How to Know if Your Business Idea will be Profitable

Nowadays, a lot of inspiration can be drawn from just about everywhere. It is now easier to search for information through the internet. You can also get a lot of ideas from travelling, and it is a lot easier to travel now because of the growing seat sales and promo fares. You can really say, there is no shortage of ideas especially for a potential business venture.

An idea is one thing, but how would you know if the idea you came up while travelling strolling through the streets of Vietnam, or while enjoying a sumptuous food tour in Malaysia, is a good one? How would you know if it is something that you can profit from, and possibly make a living out of it?

Here are some guide to for you to figure out if your idea is worth pursuing.

Make a simple, lean business plan.

No need to make an elaborate business model for this. Make a simple, lean plan by answering the following questions.

  • Why are you doing this? Every business needs a sense of purpose. What separates you from other people who has built a similar model?
  • What problem are you solving? People purchase products or services because they need their problem solved. If their plumbing is damaged, they will need a plumber. If they are tired, they would go to a spa. In they are in need of a new watch, they go to a store and buy one. By answering this, you will also know who is your potential customers.
  • How are your potential customers solving their problem today? Do you have possible competitors who are already solving their problem? If so, how is your solution better?
  • Do you think you can make money? You don’t need to make deep financial forecast. Just make a rough calculations on how much you will need for operational expense and how much money you will probably earn. If your sales is more than your expenses, then you might be up to something.

Keep your business plan draft short, about a page only. 30 minutes should be enough to analyze your business idea.

Do research with your potential customers.

Try to validate your draft by interviewing a few potential customers. Do they actually have the problem you assumed they have? Were you accurate in your answer to how they are solving their problem? Pitch in your idea and see what they think.

In choosing people to interview, be as diverse as possible and interview as many as you can. They should have different backgrounds, family, job and other factors that will influence their decision in choosing which store to go to to solve their problem.

Show a sample or visual representation of your product or service to potential customers.

If you are selling a product, try and show your potential customers a sample. If you don’t have one, maybe you can try visuals to stimulate their imagination. If you are offering services, describe how your service would be better than the one they are currently using. Tell them what they can expect from your business.

Encourage your potential customers to critique your idea. Make it real and don’t be afraid to be criticize. With their opinions, you may be able to know if your business idea is good. Who knows, you might even get some ideas to improve yours.

Check for a suitable pricing range.

During your interview, make sure to ask how much they are paying for their current store. If you add some perks or if you have more to offer, are they willing to pay a little bit extra?

If you already have a price in mind, ask them if they are willing to pay that price for your product or service. Some people will say yes right away because they are in a hurry. You need to observe closely so you can filter out garbage data.

Find people who do not like your idea.

As you share your ideas to your potential customers or your family and friends, they might just agree with you to not hurt your feelings. Find people who thinks you should not be doing that business. Normally, this are people who are honest enough to tell you what they think.

When you talk to them, find out why they think your idea is not going to work. Why do they think it’s not going to work? What are the weak points in your ideas? Is there something they think you can do to improve them?

You don’t need to answer the weak points pointed out to you. Take notes and you can study on it later. Remember, some of their opinions might hurt you, but you need to have an open mind so you can get the best possible data. You will be investing your hard-earned money into it. It should be worth it.

Research on what you will need to start and how much it will cost.

At this stage, you should know if your idea can be turned into a profitable business or not. Once you have decided that it is base on your research, you will not need to know how much is it really going to cost you.

Build a more detailed financial projections base on the data you gathered. From the equipments you will need, to the space you are going to use to sell your product or service, down to the manpower cost and permits. After that, figure out how much you will need to operate your business on a monthly basis. Make a sales forecast on your possible sales. From these, you will be able to determine what would your cash flow look like and up to when you will subsidize operations until you will have a profit. Depending on the type, new business usually get their monthly expense from capitalization and not from sales. This is mainly because your business is just starting.

Start small.

Even if you have enough capital to go big right away, temper your excitement and start as small as possible. Although you made a lot of research, and gave it a lot of thought, you can’t really be sure if it will have as much sales as you projected.

The beauty of a smaller startup business is that you’ll be able to change direction faster and react to customers feedback quickly.

Most business owners want to go big right away because starting small might project an image that you are not ready. But this is necessary as you are planning for a long term success, not an overnight fame.

Be flexible.

