Convert your business ideas into reality

Business idea testOften we see people claiming that they are always full of business ideas. But, if you dare to ask, how many of those ideas are actually executed by them, you'll soon see the pitch changing to a number of excuses like not getting enough time due to an existing venture or a demanding job etc.

As entrepreneurs or wannabe entrepreneurs we need to understand that the best way to treat a business idea is not to brag about it. Instead, the idea should be tested on real world parameters to see its true business potential. Let's see some simple analytical tests to do such a validation. You can carry out these tests with a little research on Internet over a weekend.

Start with the first test below and keep moving to the next one, as long as your idea passes a test. If it fails any test, try to tweak it to make it pass that test. But once you tweak your idea, you would need to start from the first test again.

1. Objectivity Test

Write the real world problem that your idea intends to solve. You'll see that many a times your idea will fail even this first test because the mental conception of an idea might look good, but, it would not map to a real world problem. Normally it happens in cases when you came across an interesting technology or concept and the idea clicked to you. If you first saw a problem and then thought of an idea to solve it, you've more chances of passing this test.

2. Market Test

Check if there is a market with existing solutions Market testfor the problem you want to solve. If yes, do you have a better solution, if a yes again, try to find out the reasons, why your solution is not yet implemented by existing players. Many a times these reasons would tell you, that there is some potential flaw in your idea. And if there's no market for your idea yet, go back to the first test above to double check if you are solving a real problem/need faced by a significant number of people. There are very less chances that a significant problem is not yet seen by anyone else; or your idea is a truly innovative one. If it is the latter case, move on.

3. Operational Test

Make an end to end "theoretical" operational model for your idea, from development to delivery to the final customer. Do you see any feasibility issues in converting this model into a reality? The issues could arise from a wide range of areas like existing technologies, the socio-economic context, the cultural context, and most importantly the operational model should align with your personal interests, if it does not, you will not pursue it in most certainty.

4. Financial Test

Can you think of a valid revenue model for your idea; would you soon start getting some revenue or would it only be realized at a later stage; what about the investment requirements for your idea, are they within practical limits. Can you arrange the investment required from your own resources or can you at least take your idea with your own means to a level where it gets funded.

If your idea does not come clean on each of these tests, just drop it and move on to find a new one. If it passes all of these tests, take it to the next level, i.e. the real customer validation ( Read about the importance of customer validation: Customer Feedback: How not to kill your startup in infancy ).

So, what's your view on treating a business idea, share with us in a comment below.

Comments:

Nishant Aggarwal's picture
Very nicely done!! Thanks for the useful insight!
roop25's picture
/it's secret. How can i tell u
Gaurav Vimal's picture
how do i knw. someone uses my idea or knw.. till now i dnt think neone uses this idea before.. and who uses its not like as it shoud be.
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