Is My Online Business Idea Viable?
6 Essential Questions - To Which Only You Have the Answers
These six essential questions outline core business concepts to guide your decisions as a solo entrepreneur starting an online business. While some questions are universally applicable across industries, others may be more specific to your unique product, service, or niche.
Q1. Does your Business Idea Solve a Question or Problem or Resolve a Struggle or Issue?
This question is best answered by considering: How does your product or service benefit your intended customer base? There are two elements to this: First, identify your customer group based on similar demographics. Second, explain how your product or service benefits them, highlighting the extent of the problem or issue it solves, and why the customer cannot address this need themselves.
Q2. Are People Currently Searching Online for Your Product or Service, Directly or Indirectly?
You might feel confident in your idea, especially after receiving enthusiastic face-to-face feedback from the public—let’s say it’s beautifully crafted arts and crafts. However, there could be a challenge ahead.
Perhaps only a small number of people actively search for such items online or, more critically, are willing to purchase them through digital platforms. But here’s something to consider. By thinking ‘directly’ or ‘indirectly’ could there be many other possibilities open to you. For example, while there may not be a huge demand for the product itself, there might be significant online interest in related areas, such as decorating ideas. This could lead to opportunities for business partnerships with companies in that space or the creation of content that aligns with popular searches, ultimately boosting visibility for your brand.
Q3. What is the level of Online Competition for Your Online Business Topic?
Following on closely from the previous question, you may have conducted a quick research and feel satisfied with the result, noting a high volume of searchers for example. However, depending on the level of these numbers, this scenario can also yield poor outcomes. As a new business entering the market, if on a low budget, you are going to need additional tools, or to be more creative capturing the attention of those audience. High competition often means higher upfront funding requirements for advertising. But don’t worry, there are solutions, as covered in my Affiliate Marketing for Beginners Guide – and the affiliate marketing element is optional.
The guide is for anyone new to the online world. It outlines in eight easily understandable steps, the challenges encountered when setting up for the first time – maybe answers to your current challenges, allowing you to take a different approach without changing your chosen business path.
I recommend you read my blog: Keyword Research for Beginners, learn more below.
Rest assured, when search volumes are high, the opportunities for success are also likely to be high: you can achieve success without needing to allocate funds for a marketing budget – though the path may be lengthier. One way will be to uncover niches with unmet needs in your field of interest or to determine if you can compete by creating your own Unique Selling Proposition (USP), read more in my post about: Importance of Keyword Research or download my free PDF guide: Keyword Research: The Beginners’ Step-by-Step Guide.
Q4. Is Your Business Idea in a Steady or Growing Market, also, Is There Scope for Innovation Now or in the Near Future?
Many products, and in some cases services, have a life cycle: Development, Introduction, Growth, Saturation, Maturity and then Decline. Surprisingly few survive the Introduction stage, the majority are in the Growth stage.
Is your planned product or service choice within the first three of these stages? Or course there are risks that come with placing all your efforts on a product or service that is in the Developing stage, but this is where the enormous success stories happen… if the produce survives! If you find a business model that is easily affordable and doesn’t prevent you pursing other opportunities, then a business at Development Stage might be a good pun! Remember, these can go on to then be rejected by the public at Introduction Stage.
It’s also important to understand that these stages are not always linear. Imagine if you could turn the clocks back a decade. You started creating content about healthy living and one of your affiliated products was the Air Fryer. That was patented back in 2010. It had a modest surge in sales about 6 years later but then just exploded in popularity 3 years after this during the pandemic. Only when the general public became more aware of a need to improve their diet, after being locked down for a while, did sales explode. Imagine begin that business owner who left their low-maintenance affiliate business running in the background of his/her portfolio of online businesses.
The main lesson here is to ensure you’re not focusing on the Mature or Declining markets without a good strategy behind this decision.
Q5. Can Your Planned Online Business Cover Costs and Still Generate Meaningful Profits?
Are you in a competitive market with low-value items, or in a niche with average-priced products and moderate competition? Have you researched the tools and costs required to operate your business on its specified platform? It’s crucial to assess the potential for profits from the outset. If this assessment is not possible before establishing the business, evaluate its viability 3-6 months post-launch. During this time, test promotions and explore ways to pivot the business (see my Guide mentioned in Question 3) to increase revenue over time.
1stOnlineBiz101.com proponent for low-cost, low-risk businesses, allowing you to explore and learn about building online businesses without worrying about whether you have the financial resources to start or sustain the business. Read More about the aims of this website.
Q6. Are you Working on Your Business while juggling other commitments, particularly a full-time job?
If your planned online business relies on your physical presence, such as needing to respond promptly to potential customers, you may be setting yourself up for failure. I plan to release a post about Passive Income shortly, discussing the importance of these business types for individuals setting up a business with full-time commitments. I will also address challenges you might encounter when expanding your business.