99% of ideas never become business.
And only 80% of businesses reach the third year of life.
Therefore, is it important to analyze your business idea on the internet?
I am dedicated to analyzing business ideas on the Internet of first-time online entrepreneurs and I would like to explain the 5 main risks of death of an online business idea.
THE IMPORTANCE OF THE IDEA
Ideas there are many, I would say infinite, sell chimneys online, sell any physical product, or natural or handmade products, including translation services, advice, or sell products of others through affiliation or dropshipping, or sell advertising.
In reality, the ideas that people have, the ideas of entrepreneurs, your ideas and my own ideas lack value.
So if ideas are not important and lack value, why analyze them?
Very well, dear reader, we came to the conclusion that I wanted to take you:
The analysis process is what really starts to give value to the idea. When you analyze an idea, with a method that has a certain meaning, you are shaping your idea, you turn it into a project.
However, the value that a project can achieve is very small compared to the value attributed to some startups in search of investment or already consolidated businesses. When you execute your project is when you are really adding value. The value is in the execution.
But what differentiates good from bad ideas? Which of them convert into projects?
I personally like to pass my ideas and those of my readers and clients for 5 filters that I explain below.
Continue reading: How to create an online store in 10 steps
THE 5 RISKS OF DEATH OF YOUR IDEA
The risks that your idea does not make too much sense, or that it does not inspire you too much to start it up and even that it has no special interest, are very high.
But you must have an idea to filter. If you do not have it, you may be interested in reading these 4 steps to generate good business ideas on the Internet.
To discard or filter the bad ideas I like to subject them to a kind of stress test (as they did with the banks during the crisis, come on), to see if they endure a little shaking and continue standing.
We go with the risks of death:
1. THE RISK OF THE ENTREPRENEUR
I am referring to the motivation, the capacity and the possibilities for the entrepreneur to turn the idea into a project in a reasonable way at a certain time.
And I talk about your motivation first, is it something you like?
You should know that most ideas from the cemetery were good ideas and very profitable that had people who were not passionate, and so soon after they left.
Do you have a special ability in the subject in which that idea of business on the Internet circulates?
Nor will you pretend to start with an idea of an application of cooking recipes, if you do not like to cook or know how to program applications, do not you think ?. Maybe you can find a partner that complements you but what is your contribution to the idea?
And finally the possibilities of the entrepreneur, their availability, and involvement.
If you do not have time, or you can not invest any amount, or first you want to do a training course, maybe what happens is that the idea is not so good, but you would not make excuses.
2. THE RISKS OF DEATH THE PRODUCT
The second filter is the real possibilities of turning that idea into a concrete product.
In this case, there are ideas that pass quickly the filter if you want to sell something that already exists or offer a service for which you are trained, translation if you know languages, nutrition if you are a nutritionist because you already have it.
However, your idea is of the type of the solar car, the cure against cancer or the secret of eternal youth, because we will have to look a little more in detail because of there may be product risk.
All ideas that are between these two extreme assumptions are likely to have a product risk, understood as the possibilities of being able to develop and build that idea.
3. THE CLIENT’S RISK
How many wonderful products or services appear in the market, essential products in the minds of the creators of the idea, but unfortunately they pass without pain or glory because nobody needs them?
Why launch a Product / Service / Idea to the market?
Ask yourself first if someone really needs it, ask yourself who that someone is. Do not define it as male people from 25 to 35 years of medium-high purchasing power, no no no, please.
Tell me about a specific client, with name and family name, where he lives, what he is dedicated to and most fundamentally, what hurts when he gets up in the morning? (referring to what you offer, of course).
Find specific people with specific problems. In the end, everything is summarized in products designed for people with problems, do not you think? If you do not solve a problem (aspirin type) or provide a great advantage (vitamin type) you will hardly find your ideal client.
What is your client’s pain?
Find that customer, and when you have it, ask him and confirm your assumption.
Then and only then can you offer your solution to your problem, in the form of your Product / Service / Idea.
4. MARKET RISKS OF DEATH
Where do your clients meet? Are there enough customers? Can you find them and access them profitably? What does it cost you to get a new client?
This is perhaps the main risk when you decide to undertake unless you have a very special idea, or an important marketing budget for a good launch, which we are sincere will be difficult if you are a first-time entrepreneur.
But we live in a fantastic time to start since years ago. We did not have access to the current amount of information, nor to the liberalized markets and electronic transactions around the world, so you can define strategies to attract customers’ low cost ‘ But if you have no idea how to do it, maybe we have a problem with that idea.
5. BUSINESS RISK
Finally, I recommend doing four quick numbers to determine the possibilities of your idea becoming a business, that is, selling to so many customers and with a gross margin that allows you to cover the fixed expenses and make money.
But you will have anything else, but not an idea of business on the internet.
I’m not worth it, Twitter and Facebook did not have income in their principles, you are an entrepreneur with few or very few resources (they are the majority of my readers and clients) and since you start your venture you have the months counted before you get finish the resources.
I tell you about the economic viability of your idea, what traffic exists for relevant keywords of your idea. How many visits and conversions (or sales) you will reach and how you will do in your normal and pessimistic forecasts.
And with the estimated monthly sales, discounted the costs of sales promotion and variable expenses, is there enough to pay fixed costs? Do you have left to amortize the investment? benefit?
As I said at the beginning, I am dedicated to analyzing business ideas on the internet of first-time online entrepreneurs. And I advise you to confront your idea with these five risks of death of all online business.
We also recommend you to read this article: http://seattlegreekamericans.com/the-importance-of-keeping-your-business-safe/