4 questions to test the viability of a business idea

1. Does the business idea fit into the new realities?

If you got it before the pandemic, rethink your plan carefully. Consider whether the market needs your products or services in the same way as before.

You may find that the need for them has disappeared or, conversely, increased. Ask yourself if they have become a luxury that people cannot afford in the changed environment. Take a close look at your unique selling proposition and see if it is relevant.

If your business is about live customer communication, it can be difficult to get started right now. Consider if you can adapt the idea to online formats. That being said, do not try to completely tailor your project to the current environment if you want it to be successful in the long term.

2. How saturated is the market already?

This question is always relevant, even during crises and economic downturns. Many startups that started during the recession later noted that it was easier for them to attract attention due to fewer competitors. But it is still extremely important to conduct a market analysis.

Take a close look at potential competitors. If the market is already oversaturated, you may want to look for more options.

On the other hand, if you have an idea and no one is doing this, this can also be a wake-up call. If so, consider if there might be some hidden factors that you are not aware of.

If your idea is optimally positioned between a crowded market and a complete lack of competition, try to find out if other companies have already tried to implement something similar. If they fail, analyze what factors led to it.

By itself, this does not mean that the idea is bad. Perhaps they approached its implementation incorrectly or they did not have enough funds. Learn from this and use what you learn when planning your own launch.

3. How well defined is the niche?

This is always important, and in times of uncertainty it is absolutely vital. Think about the specific group of people you want to offer your product or service to and what has changed for them since the coronavirus.

Your target audience may have new requests. For example, working mothers now also need to teach their children at home. Many gym-goers have switched to home workouts, and office workers have to create comfortable workspaces at home.

Consider the latest trends and try to determine as accurately as possible which market segment you are targeting.

4. What do people think of this business idea?

The best way to understand how good your idea is is to ask others. And not only friends and relatives, but also those who are impartial. Try to find out the opinion of people who are not interested in your success, who could become potential clients or investors.

It is convenient to conduct online surveys and collect feedback on social networks. Just be careful how you design your survey so that it doesn't end up supporting your hypothesis. Try to understand the psychology of the audience and its problems. Perhaps in the process your idea will be reborn or you will come up with a new one.

Don't forget to make new connections. Please note that if you find it difficult to connect, it will be difficult for you to succeed in entrepreneurship.

Ultimately, companies that adapt to market needs and changing consumer preferences will succeed in the new realities. Another lesson learned from the pandemic will help you achieve stability in the long term: the main thing now is the ability to rebuild.