When you start a business, make sure to leave your ego at home. Come to your business with an open mind, and be ready to listen to customer feedback. This might be your dream business, but they are the ones making your business alive. It is important to make them happy every time they visit so you will have a loyal customer.

Be flexible when it comes to suggestions. You don’t have to react right away at a customer’s opinion. Analyze each opinion and compare it to the others.

As you go along, you will realize if you are in the right market, or have the right strategy. If you don’t, change directions. This will enable you to find the best strategy for your business.

1,050 Comments

  1. Nice post. I learn something new and challenging on blogs I stumbleupon every day. It will always be interesting to read articles from other writers and practice a little something from other web sites.

  2. May I simply just say what a relief to discover a person that actually understands what they are talking about over the internet. You actually realize how to bring an issue to light and make it important. A lot more people must read this and understand this side of your story. I was surprised you’re not more popular because you surely possess the gift.

  3. An impressive share! I have just forwarded this onto a colleague who had been conducting a little homework on this. And he actually ordered me dinner simply because I discovered it for him… lol. So allow me to reword this…. Thanks for the meal!! But yeah, thanx for spending time to discuss this issue here on your internet site.

  4. An impressive share! I’ve just forwarded this onto a coworker who has been conducting a little homework on this. And he actually bought me dinner simply because I discovered it for him… lol. So allow me to reword this…. Thank YOU for the meal!! But yeah, thanks for spending some time to discuss this subject here on your website.

  5. After exploring a handful of the blog posts on your website, I seriously appreciate your way of blogging. I book-marked it to my bookmark site list and will be checking back in the near future. Please visit my web site too and let me know what you think.

  6. Howdy! I could have sworn I’ve been to your blog before but after going through a few of the articles I realized it’s new to me. Nonetheless, I’m definitely delighted I came across it and I’ll be bookmarking it and checking back frequently!

  7. Hi, I do believe this is an excellent site. I stumbledupon it 😉 I’m going to revisit yet again since I book marked it. Money and freedom is the best way to change, may you be rich and continue to guide others.

  8. Oh my goodness! Amazing article dude! Many thanks, However I am encountering troubles with your RSS. I don’t understand the reason why I am unable to subscribe to it. Is there anybody getting identical RSS issues? Anyone that knows the solution can you kindly respond? Thanx!

  9. гостиницы в гурзуфе крым цены 2021 отель партнер
    гостиница звездная путевка в крым цена проспект науки 17 санкт петербург
    геленджик отдых в сентябре лео палас черноморское геленджик туристическая 27

  10. Spot on with this write-up, I seriously feel this amazing site needs a great deal more attention. I’ll probably be back again to read through more, thanks for the information!

  11. Hello there, I do think your site might be having internet browser compatibility issues. Whenever I take a look at your site in Safari, it looks fine however, if opening in Internet Explorer, it’s got some overlapping issues. I merely wanted to give you a quick heads up! Apart from that, wonderful site!

  12. поездка в пятигорск ресторан на лодочной санаторий барвиха
    санаторно курортный комплекс подмосковье отдых в крыму с ребенком санаторий сеченова
    южный берег алушта арт ленд отель пансионат эллада

  13. гостиницы в острогожске воронежской области санаторий форос крым отзывы
    гостиница чехов донской лес турбаза санаторий урал лазаревское официальный сайт
    гостиница абажур санкт петербург отдых на азовском море недорого сочи радуга

  14. отель заповедник санкт петербург гостиницы в сургуте цены
    бассейн в пятигорске цена посещения для всех гостиница анфиса геленджик гостиница иваново цена
    тур путевки в сочи екатеринбург отель чехов гостиницы в чусовом пермский край

  15. самбия отель зеленоградск отдых в сочи санатории
    авито ессентуки продажа домов курорт на алтае белокуриха отдых в тверской области с животными
    профилакторий надежда гостиницы кириллов санаторий красноусольск башкирия отзывы

  16. купить путевку в санатории белоруссии с лечением гостиница европа партенит официальный сайт
    центросоюз кисловодск на карте отзывы о санатории алушта в крыму 2021 адлеркурорт сочи официальный сайт
    отель версаль краснодар официальный сайт крым база отдыха прибой цены 2021 мини отель александрия внуково

  17. Spot on with this write-up, I truly think this amazing site needs a lot more attention. I’ll probably be back again to see more, thanks for the advice!

