According to CBInsights, 35% of startups fail due to lack of market demand.
Don’t make the mistake of spending all your time, money, and effort creating a product or service no one wants.
As your trusted digital marketing agency in Miami, we are going to share tips that will help you determine if your business idea will blossom into a successful venture.
Just because an idea is good doesn’t mean it’s going to be profitable. That’s why it’s crucial to be critical of your business ideas and ask for feedback from as many people as possible. Here are some tips from experts to help you determine if you have an effective business idea.
According to Dropbox co-founder Drew Houston, the most successful people he knows don’t just love what they do; they’re obsessed with solving real problems that matter to them.
As long as people have problems, entrepreneurs like you will never run out of business ideas. Why? Because the best business ideas solve real problems!
So, whenever you have a product idea in mind, the first thing you should ask yourself is if it solves a problem that many people are facing.
If nobody has the problem you’re trying to solve, no one is going to come to look for your product or service.
According to Lewis Fogel, there are four reasons why people buy a product or service:
Do your products or services belong under one of these categories? This is how you determine if your product idea has a great chance for success.
According to Dr. Rainer Meckes, businesses that get their pricing right will thrive. But those that get it wrong risk damaging their business permanently.
A great business idea is set at an optimal price. Excellent pricing isn't about being the cheapest, but about how your customers quantify the value your business delivers.
Once you’ve confirmed that you’re solving an actual problem in a scalable way, the next step is to determine the value of your business idea to your intended audience.
Your price point should be both attractive for your ideal customers and also produce the maximum possible profit for your small business.
The right pricing approach is crucial to staying competitive in today's market.
Here are some tips on how to set the right price point:
Market size is a major factor influencing how much your business idea is worth.
It tells you the number of potential buyers your business idea could possibly have within a given market, and the total income these sales may generate.
As a trusted digital marketing agency in Miami that has worked with countless small business owners, we suggest that you choose a business idea with enough potential. That said, your market doesn’t need to be massive.
According to Michelle Phan, founder and owner of multimillion-dollar cosmetics line EM Cosmetics, there’s a niche market for everything in this digital era. This presents a fantastic opportunity for you to focus and build a sustainable and viable business.
According to Michael Cullinan, director of Rapid Finance, if you’re passionate about your business and dedicated to making it work, then no matter how hard the process may be, you’re going to succeed.
When you start a business, it’s expected that running it will consume most of your time, money, and energy. So, it’s crucial that you build a business that stems from your passion.
When you’re passionate about your business idea, you can confidently explain what you do and why it’s important. This helps resolve any doubts you experience.
You’ll know that your business idea will succeed if it’s something that you truly care about, not just something you’ve started because it could be profitable.
According to Nancy A. Shenker, president of ONswitch LLC, entrepreneurs can sometimes lose objectivity because they’re so passionate about their business idea. This causes them to head straight to execution without taking the time to validate their idea.
Before you spend any money promoting your product or service, it’s essential that you test your business idea with strangers who are representative of your ideal customers – not just people you know who are too polite to tell you the truth.
You're ready to test a business idea on strangers if it:
As the best digital marketing agency in Miami, we suggest that you gather feedback and remain open to suggestions. This will give you insights on how to change or improve your product or service so that you can develop something your customers will actually love.
"The manufacturer who dedicates his advertising to building the most sharply defined personality for his brand will get the largest share of the market at the highest profit." — David Ogilvy
Aside from thinking about the problems your business idea will solve, you should also figure out how you’re going to market it to your intended customers.
Today, there are many ways you can promote your business effectively. Just make sure to do the groundwork first to ensure that you’re targeting the right people, sending the right message, and positioning your brand correctly.
According to Mark Suster, realism is important in startups.
It's normal to feel biased toward your own ideas, but romanticizing it will only stop you from truly identifying if your idea will be a big hit or not.
You need to understand that on paper, the details you provide might seem like your business idea will really work. But this doesn’t always translate to real life.
So, before you start implementing a business idea, ask yourself the following questions:
Once you have a profitable business idea, the next step is to find the right financing so you can start building the business of your dreams!
If you’re concerned about marketing and promotion, we can handle that.
Digital Resource is the best digital marketing agency in Miami. Our team of digital marketing experts will work with you to develop a custom marketing plan that will boost the visibility of your business online and put you ahead of the competition.
Contact us today to kickstart your business!