So often, random creative(and even crazy!) idea pops into people’s head and they start thinking, “This idea is ‘The Best’! The market needs it and it’ll sell rampantly”. But all that is thought does not necessarily turn out to be true. Every year, every month, and every day, there are new businesses opening with this same belief of “My Idea is the Best”. Do all ‘best’ business ideas turn out to be ‘best’ businesses? No! We analyze here what happens in the following paragraphs:
HAVE YOU REALLY UNDERSTOOD THE MARKET & ITS DYNAMICS?
The most important question that you need to ask yourself right after you think your business idea is the ‘best’ is this – Have you really understood the market of that idea? Few more questions follow:
- Do you know what is your targeted market?
- Does the market really need your business idea/product?
- Is the market ready for your product?
- How has the market been coping now without your product?
It is really necessary to understand the market and market dynamism before you launch your product. For example, YouTube was launched in 2005, when the worldwide internet subscription was growing and the market was ready to accept online video content viewing. Bill Gross, in his TED Talk video “The Single Biggest Reason why Startups Succeed“, talks about how his online entertainment company – Z.com – failed despite having raised enough money, having great business model, and signing incredibly great Hollywood talent to join the company. Gross says that the broadband penetration in the United States was too low to watch video content online, due to which their company ran out of business.
DO YOU LIKE MY PRODUCT v/s WILL YOU PAY FOR MY PRODUCT
There is one big misconception we have – “My idea is the best, so people will buy it”. No! People will not buy every ‘best’ ideas. First, they’re people – they’re humans! Second, it is their hard earned money they have to take out of their pockets. They will not do it very simply.
Imagine you cook well, and you think one of your dish is the ‘world-best’. Now your closest friend may know that you cook that particular dish very well, but they will not necessarily spend cash amount to pay for your product. It is a hard-to-digest fact, but still remains a fact. To understand and give your idea a reality check, as your friends and/or relatives! They might buy it for the first time due to the relationship. They might buy it the second time just to satisfy your heart. But they will not buy it the third time unless they themselves are in desperate need of it!
So make sure you understand the market dynamics and think will people really pay for your product/business idea!