish. You must let the idea show proof of value that will make it worthy of implementation and execution. Pursuit of business growth is derived from the value proof of the business idea.
So in conclusion, can we say that there is a perfect business idea? I will say no. We are all different and we all value different things when it comes to measure of growth in business.
Let me know what you think.