How to Test a Business Idea
I have a couple of questions regarding and online start-up idea…
If you have an idea for an online start-up, where should you go to see if others (influential people not just friends) think it is a viable (money making) option too?
Where would you begin to look for investors if this is your first idea you would like to bring to fruition?
How do you draw in investors in order to fund this idea while it is in infancy?
First, 90% of business ideas are terrible. To test a business idea, you can ask almost anyone who has had a business before. Most business ideas are so bad that you don’t need a special person to give you feedback – lots of people can do it. (This is true for my ideas, too!)
When no one you know can tell you big objections to the idea you have then it’s time to pitch people you don’t know. Most entrepreneurs will field and email that says, “Hi, I’m thinking of doing [business idea in three sentences.] Does it sound like a good idea to you?” Entrepreneurs love evaluating business ideas. They will probably respond to the email as long as it’s a short email.
When people you don’t know are telling you it’s a good idea, then pitch investors. The first one you pitch to will probably kill the idea. That’s okay. it’s a process. Then you start over. This is normal for an entrepreneur.
The most important thing is that you should tell the idea to anyone who will listen. The more feedback you get the more you know about your company. If you are afraid someone will steal your idea then it’s probably not a great idea. You want to have an idea that you can implement better than other people — that’s your barrier to entry. And every fundable business has a barrier to entry.
Penelope