A business idea, and a profitable business idea, are two very different things. The former is something we mull on late at night whilst in bed. The latter is something we can actually put into action after putting a plan together. When you consider these two columns, it becomes very clear just how much research you’ll have to do before you even think about starting your own business. It might not be rocket science, but it’s not the easiest thing in the world either. Here are expert top picks for how to identify a profitable business idea.

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Have You Seen the Interest Yourself?

Witnessing interest in your business idea is a good first sign. However, you’ll need to note multiple instances that will help fan the flames for your company’s formation. A few comments from friends and family is one thing, but taking your idea to a focus group and getting fully in-depth, anonymised feedback is far more productive. Of course, this kind of research will be pricier than simply asking around your own social group, but it’ll give you far more constructive criticism and insight during the early stages of building your idea. 

Offset the Startup Costs

It’s going to cost you to register company name, get started as a seller, and set up a website, as well as extras like hiring a van from https://hirefleet.co.uk/, for example, and these are costs you’ll need to offset with the profit you’ll soon be making. If it takes a long time for those profits to flow in, these initial costs won’t be worth it. Even a website that costs £10 monthly is going to soon lower your profit line if there’s nothing to hold it up! Consider not only how profitable your business idea could be, but how long it’ll take to be profitable too. 

Review a Few Case Studies

When it comes to taking an idea into the real world, you’ll want to follow the footsteps of those who have done it before. As such, you’ll find it beneficial to review a few case studies  before you get started. What did these companies do that worked? What took them from strength to strength? How long did it take to reach that profit margin they’d always dreamed of? Get online and find case studies relating to your sector and/or similar products and be sure to note down the little details. 

Think About What Investors Want

Finally, follow the money. Where is it going to come from, and how are you going to secure it? Because funding your business idea is going to be the very first challenge you come up against. Being prepared for it means thinking like an investor, and taking a ruthless approach to evaluating your idea. Could it impress in a boardroom meeting? Could you convince someone with all the capital to hand some over based on facts and figures? Put your business plan together with this in mind. 

Profitable business ideas don’t happen often. Make sure yours is treated as seriously as it deserves.