Now that you have your business ideas from the last blog post, it’s time to find out which one makes money! This can be the scariest part for some of us, because it means we have to connect with others, and potentially risk failure, judgement and rejection.
But just remember – you can do this! There are millions of entrepreneurs out there that have taken their one-of-a-kind, unique path to running a business.
However, this stage can bring with it some bumps in the road! I want to mention those quickly so that you can avoid them.
Avoid These to Ensure Your Business Idea Makes Money
- DON’T spend all of your time and resources focusing on the things that do not matter right now. This includes a logo, tagline, fancy website, or whether your business should be an LLC or sole proprietorship. None of these details matter at this stage.
- DON’T get feedback on your idea from well-meaning family and friends who will probably tell you it’s a great idea anyway! General feedback from non-customers won’t put money in the bank.
- And most importantly, DO offer free or discounted products and services to actual customers so that you can get concrete feedback about what works and what doesn’t. This way you can improve and make what you sell amazing.
Now, onto the test. This is called the Common Sense Test, and it consists of four simple questions. This test will help you evaluate your ideas and eliminate those that either won’t be as possible or simply don’t measure up.
Here’s how it works. If you can’t answer yes to all four of the following questions, cross the idea off your list.
The Common Sense Test
- Do I have the real-world experience, skills or abilities to provide this product or service, or am I willing to work really hard to get them?
- Am I will to focus a majority of my free time on this for at least the next six to twelve months?
- Is the idea aligned with my goals and values?
- Is there a clearly defined, easy-to-reach market of people already spending money on this kind of product or service?
So which business idea of yours is viable and will be profitable?