It’s common knowledge that most start-ups are doomed to fail, and as entrepreneurs, we endeavour to be one of the few succeeding. While cash flow, marketing and premature growth are all common reasons why start-ups fail, the idea itself can often be fraught with disaster from the beginning. In this article, we help you ask the tough start-up questions, sharing with you what to consider so you can accurately determine if your idea is a viable one.
Are you solving a pain point with your customer?
Start-up ideas either fall into the category of must-have or must-want and determining the difference between the two will save you a lot of time and money. The must-have idea is the product or service that customers are dying for, and in some cases, literally. Must-have products and services change the customer’s life, solving a problem and providing solutions. Must have start-ups tend to more successful, as the customer needs less convincing of the ideas’ usefulness. While must-want ideas can be popular in certain circumstances, their success is often less guaranteed.
Are you appealing to a broad market?
Once again, we wrestle with two types of products and services start-ups can fall into; niche and broad. Niche start-ups can service small sections of customers, with limited needs and wants, as well as restricted servicing areas and growth potential. Broad-based ideas have more potential and are often more viable because of the extreme potential to reach international markets. While every idea doesn’t have to be broad, it’s essential to assess how scalable the business can be, and whether you are sinking your investment into a local-only idea. Most entrepreneurs tend to venture towards larger-scale opportunities, however, the choice needs to fit your desired outcome.
Are you opting for a wild idea?
In overcrowded markets, every entrepreneur needs to stand out, and it’s tempting to explore the most far-fetched ideas to fit this need. However, the issue with the far-fetched ideas is their viability, as it can be impossible to recognise when an idea crosses the line between wild and genius. If the idea lays in the genius side, more than likely, there will be other entrepreneurs like yourself developing the concept elsewhere. Though competition is healthy for every brand to contend with, it actually validates your idea, as others are also willing to take the risk.
Are you ahead of the game, or behind it?
When we think about technology and trends, the last thing we want as an entrepreneur is to launch a product or service that will be instantly superseded, or out of date before launch. Depending on your industry, you may run the risk of larger companies developing products or services that make yours obsolete quickly. Alternatively, your idea may be ahead its time, with infrastructure and technology unable to keep up with it.
Why not get in touch with the Propellor Advisory team today to find out more about how we can help you succeed?