Entrepreneurs are individuals full of business ideas which they passionately wish to pursue yet the hard reality is that the ideas may be great but many times it will still fail due to various factors related to the market and customer preferences.
We have listed below a few signs that indicate your ideas are bad and you should start looking for alternatives;
No Demand for Your Solution:
Your ideas must be great and the solution your company is providing is top-notch but what if your customers do not have any problem which needs to be solved by your solution? This means your product has no demand in the market, hence any number of efforts will not be enough to have a positive cash flow. Quit the idea and focus on finding real solutions to customer problems.
Customers Are Not Willing to Pay the Product Price:
A successful business can be run only if people are willing to pay more than the product costs or else you will have a negative cash flow in the company and the business will tank. If your expenses are not covered by your customers’ willingness to pay, then it would be better if you switch to a cheaper product or a target market that could afford to pay for your pricey products.
Potential Investors are Not Interested:
Every business runs out of capital at some point and needs to find a new investor who is willing to invest in the company. Meet a few investors and explain your business idea, if they understand and want to invest in the business then you are good to go. If not, you know in the near future when you need cash you may not have the support of investors. Investors hear hundreds of business ideas and know the market thoroughly hence if they have some doubts about your business idea, maybe you need to re-evaluate it yourself.
If you are still confident about your idea, then you can proceed with the business but be prepared to arrange for extra funds from the beginning. Instead of investing all the capital money to start your business, invest a small part of it in a side business like trading with the help of an expert broker from elitetrading.de, which will not consume a lot of your time but can help you collect extra funds for your business.
Competitors have Tried and Failed:
In today’s world, so many start-ups open and shut frequently that almost all business ideas have been used, tried and tested hence if your idea has been tried by another company and they have failed in the same, ask yourself what makes your company different that you will succeed. What have they gone wrong with which you will be careful? Have they failed because of the company’s inefficiency or, market instability? You need to answer these questions before you can decide if it is the right business for you and your company.
Your Solution is Dependent on the Existence of an On-Going Fad:
In this era of internet, fads come and go hence if you base your products based on such fads then the lifespan of the product would be as long as the fad lasts. Focus on providing solutions which will always be in demand as the fad requirements may be really high in today’s market but if you base your business sustainability based on the fad, then your company will crash in a short span of time.