What do you do if your business idea seems too good to be true?

After coaching 500+ startups over the last decade it's always the "unknown unknowns" that kill a startup. As an entrepreneur, "We know what we know" and "We know what we don't know". But it's the unforeseen unknowns that always sink a business in the early years. That's the importance of validating your idea and getting out of the building early. One of my favorite pieces of advice for first time entrepreneurs is when they hear the rule of thumb that 80% of businesses fail, they think that it means from the inception of an idea. In fact, it's 80% of businesses who believe it's a great idea, that it can't fail, and move forward executing. That is a crucial difference and why validation is key.

If a business idea seems too good to be true, validate it thoroughly before proceeding. For example, conduct market research to assess demand and competition. Gather feedback from potential customers through surveys or focus groups to understand their needs and preferences. Additionally, analyze financial projections and feasibility to ensure profitability and sustainability. For instance, if proposing a new subscription-based service, validate the idea by piloting it with a small group of beta testers to gauge interest and gather feedback. By validating the business idea, you can mitigate risks and make informed decisions about its viability and potential success.

Create prototypes or minimum viable products (MVPs) to test your business idea with real users before fully launching. Prototyping allows you to gather feedback early in the development process, iterate on your concept, and identify areas for improvement.

Creating a business plan before starting is a wonderful way to see whether your business idea works. Do some market research. See what customers are currently buying. Research your competition and what they are doing. Be realistic about your skills and budget. If your idea isn't solving any problems, it is not a good one. So, approach this issue with the idea of solving problems for other people. There are plenty of problems in the world; not so many helpers.

Make an MVP in 2 weeks -> Get validation from customers, business leaders & investors. That should give you good enough juice to decide what to do next.

Planning thoroughly is essential for the success of any business endeavor. It involves mapping out all aspects of the business, including but not limited to the market analysis, target audience identification, competitive landscape assessment, revenue streams, cost structures, marketing strategies, and operational processes. Thorough planning helps in identifying potential risks and challenges early on and allows for mitigation strategies to be put in place. A well-thought-out plan serves as a roadmap that guides the business towards its goals and objectives while providing a solid foundation for decision-making and resource allocation.

Incorporate scalability into your business plan by outlining strategies for sustainable growth over time. Consider how you can expand your customer base, enter new markets, or diversify your product offerings while maintaining operational efficiency.

After validating your business idea, developing a comprehensive business plan is crucial. This plan acts as a strategic blueprint for your venture, detailing essential aspects like your business model, marketing strategies, financial forecasts, and operational guidelines. A well-crafted plan not only aids in foreseeing and navigating potential challenges but also plays a pivotal role when engaging with potential investors or lenders. It demonstrates your business's viability and preparedness, showcasing your commitment and strategic approach to building a successful enterprise.

The value isn't in the idea, it's in the execution. The idea is the easy bit. Once you get rolling with the implementation the momentum will build and it will be harder to pause, reflect and make changes (even though you must). Like any long and complex journey, the key is in the planning and preparation. You can't plan for everything, but a failure to plan is reckless and rash. Yes, things will change when you're out there on the road, but at least you've got a map, you've packed accordingly, and you know you're headed in the right direction.

Conduct comprehensive market research, analyze competition, and assess potential risks and challenges. Develop a detailed business plan that outlines strategies for execution, scalability, and sustainability. By meticulously planning every aspect of your business idea, you can identify any weaknesses or areas needing improvement and increase the likelihood of success in the long run.

Seeking advice from experienced mentors, industry experts, or trusted advisors can provide invaluable insights and perspectives on your business idea. These individuals can offer constructive feedback, help identify potential pitfalls, and suggest ways to refine and improve your concept. Their guidance can help you make more informed decisions, avoid common mistakes, and increase the likelihood of success for your business idea.

Even if your idea appears revolutionary, consulting with mentors, industry experts, or experienced entrepreneurs is invaluable. These seasoned individuals can offer new viewpoints, question your presuppositions, and impart wisdom from their journeys. Their external perspectives can illuminate blind spots, provide strategic advice, and help you navigate the complex landscape of launching and growing a business. This guidance is crucial for refining your approach, avoiding common pitfalls, and enhancing your strategy's effectiveness, thereby increasing your venture's chances of success.

