How to Turn your Idea into a Business Idea

Have you ever wondered how to take a concept, and turn it into an actual business idea?

I’ve recently started an online course about entrepreneurship called the Kauffman FastTrac.

This is probably the best, free online course on entrepreneurship that I have come across yet.

This week I’m learning how to take your idea, put it to the test, and take it to the next level!

A business idea is an idea that is worth setting up a business for that can help a lot of people.

It identifies a problem that has not yet been solved or addresses that problem in a new way.

It revolves around a product or service that can sold to those people for a sustainable profit.

In this blog, I talk about what the key considerations and how to talk about your new idea.

I also talk about creating an elevator pitch and the entrepreneur risks involved in the process.

Finally, I discuss if a cofounder is needed for your business and additional reading resources.

Key Considerations

In my other blog, I asked whether your idea is a good fit for you personally and professionally.

However, the next question to ask yourself: is your idea a good fit from a market perspective?

Here are some key considerations that are typically good signs that you have a feasible idea:

• Solves a real problem: Ideas that solve real problems always stand out from those that don’t.
• Involves significant savings: Ideas that save people time, money, or both will be in demand.
• Fits consumer behaviour: Ideas that fits with people’s behaviours will requires less resistance.
• Talk to people: Don’t make assumptions, go out and actually talk to people about your idea.
• Make sure there is real need: Your idea must not only solve a problem, but also for a profit.
• Who are your customers: Can you relate to customers? How do you communicate to them?
• Avoid obsolescence: Is your idea based on a current trend that will fade away after time?

Sometimes business ideas seem great in your head, but they may not work in the real world.

That is why you always have to follow these key considerations, and look for the green light.

Talk about your Idea

It’s very important to go out and speak with other people about your idea when starting out.

While doing so, you need to be able to communicate the following questions to those people:

• What’s the customer problem you’re solving: it helps if you experience the problem yourself.
• How does the product/service solve the problem for the customer: be as specific as you can.
• How is it different from other products/services: what makes it stand out from competitors.
• What’s your competitive advantage: what’s your unique selling point, also known as the USP.
• Who will buy it: why would the customers identified go out and buy this? Is there evidence?
• Will they buy it from you: You’re competing with others, What will make them buy from you?

You’ll only know the answers to these questions by talking to people and conducting research.

You’ll hone your understanding of all these points and may even pivot based on the feedback.

Create an Elevator Pitch

An elevator pitch is a short pitch that explains what your business does and why it is unique.

You want to get your message across quickly and clearly by containing the following elements:

• Attention grabbing first line: Start it with a statement that will make them want to hear more.
• Description of product or service: Explain how it meets an opportunity and solves a problem.
• Description of the people in the business: Talk a bit about you and your team’s background.
• Benefits of investing in your business: Show how your business stands out from competition.
• Call to action: End with a request, set up meeting, look over business, suggest investors, etc.
• Show your personality: Show them your enthusiastic passion through the way you deliver it. 

Many entrepreneurs find it uncomfortable and awkward promoting themselves and business.

The good news is: you can become comfortable by crafting and practising your elevator pitch.

Your Entrepreneurial Risks

Risk will always be a factor in starting a business, but with planning, you can help mitigate it.

Here are some things you can do to minimise the risk associated with starting a new business:

• Be patient: Know that a business takes years to break even will help you know what to expect.
• Take your time: Taking your time doing research and planning your business will mitigate risk.
• Build a skilled team: Bringing the right people on board from the start will reduce some risk.
• Ask for help: Seek guidance from mentors to avoid mistakes and speak to customers early on.
• Start small: Don’t go spending a lot of money: start small and grow your operations gradually.
• Plan & design your business: Writing a business plan allows you to replace guesses with facts.

Success is never guaranteed: you’ll inevitably have to take some personal and financial risks.

By thinking through these elements, you can minimise the risks with starting a new venture.

Co-founder Considerations

Should you go it alone, or bring on a cofounder that can help you in your in the weakest areas?

In The Founder’s Dilemmas, the author talks about the main issues with having a cofounder:

• Are you right for each other: cofounders should share each other’s vision and compare them.

Knowing the similarities and differences from the start will avoid any surprises down the line.

• Roles and Responsibilities: Cofounders will not always agree on things, as is to be expected.

When a decision is to be made, they have to decide who will get final say in those situations.

• Rewards: Compensation is always a complex topic, especially when it comes to a new startup.

Cofounders must be honest about financial expectations and what they are willing to accept.

As the saying goes “two heads are better than one” and in a startup, it is certainly no different.

However, if the cofounders are not aligned, it may actually be better for you to go at it alone.

Has your Idea passed the Test?

If by the end of this blog your idea has passed then congratulations, you have a business idea!

Your idea has the potential to become a success business that helps a lot of people for a profit.

If by the end of the blog your idea has not passed then congratulations, you have still won!

You have found out that your idea is not a business idea and saved yourself time and money. 

Not every idea is a business idea: by following these steps, you can be sure you will get there!

Still considering a co-founder or building a team? I suggest you read: The Founder’s Dilemmas.

This book will reveal the common pitfalls that founder face in startups and how to avoid them.

So do you think your idea is a business idea? Please feel free to share in the comments below! 

If you’ve enjoyed reading, check out my other blog: Why do you Want to be an Entrepreneur?

Also, if you have any suggestions for future blog topics, please share in the comments below!