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What is a good business idea? The answer is this ...

Many people who want to start their own business say:
- “I have a really good business idea and if I can just get started, it could be a huge success”.

That's a wonderful spirit, I think. But how do you know if other people will be as excited by this idea as you are? What is a good business idea?

Here you'll get to know a little more about how you can analyze your business and see what's really important,  so that you can increase the chances of getting the success that you want.

Let’s begin.

How to see if your business idea will work:

1. Identify the value of what you sell – that's the value for those who want to buy.
Why would anyone want to buy what you want to sell – apart from that you want them to buy it?
• What are the ideal customers? Where are they?
• Who are your competitors? How do they market themselves? What advantage will you have over them? You will need something, an edge that penetrates through the noise. Does your idea have that capability? Will your customers see and appreciate it? What you need to do here is the hardest thing to do - to really take a step away from yourself and be critical. It's really hard to re-evaluate an idea when you have carried and nursed it for some time.

2. Is there a market for your idea?
Who are already selling your product today? How should you sell it?
Many people who have good ideas run into problems they never even thought of. They might have invented a small device that would fit perfectly in everyone's kitchen, but discovers that all stores buy things centrally and that they won't even listen to a salesperson who shows up from a small, new company. You need to know what the market looks like before you can sell anything. The terrible thing about this is that you can win big if you land a contract with a major chain, but you can also get the cold shoulder. My opinion regarding this is clear - try to create sales that are independent of others' discretion. It's better to sell a little less than being in the hands of large retailers.

3. What will the market look like in the future?
In the short term it may be great to catch up on trends. You may end up straight in the money trail with a product that everyone wants NOW. But what happens then? Is there a natural progression for your business when the trend dies down? This problem affects many service business owners who start selling something that is hot right now, but that people eventually get tired of after a while. Are you prepared for that?

4. How will you reach out to customers?
Sometimes it doesn't matter how great people would think that your new business idea is - you have to find ways to get the message across properly. I would like to be romantic and claim that a good product/service will always find buyers, but that would be a lie. The truth is that a mediocre product with good distribution channels has far greater chances.

5. And finally:
Don't trust me to 100% either. I have that disease that you get from experience and perhaps I've become a little too analytical. I know that energy and stamina has the ability to make almost anything work. If you really believe in your idea and if you're willing to work just as relentlessly hard to reach out to people, despite all the troubles – you have my blessing!

About the author

Stefan Ekberg has worked in marketing for small business for 20 years and has written around 30 books on how small business owners can market themselves with limited resources. . In 2012 Stefan was nominated as Entrepreneur of the Year in Stockholm.

230 000 prescribes to his free newsletter "The 5 minute marketer"
Every week some 230,000 prescribers gets his free newsletter about 5 minute marketing.

"The 5 minute marketer" - the book
You run a small business and you want to get ahead of the competition, but how can you give resources to marketing when you're short on time and the budget is tight? The solution is here! The 5-Minute Marketer is packed with 395 tried-and-tested ways to market your business in 5 minutes or less.