What is a Business idea really worth?
You’re having an enjoyable dinner with friends, when some one at the table mentions an issue they just had with product x – and suddenly it hits you – the solution to the problem and the idea of the century!
You quickly explain your idea to the people at the table who all comment on what a great idea it is, how valuable they think your idea is, and how they would all use it.
Suddenly you’re convinced that you just came up with a killer business idea.
Over the last 20 years, I’ve had hundreds of ideas pitched at me, some, I just can’t see working at all, but many of them do have the potential to be commercially viable. Unfortunatly that alone is not enough. Just because a person has a great business idea doesn’t in any way, shape or form, mean that they have a viable business.
And here’s why…
Most people with a great idea, get caught up in the development / creation of the product or service that forms the basis of their business idea.
Believing that that is the most important aspect of their future success.
The truth is, the actualisation of the idea is often the easiest part.
In other words, turning the idea into a physical product or service is not the real challenge.
The real challenge, and where most ideas fall over, is the ability to commercialise it.
You see, once they’ve realised the product or service, they then have to create a whole business around it. They need to get out and market it, sell it, deliver it, support it and do all the other things it takes to actually run a business.
This is the part where most people fail – having a great idea in itself is worth NOTHING, unless you also have the ability to commercialise it.
Before you spend weeks or months developing your product or service, try these few tests to see if you’re able to commercialise your idea:
- Put together a mockup of your product or write up an brochure on your services.
- Go out and pitch it to potential customers
- Try and get some form of future commitment from them
This little exercise alone will give you an indication of whether you have the ability to commercialise it.
For example, if you find that you can’t get your idea in front of potential customers now, how do you expect to get in front of them once you have your product or service ready?
If your potential customers don’t show any interest now, why would they show interest later?
You could save yourself a whole world of grief, stress and money by performing these simple tests right at the start of your new business venture.