What do you do if your business idea needs a reality check?

IMO, obtaining enough evidence is the ultimate goal for making a data-driven Go/No-Go decision that prudently manages risk while aggressively pursuing value-creating opportunities that meet robust corporate governance standards. > analyze customer interest and purchase intent via surveys and focus groups > conduct conjoint analysis to determine best-selling features and prices for products > examine competitors, substitutes, and alternatives that may eliminate the product idea > conduct secondary research to determine market size, growth projections, and attractiveness

It is essential to verify the market for viability. We can investigate the demand for one's business idea through surveys, crowdfunding campaigns, and by analyzing business models and financial projections.

My perspective is more on the small business and startup side. What you need to find out here is whether the problem you are trying to solve actually exists or not. The other is whether it's big enough for people. How much it hurts? What other problems stem from it? What are the real root causes? Are your potential customers willing to pay for a solution to the problem? It is very easy to fall in love with our own ideas. Try to remain objective about the results and try to avoid asking suggestive questions.

Have you ever heard about the monkey experiment with the ladder? The pain and the possible demand is not always clear for even those who are experiencing it. Those monkeys would probably ask for a ladder which can't be climbed by newcomers. Most of the times you have to put yourself in that situation with a fresh eye to recognize the crazy things people do on a daily basis just becase they used to do it that way for a long time. The best inventions and startups came from a personal pain at a corporate workplace where nobody were interested in the solution but the maintenance of that "order". What does it tell you about the corporate life? :)

To understand and analyse the market, you need to carry out a SWOT (Strength, Weaknesses, Opportunities, Threats) analysis of your company. This tool enables you to take a step back and analyse the market by encompassing a company's environment (internal and external). Market monitoring involves asking a number of questions: What type of clear communication? What pricing policy? Which catchment area? Market mapping can also be a tool for obtaining an overview of the positioning of your study and determining the company's competitive advantage according to several key criteria. This makes it possible to estimate the competitive intensity of the market, enabling you to anticipate your strategy.

Start by conducting thorough market research to understand the demand for your product or service. Evaluate the size of the target market, identify competitors, and assess potential barriers to entry. Gather insights into customer needs, preferences, and buying behavior to validate your business idea.

I think an important piece of insight is that direct competitors are not the only ones. Try to think about substitute products as well. The biggest competitor usually is people's love for the status quo, or high switching costs. Try to account for these as well. In terms of actual competitors, don't just think about the functional attributes, but their entire value proposition, positioning, and even their Emotional Selling Proposition (ESP). A good tool for visualizing competitors might be the use of a perceptual map.

I am simplifying a little, but when developing your pricing, here are a few things to consider: - Customers don't care about your costs. - Customers only care about the value they get (relative and absolute), and whether compared to that your prices seem fair or not. - Customer value is entirely subjective. It is affected by factors such as: Perception of quality, loyalty, brand, relationship between customer and supplier, problem-solution fit etc. - If you increase your customers' percieved value, you can increase your price. - The difference between your price and your cost is your profit. - If you increase value and decrease cost (with automation and optimization) you will maximize profit.

Evaluate the financial feasibility of your business idea by estimating startup costs, projected revenue, and potential profitability. Create a detailed financial forecast that includes expenses, revenue streams, and cash flow projections. Assess whether your business idea has the potential to generate sufficient returns on investment to justify the risk.

Be open to iterating on your business idea based on feedback and insights gathered during the validation process. Be willing to pivot or adjust your strategy if necessary to better align with market needs and opportunities. Embrace a flexible mindset and approach that allows for continuous learning and adaptation.

When my business idea needs a reality check I will get myself doing sales and if required will improvise the product as per customer demand and general market acceptance keeping myself open to accept the product with the improvisations.

When a business idea needs a reality check, conduct thorough market research to validate its feasibility and potential. Assess market demand, competition, and target audience preferences. Seek feedback from industry experts, potential customers, and mentors to identify strengths, weaknesses, and potential obstacles. Analyze financial projections and consider scalability and sustainability factors. Be open to adjusting or pivoting the idea based on insights gained during the reality check process. Ultimately, a reality check ensures informed decision-making and increases the likelihood of success for the business idea.