Every business idea needs to be tested. The idea might be innovative and unique or it could be a traditional one. Regardless of that, it needs to be tested. Unfortunately, there aren’t simulators that can test a business before it is launched so one has to consider the risks and rewards. If you have a business idea, then test it using the following methods.
- First, you should float the business idea casually among your family and friends. Do not put it across seriously or as if you are already determined to start the business. The best reactions, or the most honest reactions, are noted when people are caught unaware and their guards are down. Also, when there is little or nothing at stake. You need the honest feedback, what your family and friends truly feel about the idea. Should you put across your idea seriously, your family and friends may worry far too much about viability or what if you lose money and that would impair their ability to see promise in the idea or the potential in the venture. You need to know if they are excited about the idea and if they see the products or services or the business in general to be worthwhile. Your family and friends may not be the experts of the industry you want to venture in but you would deal with people like those around you. So the opinion of family and friends would actually reflect the kind of reception your business may get in the market, from the consumers.
- You need to study the cons. Every business is run for profit so there has to be more pros. But it is the cons that bring down a business. You could make more profit one month and less profit or no profit the subsequent month but you need to stay afloat and make substantial money over a period of three to six months or across four quarters of a year. Study the situations when that may not happen.
- Another effective way to test a business idea is to go around, talking to people in an area or relevant to a niche about the idea or proposition you have. For instance, if you wish to start a business like Courierpoint and say you wish to offer parcel delivery to Netherlands and other countries, find out how much consignment is usually sent from your area to these countries.
Likewise, how many get sent to your area from across the country and the world. This will give you a very lucid understanding of the sustainability and promise of your business idea.