Today I want to take the time to address a key point in entrepreneurship. This is the importance of an idea. Why is the idea so important and how can you verify whether it will be a success?
By an idea I mean what your entrepreneurial venture will be. So for example me and my business partner set up Thai infusion gastro pub Escape Gastro Bar back in 2012. So the concept is Thai infusion cuisine and gastro pub culture.
The idea is paramount because it is what the entire business will centre around. If you’ve got an idea that isn’t going to appeal to the public then it’s going to fail. The concept of the Escape Gastro Bar worked because it appealed to people; there was success in the idea.
So how can you assess the viability of an idea? This is a complex question and there’s no definitive answer; every idea is different. However there are some overarching techniques that you can use to discern whether your concept is viable.
The first question you have to ask is, is there an audience there? If you have the best idea in the world, but it isn’t profitable then it’s useless to you. People have to want to spend money on it for it to be useful to base an entrepreneurial venture around it.
You also need to ask, is there a gap in the market? Although you can make money by competing with existing products, you’re never going to be truly successful by copying somebody else’s idea. It’s already been done, that service has already been provided and people associate it with somebody else.
If you have a unique idea then people can only get it from you. This means that not only will you make money but that you are likely to secure repeat business. Repeat business and customer loyalty are essential in ensuring entrepreneurial success.
You also have to think about offsets. You can have an idea that will appeal to people, that fills a gap in the market, but that costs an exorbitant amount to produce. Offset production costs against profitability. If you aren’t making enough money then the venture cannot be sustained in the long term.
In entrepreneurial ventures people often have a tendency to become so involved in their idea that they forget the practicalities. This is a mistake that can signal the end for your fledgling business. Don’t get side tracked by grand ideas and be practical.
Htet Tay Za.