So you have a fantastic new business idea that will change the world. It seems like a certainty in your mind. You are ready to go, and put in everything possible to give it your best shot. However, results come in and you are not making half as much as you thought you would. So where did it all go wrong?
Business these days takes a lot more than just coming up with an idea. A lot of times, entrepreneurs get ideas for products or services that they feel will completely revolutionize the market. The truth is, quite often, there are similar products in the market that are already doing what your product promises to do, and probably even does it better. Another terrifying truth is that, the idea may have been tried and failed for a large number of reasons that you failed to put into consideration.
When going into business, it is very important to observe market trends before investing heavily in your new business idea. There may be some hidden flaws in your idea that you may have ignored because of your enthusiasm over your idea. It is very important to conduct the necessary feasibility studies and competitive analysis in order to ensure that your investment will be a viable one. There are some clear signs that your business idea is going to be a complete fail. I will be taking you through some of the telling signs that you should not invest in that new idea.
Your Motive
The biggest sign your new business idea is a complete fail is when you can’t stop analyzing how much you stand to make. This means that you are most likely only in it for the money. Now don’t get me wrong; money is a very good motive for doing business. In fact, it can be a very good reason for going into business. However, the dangerous aspect of money being the motive behind an idea is that money has a way of clouding your mind and judgment. The thought of money makes it very easy to overlook obvious flaws in a plan. When you have a new business idea, you must take time out to think and question your motive for going into business. When you have effectively done this, it becomes a little bit safer to go into business.
Seeming Like A Goldmine
There is nothing wrong with your plan being a foolproof goldmine. Sometimes, people’s ideas are literally goldmines waiting to be exploited. However, if something seems to good to be true, then it probably is. You should take some time out to properly evaluate the business idea and check out why it seems to be such a certainty. You can also employ the help of a professional to conduct a feasibility study to ensure that your investment is not going down the drain. It can be very heartbreaking to invest heavily in a business idea and see the flaws of the plan unravel before your very eyes.
Nobody Is Doing It:
Think about it! If nobody is doing it, then there must be something wrong with the idea. Of course, there are new ideas every day that no one has thought about, but you must take extra care to figure out why nobody is doing it. It is important to conduct a proper competitive analysis to figure out what your possible competition is, and if need be, why you do not have any competitors. This is usually the quickest way to identify whether or not a plan is going to be a fail. If you do not seem to have any competitors, there just may be something wrong with the idea.
Doubt
The greatest minds doubt themselves. However, if you just can’t shake the feeling of doubt surrounding you, it just may be a sign that your new business idea is a fail. It is good to follow your gut when doing business (after properly calculating the possibilities of failure). If despite all the numbers are showing you, there is still the unshakable feeling that it will fail, maybe you should take some time out to re-evaluate.
You Don’t Really Know The Basics
The richest entrepreneurs around the globe have one thing in common; they don’t ever go into business without knowing the rudimentary aspects of the job. Don’t ever put your finances into an idea you don’t really understand. If you do this, you will begin to see the flaws of the business unravel with every step of your idea.
Hmmns And Aaahs
When you are speaking about your groundbreaking idea, listen out for the ‘hmmmns’ and ‘aaahhs’. Often times, friends and family are too concerned about our emotions to actually tell us the truth about business. Listen closely for people’s opinions. If they don’t seem to have any opinions, good or bad, then maybe you should rethink the idea.
Originally Posted on Linkedin
Jess Wolodkowicz
Exhibition Planner | Account Manager
Phone: +61 (02) 8093 3806
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