Every minute of every day, hundreds (possibly thousands) of new business ideas are formed. Perhaps the reason is because a person experienced something negative and wants to make it easier—or perhaps an idea for a brand-new never-before-seen product just came to mind. Regardless of how or why the idea was formed, how would a person know if they should act on it? Although it’s not an exact science, there are certain ‘ingredients’ to what makes a good business idea.
Entrepreneur.com contributor Stephen Key is a longtime inventor, entrepreneur, author and speaker who is now helping entrepreneurs to bring their idea(s) to become a tangible, marketable product. Before putting endless amounts of time and money into your idea, it might be wise to consider the following before jumping in headfirst.
Determine the market size that would be purchasing your product—is it big enough to cover the costs associated with bringing your idea to life? Who will be buying your product? Where will they be buying it? How many similar products are on the market? If the market is very large and similar products do not exist, it may be challenging to see it through (though not necessarily impossible).
It is very important to investigate the technology needed to bring your idea to fruition. If the manufacturing technology does not exist and would require creation of new technology, the cost of that could outweigh the benefits of bringing your idea to market. If the technology does exist, you should contact manufacturers to determine the cost of creating your product and how it would be made.
When in this initial research phase, be sure to file a provisional patent to protect your idea—this is inexpensive and valid for up to one year without having to file a patent.
Not only is it important to research potential manufacturers, it’s important to know the exact cost to produce the product. If costs are high and your product would have to be set at a much higher price point as its competitors, you may want to see quotes from other manufacturers.
Why is your product better than what’s already out there? What would the consumer be getting out of buying/using it? Try to summarize the benefits in one sentence in an easy-to-understand context. If you’re having trouble clearly defining the product’s benefits, it may be time to go back to the drawing board and brainstorm some new ideas.
Have you had an idea, but wasn’t sure if it was good? Would using these metrics beforehand be helpful in business planning? Let us know how you generate strong business ideas and your elements to a ‘winning’ business idea!
To read more about the ‘ingredients’ of a strong business idea, please visit the following:
Thanks for reading, and until next time… stay WISE!