Share your idea with knowledgeable individuals who can provide valuable insights and perspective. Their feedback and expertise can help you critically evaluate the feasibility and potential challenges of your idea, guiding you towards making informed decisions about its viability and next steps. Collaborating with experienced individuals can also offer valuable guidance on refining and strengthening your business concept for greater success.

Don't go it alone—seek advice from mentors or experts. They offer fresh perspectives, challenge assumptions, and share valuable experiences. Their insights help you see things you might miss in your excitement.

Risk assessment and mitigation are fundamental aspects of successful entrepreneurship. To manage risks effectively, you need to identify potential challenges your business might face and devise strategies to address them. This involves analyzing internal risks, such as operational inefficiencies or resource constraints, and external risks, including market volatility, competitive pressures, or regulatory changes. By understanding these risks, you can develop contingency plans and proactive strategies, enhancing your business's resilience and adaptability. This comprehensive approach to risk management not only prepares you to navigate uncertainties but also contributes to the long-term sustainability and growth of your venture.

Conducting a thorough risk assessment is crucial when your business idea seems too good to be true. Identify potential risks and challenges that could affect your idea's viability and develop strategies to mitigate these risks. By understanding the risks involved, you can better prepare for potential obstacles and make informed decisions to safeguard your business idea's success.

Entrepreneurship involves managing risks. Identify challenges and develop strategies to mitigate them. Consider internal issues like operations and external factors such as market changes. Assessing risks helps build a resilient business.

If you have the time and resources, creating a test product can be worth it. Even if the product is offered for free, it will give you insight into the demand for the product. If the product is good (based on feedback) and there is demand for it, you can then continue to launch your actual product.

Indeed, you need to develop a prototype or minimum viable product (MVP) to test the concept in the real world. By gathering feedback from potential customers or beta testers, you can access whether the idea solves the genuine problem or fulfils a need in the market.

Testing the market is essential when your business idea seems too good to be true. Conduct market research, gather feedback from potential customers, and test your idea on a small scale before fully committing. By validating your idea through market testing, you can gain valuable insights into its feasibility and make necessary adjustments to ensure its success in the long run.

Validate your idea by seeking early adopters. Offer exclusive access or discounts to a select group of customers in exchange for feedback. Their responses can provide invaluable insights into your idea's viability and potential market demand. By involving early adopters, you not only validate your concept but also cultivate a loyal customer base from the outset.

Before diving in, test your idea on a smaller scale. Create a prototype or launch a minimal viable product (MVP). This lets you gather feedback and make adjustments without major costs. Testing helps verify your idea's appeal and functionality.

Staying agile is crucial when dealing with a business idea that seems too good to be true. Being flexible and able to adapt quickly to feedback, market changes, and evolving circumstances can help you navigate potential challenges and seize new opportunities effectively. Embrace agility in your approach to keep your business idea on the path to success.

Like Guy Kawasaki says: Let the 100 flowers blossom. Plan your seeds and if someone decides to use to product in a different way, embrace it. Pivot and give them more ! You mindset is your limit here

Stay flexible in the business world. Be ready to pivot based on feedback and market trends. Agility lets you adapt to customer needs and changes in technology or competition. By staying agile, you can refine your business and increase your chances of success

Everybody has ideas, Very few people transform them into real projects or products. Don't listen to people trying to drag you down. Test Test and Test

Approach your great business idea with cautious optimism. First, conduct thorough market research to validate the demand and identify potential competitors. Dive deep into customer interviews to ensure the problem you're solving is both real and sufficiently painful that customers will pay for a solution. Develop a minimum viable product (MVP) to test your concept in the real world without a huge upfront investment. Seek feedback early and often, adjusting your approach based on what you learn. Remember, a great idea is just the start; execution, adaptability, and resilience are what ultimately turn a too-good-to-be-true idea into a successful business reality. #CautiousOptimism #ValidateAndServe

If the idea is too good to be true, begin by conducting thorough market research to understand demand and competition. Validate the idea through feedback from trusted advisors and an MVP to gauge user interest. Assess financial viability, including costs, revenue potential, and sustainability. Address risks by identifying and planning for potential challenges. Leverage your extensive network for insights, and protect your idea with appropriate intellectual property measures. Build a strong, complementary team and craft a detailed business plan. Start small with a pilot, iterate based on feedback, and consider funding options for scaling. Your background equips you with the tools to critically evaluate and pursue this venture successfully.