Many people think that because they have a great idea or a new product or service to promote, that all they need to do is market or advertise and others will buy what they are selling.
This couldn’t be further from the truth. People do not buy products and services because you want them to. They buy because the experience of buying satisfies a want or need that they have. Most buying decisions are based on emotion. Moving towards pleasure or away from pain. This is true in business and in personal relationships.
In CMC’s experience and in our business mentoring sessions we have found that there are 5 key questions that you need to ask to assess whether you really do have a great business idea worth pursuing.
5 Key Questions to Ask Yourself
- Is your product or service unique?
- What is the barrier to entry?
- Do you have any form?
- Do you need an App?
- How far away is the money pipe?
Question No. 1 is about ensuring that what you have to offer is truly unique. If you have an innovative concept and a well-documented business strategy and marketing plan you are off to a good start. Research the internet and doing a search for your concept will illuminate this point.
Question No. 2 Assume that you get your business up and running – what do you have that stops everyone else copying it and marginalising you? First mover advantage is not a guarantee of success.
Question No. 3 is about whether you are recognised as an expert or leader in your chosen market. If this is your first foray into a new market area, your learning curve may be time consuming and costly. The simple way to avoid this question is to team up with someone who does have form.
Question No. 4 is always an interesting topic for discussion as most people think they need an App for their business to be successful. If you need an App or technology “stack” to market your product or service, then you need to do very careful research to be sure it hasn’t been done before. There are innumerable Apps in the market today and the volume is increasing daily. This is where many businesses fail. New business owners in today’s fast-moving technology world, think that an App automatically becomes the “gate to paradise”.
The reality is that building an App is a great idea if it supports part of your overall business strategy but not if it is the Strategy.
If your answer to this question is Yes, then you may need to go back to Question No. 1 to ensure that what you are offering is truly unique.
Question No. 5 is the reason you are in business. If there is no immediately visible revenue and more importantly no profit (aka money pipe), you will not be in business for long. Educating the market with your concept rarely creates wealth unless customers have been waiting to spend money on your business. This is rarely the case.
Note that if you can’t realistically see the money pipe, the answers to the other 4 questions do not need further contemplation.