Is your idea is good to convert into a business?



Today, In India we saw advertisements on starting a new business on tv everyday. If you have a good business idea no matter small or any big. But the question comes in mind that is....

 You don't know is it good to convert your idea into a business?

 In this article, I will give you some points that should help you in identifying your idea is good to convert into a business or not. Let's start.....

 You got your idea from any problem that you or your friend had faced or currently facing. So, your idea should be problem-solving rather than creating new problems for you. And if you want to convert your idea in business then you have to consider the profit for you and your company. For that, you have to know that your idea is solving the problem just for you or the problem of many people. If the problem is just for you then who will buy your product? If that is the case you should drop your idea and try to find out a new one.

 If your idea solves problems for many people that means you got your buyers or users. then comes the steps to know clearly that your idea is good to convert into a business.

 + Demand for your product/service: You are at this step that means there are many people who are facing the problem your idea is solving. Now, you have to know that, are those people willing to use your product/service? means is there any demand for your product/services?
If your answer is yes then your idea pass the first step in order to confirm that it is good to develop into a business.

 +Target Market: you have to identify the target market for your product/service. there are many factors to identify your target market.Target market means who is going to use your product/service? There are many factors to identify your target market. By finding your target market you can estimate the total value of your business. How bigger your market is you can find by identifying your target market. Let's look at an example.
If there is any printer selling company and you have to find target market than you have to look at 
- The average price of the printer.
- Which type of people is using a printer? 
- The time span of a printer. 
- How many new printers selling increase and how many people 
  will replace their printer.

 And if you are selling ink too than you have to look at
- The average price of an ink cartridge.
- The time span of an ink cartridge.
- Demand for color or b/w.
So, these are some basics you need to research about identifying the target market for your product/service.

 +Competitors: We have to calculate our competitors in your line of industry and substitute of your product/service and compare them with your product/service and see how it differs from your competitors. If it's same as what they are providing then you have to change your idea and if your product provides more benefits than their product/service you can consider it to convert into a business. 

 + Threat of Entry: This factor needs more attention than currently available competitors. The entry for new business is easy then it considers as the threat of entry. If you start a business in any industry you have to consider the threat about the entry of new business who maybe became your substitute. For example, if you are in the chemical industry and you are providing any detergent with good formula than it's difficult to make a substitute for that and so the threat of entry is low.
Now, suppose if you are in it industry and providing an e-commerce platform for your customers than anyone with money and broad network can be a threat to you cause they can be a substitute for your product/service easily. So, in this industry the threat of entry is high.

 + Power of Supplier and Buyer: In the market, this factor also plays a big role. See what product/service you are providing is not giving too much power to your supplier and buyer. For doing this you have to consider some points.
For supplier: - Number of suppliers
                     - Size of suppliers
                     - cost of changing

 For Buyer:   - Numbers of buyers
                   - Size of each order
                   - Difference between competitors
                   - Price sensitivity
                   - Cost of changing 
If your buyers and suppliers have more power then it maybe became a threat to your company in future. For a startup, the power of supplier and buyer is good if it's low.

 This is the things you have to know before converting your idea into a business if your idea can satisfy these terms your idea is perfectly right and good to convert it into a business. If you want to learn more about it you can learn from The Porter's five forces analysis. However, it should be good if check it out it will give you more detailed information about above these points.

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