You’ve got an idea for a business.
But what do you do with that, exactly?
Don’t do what most people do and sit on it, procrastinating.
That is the best way to NOT be successful and to cause yourself more torment.
If you have an idea you need to establish a few things.
- Is there a market for it?
- Is it something that people will pay for?
- Has it already been ‘done’?
- Can I make it profitable.
Forming a viable business idea
Basically you need to determine if your idea solves a big problem that a lot of people will pay to solve. Understand?
The precise moment I came up with the idea for Mindfulpreneurs…
For example, you might want to launch an online course to teach people how to properly chop vegetables.
I’m sure there is a market for that but there are probably thousands of videos available on Youtube that show people how to do it.
Plus the fact it’s not a problem that anyone would PAY to have solved for them.
So that idea is garbage.
Another example, you might want to launch an online course showing people how to take amazing pictures with their iPhone.
There is definitely a market for that, I’d say the ‘older’ generation of iPhone users that don’t grasp technology very well, nor do they have great knowledge of Youtube and so on.
I’m sure there is a large chunk of that market that would pay SOME money to have that problem solved for them in a concise and easy way – through a simple, video guided online course.
You see, the payoff from the iPhone picture course is greater than the veg chopping course.
If somebody has already forked out a wedge for the iPhone but they don’t know how to use it – they will likely pay a bit more to be able to take lovely pic of the grandchildren, pets and wildlife (for example).
Whereas being able to chop veg a bit finer or faster means you can cook a bit quicker… But there’s no emotional connection.
Providing value and becoming profitable
When you have an idea that solves a problem that people emotionally connect to and genuinely want solved – you then need to work out how much it’s worth.
So, back to the iPhone pics course example.
This is not something anybody will pay $1000 for.
It is supplemental to their expensive iPhone, so they will not be looking to spend more than $100 dollars for (maximum).
This is because it has a low value of result.
What I mean by that is, the result of having the problem solved (being able to take nice pictures) is low value compared to something like, for example, losing a stone in weight over 4 weeks.
So it’s about finding that balance of cost versus result.
Losing weight quickly is something people potentially pay thousands for. And a program to achieve that would be complicated and require a lot of effort to put together and sell.
But it would be incredibly easy to put together a video training course on how take great pictures with an iPhone, so your time and effort expended is not as severe as a 4 week weight loss program.
I would price the iPhone camera course at $57.
The weight loss program at $397.
Red ocean Vs Blue ocean markets
This is about the competition.
If you go into a massively competitive market, such as weight loss, where there are loads of sharks bloodying up the weight loss ocean, you will struggle to gain any traction, even if your product is the best.
So you are better off creating a nice blue ocean with no sharks, so you can feast on the market.
Now, it’s easy to misinterpret that as me saying you need to go and create a market for your product.
That will not work.
You need to meet the demands and solve problems that already exist but come at it from a different angle or be the first to recognise the problem.
So, in our iPhone camera example, there are probably many solutions on the market already, but how many are tailored specifically for older folk who are technology-shy?
To create your blue ocean there, you simply need to address that demographic specifically and emotionally connect their pain points only.
These may be:
- accidentally taking a picture instead of recording granddaughters happy birthday celebration
- constantly taking blurry pictures of the dog at the beach
- not getting the whole family in shot when they come to visit and so on
Ultimately they are failing to capture precious moments with their loved ones on their iPhone.
Ok I hope this made sense. I don’t want to ramble on too much but hopefully this will help you form your best idea and get things moving with your business. Just contact me if you have any questions!