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3 Easy Ways To Validate Your Business Idea

The IDEA-O-METER!If you’ve thought of a business idea – great! Your next question will likely be – will this work and is it suitable for me?

There are many different ways of validating a business idea. Some are very simple and some are much more in depth. In this post we’ll go through three easy ways to validate your business idea that won’t turn your mind into mush.

First up, if you are really pressed for time and you just want to be entertained while testing your business idea try The IDEA-O-METER! My super fun way of validating a business idea in about 2 minutes.

Done playing with The IDEA-O-METER? Great!

1. Is someone else already making money running the same kind of business?

If so this person has just saved you a massive amount of time. If someone else is making money doing the same thing then they have proven the business model for you. Although that doesn’t answer if it fits you. More on that later.

You may be about to ask don’t I need an original business idea to have a business? This article explains why it’s actually better if you don’t.

You do however need to make it your own.

I am one of many business coaches. But I don’t know of any that have a program like The Idea Generator or my Business Startup Coaching. My angle is to create processes and structures to get people great results fast in a fun way.

My branding is also very different to others. This is how I stand out. Fundamentally though the business model of being a business coach has been tested many times before me.

2. Is there a big enough group of people that really want what you have to offer and can pay for it?

If you don’t see your big idea out there in the market place, think about who would want what you have to offer so badly that they’d be willing to pay for it. Does this group also have the money to pay for it?

If both answers are yes and your pricing allows for you to make money, then you have the fundamentals of a business model.

3. Do you really care about this business?

That might seem like a strange question. Business is about making money right? I started my first business based on the fact that it would be profitable. Did I enjoy running it? No. If you don’t enjoy your business, it starts to feel like a shitty job and that’s not what you should be aiming for.

Think of it this way – if you won the lottery would you still want to run this business? That’s a really hard question to answer. Initially I was unsure. A holiday would be nice. Clients can be stressful at times. But actually I care so much about creating freedom for people so they don’t have to work in jobs they hate and can earn money doing something they love that gives them freedom –  that I think I would find myself doing it anyway.

I asked two other business women the same question and while they admitted you couldn’t know for sure they thought they would continue because they feel called to do the work they do.

Perhaps a less mind bending question to ask yourself is – do you really care about this business? Does it serve a greater good for you other than making money? Is it something you love to do?

If it centres around something you believe in, people are willing and able to pay you and you can create value while paying yourself a reasonable amount then at a basic level you have a validated business idea. Unsure? Try that IDEA-O-METER out.

Now I’d like to hear from you

How did you test your business idea before going out and trying it?

How did it go?

 

Let me know in the comments below…

If you’d like a more in depth process of finding your ideal business idea and validating it click here

Business Idea Starter Kit

4 Responses to 3 Easy Ways To Validate Your Business Idea

  1. I found above the problem I’m already aware of, and don’t know how to get around. I love what I do, get great feedback at it, but have only done it through religious or nonprofit organizations. I want to do the work independently, and don’t know of others who do so. I also don’t think there are enough people who’d pay for what I offer if they’d be doing so independently rather than through an organization.

    So I think I need to reframe what I do in some way, and am not sure how.

    I’m an open-minded rabbi, and am great at helping people who are Jewish, of Jewish heritage or in a Jewish family, who wish they could connect with Jewish tradition and community in ways that are personally meaningful and would enrich their lives. I work with them beginning where they are, either one-on-one or in groups or classes, and help them explore Jewishness and find the path that works for them.

    If this is too narrow a niche, I’m wondering if I could use these skills to offer Jewish wisdom to people who are or are not Jewish, and want to live more meaningfully, which is the issue I usually end up helping Jewish people with?

    I don’t know how to figure this out, and would love any input.

    • Thank you for commenting Bridget!

      As you say you love what you do but the two other elements – the confirmation of someone else running a similar business & the potential number of people willing and able to pay for it – are not completely clear.

      In this case the only way to find out if it is marketable is to start speaking to the people who you think you can help and may want your help and start asking questions. Find out what their struggles are, what they have done already to resolve them and if paying for a service would be an option.

      If it turns does turn out this niche is too narrow I would suggest asking yourself what is the result of the work you do. What do people come away with that would be irrespective of religion? That will help you find a reframe to broaden your niche.

      Thank you again for taking the time to comment.

      Cat

  2. Hi Cat!

    I’m totally with you that business ideas need to be validate! I have lots, and new ones weekly. :) I’ll be ready to launch a nutrition biz this fall, and I wonder how exactly to do #2: “Is there a big enough group of people that really want what you have to offer and can pay for it?”.

    What kind of market research should be done?

    Thanks!

    • Hi Leesa,

      Thanks so much for your comment and question. This question is so much more easily answered in person. Depending on what you are thinking of it may not necessary to do extensive market research. Also a lot depends on how you set up and market the idea. If you like you can book in for a 15 minute chat here and I can explain what I mean more detail specific to your planned biz.

      Cat :-)

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