Is your idea worth Pursuing?
As a speaker and Business Coach, I have the privilege of inspiring people to do more and become who they want to be in life. During my speaking engagements and work with individuals, I realised that there are two main questions that aspiring entrepreneurs tend to have. These are:
- I have a Business idea; what are the next steps to take?
- How do I know that my idea is going to work?
It is said that the richest place in the world is the graveyard and this is certainly true. Many people go through life with unfulfilled dreams and visions that never become a reality. There are many reason why people fail to live up to their full potential or go after their dreams. Some of these reasons are fear of the unknown, lack of support or mentorship or simply because they have NO IDEA how to go about it. With the emerging generation of entrepreneurs, it is obvious that now is the time for individuals to take that bold leap and determine to bring their dream to reality.
In this article, I’m going to tackle to issue of checking the viability of a Business idea. According to statistics, around 75% of new Businesses do not make it past the first year of trading while a massive9 0% of new Businesses do not make it past the first 5 years of trading. I personally believe that the main reasons that Businesses fail is down to the owner. I always say that “Businesses do not fail, people do”. As a Business owner or aspiring Business owner, you are the driving force behind your company and it’s your responsibility to ensure the success of the company.
It is definitely true that there is an element of risk involved in starting a new Business as there is no guarantee of success. There are many external factors that can affect the success of your Business over a period of time, these factors include introduction of new technologies, new laws or even introduction of competitors in your market. Your main aim is to assess the risks involved in the
Business which you want to go into.
When assessing the risk involved in starting a Business, there are three assessment that you need to The first risk assessment to carry out when assessing the viability of your idea is the market risk. With this assessment, you should be looking at the market that you are about to enter. Ask yourself
• Is there a need for my product / service
• Are people willing to pay for my product / service
Firstly, it’s obvious that the main purpose of a Business is to bring solution to a problem. The product
or service which you are about to introduce to the market must have a need. People must be
interested in what you want to sell. You must carry out adequate research to ensure that there is a
Secondly, you must also ensure that people are willing to pay for the product or service which you
are bringing to the market. Until you get paid for a product or service which you are offering, you
can’t refer to it as a Business, it’s a hobby!
People may be interested in what you have to offer, but you must also ensure that they are willing
to pay for it, otherwise, you have no viable Business.
With these two questions satisfied, you have completed the first risk assessment toward measuring
The second risk assessment involves looking at the existing competition that you are likely to
face with the new product or service that you are bringing to the market. There are two main
types of competitors that you are likely to face in your Business and these are direct and indirect
competitors. It’s important that you are aware of who are directly competing with you and those
who are indirectly competing with you. The concept of identifying your competitors are covered in
full details in my new book titled ‘Turn Your Passion Into Your Profession’ available on amazon and
In assessing your competitive risk, you need to examine the following questions:
• Who are your competitors?
• What differentiates you from existing products or services?
These are the questions that will assist you in assessing the viability of your idea in relation to your
competitors. You must identify those who are likely to compete with you and also clearly define your
unique selling point. There must be something that allows you to stand out in your market.
Assessing the capability risk in relation to your new Business refers to your own ability to build and
sustain a successful Business. The previous risk assessments that we have looked at are dealing
with external factors that may be out of your own control, but the capability risk assessment refers
to those factors that are within your control. To measure your capability to succeed in your new
Business, as yourself the following questions:
• Am I passionate about this Business?
• Do I have the right skills needed to make this Business a success?
• Do I have adequate knowledge about the industry and the product / service which I’m
• Do I have the right manpower needed to run this Business?
• Do I have the right level of experience in this industry?
• Do I have enough capital needed to start up this Business?
If you can confidently answer YES to these questions, then you have satisfied the capability risk
assessment. If you find yourself lacking in any of the questions, it may also mean that you need to
consider going into a partnership in order to satisfy the criteria.
You must remember that assessing these risks DOES NOT guarantee success in your new Business.
As I have previously mentioned, there is no guarantee, and contrary to certain beliefs, a Business
plan doesn’t guarantee your success either. It also allows you to assess the risk involved in your new
The concepts discussed in this article can be found in the newly released book titled ‘Turn Your Passion Into
Your Profession’ available on amazon and www.opyonas.com.