Business Idea Filter
Income expectation filters
1. Are you confident that the idea can earn you the amount of profit you want in the next year? If the profit you want from it is zero or negative, it is also fine, you may be doing the business for other objectives, but write the amount of profit you want down (even if it is a negative amount), this is the maximum loss or minimum profit you can accept for the business.
2. Do you know anyone who will buy your product or service? If you don't know anyone, try searching for some who might or cross out the idea.
3. How many people (locally/globally) is likely to buy from you? What type of people will buy from you?
4. What is the reason they will buy from you?
5. How frequently will customers come back to you to pay for your service? How much will these people pay you for your product or service, weekly, monthly, annually?
7. Is the value of your service worth the amount you are charging?
8. Can the people who need your service afford to pay for your service? (The Adobe software is very useful to me and worth more to me than the price they are charging, but its just too expensive for me to afford it. Therefore i'm still looking around for similar software with lower pricing.)
9. Other than the price you are charging, what are the other costs associated with using your service? How do you prevent these costs from detering your customer from buying? (The printer is actually very affordable, but the toner replacement is expensive. The book is very cheap, but it takes me a long time to read it)
10. What are the benefits that customers obtained from buying your service? How do you help customers realized/obtain these benefits easily.
11. How do you make it easy for customers to reach you for payment and to receive your goods and services?
12. How do you assure your customers that your product or service is reliable?
13. Is the income for your business sufficient to cover all your business and personal expenditure as well as meet your personal savings expectation and still have excess for you to reinvest into the business to scale it?
14. Do you have a way to scale your business
If you have clear positive answers to all the above questions or you are sure that the above questions are irrelevant in filtering out your idea, proceed to the next step of filtration. Otherwise, work on the above questions or cancel out your idea and skip to the next one on the list.
A good product or service is worth nothing if it cannot be known or found by people who might be interested in it. Many businesses fail that way, make sure you are not one of them by running your idea through these marketing filters.
15. Can you pitch your product or service in one sentence? People are very impatient these days, it is very hard for search engine to find you or for word of mouth to work for you if your product or service cannot be pitch in one sentence.
16. Can the key feature of your product or service be fit into a business name and still make sense? Having a business name that tells people what you do saves explanation. Don't mistake me, you want to explain whenever you are given the chance but you won't always be given a chance.
17. Who are your customers? What do they like? Which website they go to? Where do they go to? How much money they have and where they spend their money?
18. Who are your competitors? What do they do poorly? In what ways can your business be better than your competitors? Type the keywords with which your customers may search for your product or service, then look at the competitor websites that shows up. Identify the strengths and weakness of your competitors and rate them against your own in a single chart on multiple critical dimensions that customers will also use to evaluate you and your competition. For example, the dimensions that customer may use to rate tuition services might be: years of experience of tutor, tuition fees, locality and customer reviews.