An Idea is the superficial part of starting a business. Anybody can have an idea, but only some ideas are profitable. Beyond the initial rush of adrenaline that comes with a concept, you must examine your idea to see if it’s worth pursuing. To succeed, you need an excellent idea for a product or service that people actually want to use. But how do you know if your product is good enough to start a business? We interviewed our successful clients to get an answer to this question. Before you put your money and time into hiring professionals and setting up an office space, here are actionable steps to determine if an idea is marketable.

1. Pick proven categories

Depending on the time in history; studies have shown specific industries to grow exponentially. You should check if what you are trying to do works or has a high chance of working based on proven concepts. In the 1900s, manufacturing was the golden industry, with many people developing ideas to process raw materials into new products. The past decade has shown us the potential of the tech industry and sustainable manufacturing. Build for sectors that are growing and constantly evolving. For example, education, health, and agriculture are becoming increasingly digital; you can tap into the trend and build programs that simplify processes within those industries.

2. Identify a Solvable Problem

Before diving too deep into your idea, ensure it tackles a problem people will pay to solve. At the very least, it should address a pain point that people have; provide something they want. Admittedly, successful businesses are built around products or services consumers didn’t know they needed until companies offered them. However, one underlying factor is an appeal to people’s emotional desires.

3. Market Research

The research stage is a critical process many aspiring entrepreneurs skip. The prospect of facing the reality that your idea might not be as exceptional as you think makes it seem reasonable to avoid this stage. However, you must talk to or learn about your potential customers to determine their needs and see how your software design fits them. It is the phase where you put all your assumptions to test and assess the market size and what your share in the market could be. You should also evaluate how your business plan will fare in the race for venture capital and other forms of capital. Look at what investors are putting their money into, and you will get a clearer picture of your product’s marketability.

4. Get Feedback From Others in Your Industry

An idea might be perfectly sellable. Still, certain impediments within the industry or market trends might make it challenging to pursue depending on the period, or maybe there are even preferable seasons for sales. To get a grasp of this, check in with the competition to understand the industry’s inner workings. Don’t be afraid to solicit feedback from other entrepreneurs in your network, as they can provide valuable insights and connections to help you start strongly.

5. Test your Idea

Finally, and most importantly, you must test your product or service on a smaller scale before committing to anything more significant. Putting a carefully implemented version of an idea into the market is essential. Depending on your business model, a focus group or minimum viable product (MVP) might be the key to success. Whether you are conducting alpha testing to eliminate any issues or beta testing with your potential users, you can get valuable feedback that will help you improve your product.

Elements that make a Marketable Idea

As a business owner, consider the following criteria to validate your software concept before you pump money into it.

1. Profitability

This is a crucial criterion because the proposed plan should make enough money to cover costs and give you a decent return on investment. Also, you need to define what profitability could mean to you. While some entrepreneurs are okay with single-digit profit margins, some are not.

2. Sustainability

Can your business thrive, and last long-term, or will it disappear in a few years? Does your company allow room for growth and adoption of modern business practices? Also, with the increasingly devastating effects of climate change, there is a need to consider if your business is environment-friendly.

3. Steady Cash Flow

Some enterprises are infrastructure-heavy, meaning that the business endeavor will tie down much of your capital in assets necessary for the business’s survival. If this is the case, you must find a way for the company to generate a steady cash flow to offset recurring expenses.

4. Innovation

Does your idea offer something that no other business provides or does your business offer something that others already offer differently? Then you might be on your way to a very marketable idea.

5. Competition

How intense is your industry, and how will you stand out from them? Is there an industry behemoth already? What can you do to outperform them? Considering this criterion, you can assess whether your idea has a good chance of success. If it does, you can begin the groundwork.

6. Legal and Regulatory Support

After all is said and done, your idea might be what your consumers need, and market research might indicate that the time is right for your idea. However, pursuing an idea without legal or regulatory support might be challenging. For example, you cannot establish and scale a marijuana business in a country where marijuana is illegal without running into legal problems. Similarly, you cannot expect full redress if you run into issues if there are no institutions or regulations designed to support your type of business.

Do not get Frustrated!!

Knowing whether an idea is marketable can take time and effort. However, following these strategies, you can better understand whether your business concept is worth pursuing. It is important to remember that even the best-laid plans can fail, so ‌be ready to iterate and pivot. Don’t get stuck with a romanticized version of your idea; it is a long road from conception to implementation. Your product will change as you learn more. With enough research and hard work, you will eventually find the perfect marketable business idea.