For aspiring business owners, pursuing your business idea and leaving your current job is quite a dilemma. Sometimes, we don’t know enough if our business ideas are worth chasing for. However for some people, they start by trying out the business idea first then decide to go full time and leave their jobs once they have proven that their business idea has shown great and promising returns. This write-up will give you tips on how to help you decide if your business idea is worth pursuing.
Check if your Business Model Can Be Protected
Is it possible to create patents or exclusive licenses so competitors will find it hard to copy your business model?
This does not mean that you stop here. There are also a lot of companies who found success with no patents or exclusive licenses. The Dollar Shave Club is a good example.
Do you anticipate a lot of regulations if you operate your business?
Regulation has its pros and cons. When you’re a customer, it will serve as your protection from organizations you will have a difficult time defending yourself against. But if you’re a business owner, regulation is expensive and has a lot of red tape.
For you to know if a business industry is strictly regulated, you have to talk to people who are already operating in the industry. You may also research local laws that govern the industry you want to explore.
If you don’t see any laws related to the business industry you are aiming to target then that business idea might be something to consider. This means less regulations and you have more flexibility on how to run your business.
Check if there were other business with the same idea before and see how it worked for them
In the business world, there are business ideas where you have no competitor and there are also business ideas where you have a lot of competitors. As a business owner, you should create a business venture where you can operate somewhere in the middle. In the middle means, not too many competitors. Setting up a business with no competitors might be a good idea at first but then you will realize that targeting an entirely new market can be more tedious as well because you still have to educate the market which means a bigger budget for marketing. Setting up a business with too many competitors is also not a good idea since you will not have a strong market.
Does your business venture require a huge capital to start?
When unsure, always avoid business ideas that require a huge up-front cost to start. A huge up-front cost would also mean a bigger risk. However, huge costs are not necessarily a bad thing because bigger costs would also mean bigger and faster gains.
Is your business idea something you are an expert or familiar with?
Establishing a business should be something that you are familiar with or something you are interested in. While it’s true that you also need to learn new skills when establishing a business, doing a business venture within your area of expertise won’t hurt.