How to know if you should turn your idea into a business

If you’ve landed here, chances are you recently came up with a new business idea, or perhaps you’ve had one living inside you for years.

Regardless of where you’re at in your entrepreneurial journey, you’ll know there’s nothing quite as exhilarating and exciting as a business idea you can’t stop thinking about (trust us, we’ve been there!).

When it comes to bringing your idea to fruition, it can be tempting to hit the ground running as quickly as possible. We’ve seen many eager new founders prematurely bring on business partners, make large investments, and take bold action before actually verifying whether their idea has merit.

To avoid making these mistakes, it’s important to carefully consider your business idea and ensure you’re prepared for the journey ahead.

Here are 5 criteria to help you evaluate whether to turn your idea into a business:

1. Does your idea keep you up at night (in a good way!)

Similar to dating, you want to have chemistry with your business idea. You should feel an initial spark and want to grow that spark into a long-term business. When you really love what you’re doing (and it’s not just lust) you’ll be more likely to remain committed to your business when challenges arise or you experience a slower season.

The following questions will help you evaluate whether you have an idea you’d actually want to turn into a business and run over the long term.

• Why do you like this idea? What’s special about it to you?

• Do you feel deeply connected to this idea? Or is it just lust?

• Are there any red flags when it comes to your business idea? If you choose to pursue your business idea, how might you address or mitigate those red flags?

• Can you see yourself wanting to run the business even when times get tough? Why or why not?

2. Does your idea solve a real problem?

The best business ideas emerge from profound human truths, and these truths are often only uncovered after careful consideration, observation, and research. Here’s an example of what we mean. In the early 2000’s, Procter & Gamble sent researchers into homes across North America to learn more about how people clean their houses, particularly their floors. After months of observation, the researchers discovered that people spent more time ringing out their mops in buckets than they did actually washing their floors.

This insight (or profound human truth) inspired Procter & Gamble to create Swiffer and completely eliminate the need to ring out a mop when washing floors. Swiffer is now a global brand found in millions of homes across the globe. It’s such a successful product because the company was able to tap into a human truth and offer a meaningful solution.

Luckily, you don’t need a team of researchers to uncover insights about your customers or clients (and you don’t need a eureka! moment this profound to create something of value). You simply need to be willing to observe, ask questions, and have conversations.

For example, you might consider conducting casual market research by asking people about their experience with products or services similar to the one you’d like to create. What frustrates them? What’s not working? What could be better or more efficient? What would make their experience more meaningful?

For example, you might consider conducting casual market research by asking people about their experience with products or services similar to the one you’d like to create.

• What frustrates them?

• What’s not working?

• What could be better or more efficient?

• What would make their experience more meaningful?

You could even observe people interacting with similar products and services in real-time and look for pain points and opportunities like Procter & Gamble did. Your research doesn’t have to be complicated, it just has to illuminate real problems and needs. At the end of the day, the most successful business ideas are the ones that reflect and support the human experience.

3. Have you put your idea through a stress test?

The right constructive feedback can be invaluable when determining whether to move forward with a business idea. You can begin to stress test your idea by asking people you trust for their honest feedback (this might include family, friends, mentors, advisors, etc).

Don’t be afraid to ask people to poke holes in your future product or service, and try not to take their responses personally. Think of their feedback as momentum to help you develop something that will be truly valuable and meaningful.

Before you start gathering feedback, use the questions below to play devil’s advocate when it comes to your future business.

• What holes might someone poke in my business idea?

• Why might a future customer resist purchasing my product or service? How could I address or mitigate this? 

• Have other people attempted to create this kind of product or service before? Why were they successful? Why might they have failed?

• Who do I trust that I could ask for feedback or advice?

Once you’ve answered the above questions and had some conversations with people close to you, it’s also important to hear what your future customers and clients have to say. A simple survey can help you learn more about your ideal customers and clients, understand their pain points, and verify whether they find value in your product or service.

4. Is it a reasonable business for you to get off the ground?

Before you embark on your entrepreneurial path, it’s essential to be realistic about your ability to turn your idea into a viable business. You’ll want to consider how your innate skills, talents, and past experience will guide your business forward in the early days, while also thinking about your weaknesses or gaps that will need to be filled over time. It’s also important to consider the resources and finances needed to get your business up and running.

The following questions will help you understand what you bring to your business, in addition to the support and resources that may be required over the short and long term. 

• What innate skills and abilities do I have related to entrepreneurship?

• Where are my gaps or weaknesses when it comes to entrepreneurship?

• How might I fill those gaps or weaknesses in the early days? (consider training programs, mentors, books, partnerships, online courses, etc).

• How much will it cost to get the business up and running? What avenues can I explore when it comes to funding the business?

• What additional resources or expertise might I need in the future?

5. Have you made an initial plan & answered fundamental questions?

All great businesses start with a plan, and the success of your plan is often determined by the questions you’re asking.

Your plan should help you consider various aspects of your future business, including who your ideal customers or clients are, where and how you’ll sell your product or service, how much you’ll charge, how you’ll run the business, and more. If you’re looking for an approachable way to write your business plan, Bedside Business Plan is a powerful tool to support you in creating a foundation for lasting success.

Entrepreneurship is a delicate balance of planning and execution. If you take action too early, you risk investing considerable time, money, and resources into something that doesn’t have an adequate strategic foundation in place. On the other hand, if you spend too much time planning, there won’t be enough momentum behind your idea, you could lose interest in it, and ultimately leave a great business on the table.

If you’re ready to take the first steps toward turning your idea into a business, here’s a list of ways you can take action on your business idea today.