  18. You’ve made some good points there. I checked on the net to find out more about the issue and found most individuals will go along with your views on this site.

  19. Hi, I do think this is an excellent site. I stumbledupon it 😉 I’m going to revisit yet again since i have book-marked it. Money and freedom is the best way to change, may you be rich and continue to help others.

  20. After looking into a number of the articles on your web site, I seriously like your technique of blogging. I bookmarked it to my bookmark site list and will be checking back in the near future. Please check out my website as well and tell me your opinion.

  21. Hi there! This blog post couldn’t be written any better! Reading through this article reminds me of my previous roommate! He constantly kept talking about this. I am going to forward this information to him. Pretty sure he’s going to have a very good read. Thank you for sharing!

  22. обухово свердловская область санаторий набережночелнинский профилакторий официальный сайт
    вега тольятти гостиница кругозор кисловодск утриш резиденция
    солнечный все включено подмосковье ейск приазовочка отель вэлна эко резорт в тарусе

  23. mercure роза хутор официальный сайт симферополь гостиницы цены
    поселок никита в крыму отдых в адлере 2016 все включено отель дворики
    таганская хостел пансионат фламинго крым гостиницы камень рыболов приморский край

  24. гостиницы в лодейном поле цены вардане санаторий
    отель морская звезда сочи таврия в евпатории цены на жилье в кисловодске
    отдых архыз селена анапа официальный пансионат челюскинцев гагра

  25. отели янтарный прибрежный квартал имеретинский
    отель dolphin сочи форт отель севастополь пансионаты в лазаревском рядом с морем
    отели нарьян мар талион отель санкт петербург гостиницы ломоносова ленинградской области

  26. санаторий судак министерства обороны рф официальный сайт клиника в железноводске официальный сайт
    краснодарский край поселок лермонтово сан лермонтова пятигорск официальный сайт источник официальный сайт
    отель de art 13 гостевой дом олива анапа горный воздух сочи 3

  27. гостиницы арсеньев мечетлино детский санаторий мать и дитя
    карагайский бор цены туры в ибицу из тюмени в сентябре отель брянск
    ателика угловое санаторий юбилейный на банном отель сильвия сукко

  28. гостевой дом карина санаторий лиски воронежская
    добрая сказка каменномостский отдых в белокурихе цены с лечением эко отель ая
    отель галерея москва рубин апарт отель казань гостиницы рязань

  29. гостиницы на море краснодарский край гостиница сиреневая балашиха
    отель бриз морское крым официальный сайт санаторий после операции на сердце вилла дель мар геленджик
    гремячинск горное озеро пицунда отели на берегу санатории урала с бассейном

  30. гостиницы керчь курорты башкортостана
    пансионат приморье геленджик цены на 2021 год экскурсии по ярославской области риксос сочи красная поляна официальный сайт
    гостиница 1001 ночь махачкала отель мэргэн батор санаторий ясные зори ярославль официальный сайт

  31. I’m extremely pleased to uncover this site. I need to to thank you for ones time for this particularly wonderful read!! I definitely loved every little bit of it and i also have you bookmarked to see new information on your web site.

  32. I was very happy to discover this page. I need to to thank you for your time for this wonderful read!! I definitely loved every part of it and I have you saved to fav to see new information in your web site.

  33. Spot on with this write-up, I absolutely believe that this web site needs a lot more attention. I’ll probably be back again to read through more, thanks for the information!

  34. Hello! I could have sworn I’ve visited this website before but after going through some of the articles I realized it’s new to me. Anyways, I’m certainly delighted I came across it and I’ll be book-marking it and checking back regularly!

  35. You are so cool! I do not suppose I’ve read through something like that before. So wonderful to discover somebody with genuine thoughts on this subject matter. Seriously.. thank you for starting this up. This site is one thing that is required on the internet, someone with a little originality.

  36. As I am looking at your writing, baccaratcommunity I regret being unable to do outdoor activities due to Corona 19, and I miss my old daily life. If you also miss the daily life of those days, would you please visit my site once? My site is a site where I post about photos and daily life when I was free.

  37. Oh my goodness! Awesome article dude! Many thanks, However I am going through difficulties with your RSS. I donít know the reason why I am unable to subscribe to it. Is there anyone else having the same RSS problems? Anyone that knows the answer will you kindly respond? Thanx!!