What makes a business idea viable?

Before we begin the subject of this post, let’s define a business idea.

A business idea is a concept that is used for financial gain (Wikipedia). This definition is a clear indication that any idea you are running that doesn’t give financial gain either in the long run or the short run cannot be termed a “business idea”.

From the definition we can draw inference on the fact that every idea should be able to give some sort of financial gain no matter how small. However, the major issue is people start businesses for different reasons and end up not making any profit or falling into the statistics of startups that fail in their first five years of existence (read why startups fail here).

Business is more than passion, it is profit oriented.

Characteristics of a business idea

• Problem solving

Every business should solve a problem. We have established that the sole aim of a business is to make profit. Therefore, you have to devise a means to make profit. You make profit from what your consumers are willing to pay. People will only pay for problems solved not for nothing. Until you start, you will not understand how hard it is for people to part with their money.

• Uniqueness

Uniqueness doesn’t necessarily mean that you should do something that has not been done before. I am not saying that introducing change is a bad idea; all I am saying is waiting to do something entirely new may cause you to wait a lifetime.

Uniqueness in this context is bringing something new to an existing idea. The truth is whatever you are planning to do have already been done by someone else or someone else is also in the planning stage as you. The work on your hands is remodeling your idea and carrying it out in a way that has never been done before.

• Manageability

A business will not manage itself. At the idea stage you have to put management into consideration. Management is the bedrock for every thriving business. It is not only about just putting the business up if management is not at topnotch level, you are only playing around.

• Affordability

You don’t start or manage a something with the words of your mouth. You do that with money. An idea may look beautiful but without funding it will remain an idea.

Rate your business idea yourself, if your business ranks high on the above characteristics then what exactly are you waiting for?

Check out what qualifies you to call yourself an entrepreneur.