Besides conceiving an idea, the entrepreneur should also assess the resources, skills, and connections required to transform the idea into a success story. In short, the entrepreneur should correctly evaluate the commercial potential of an internet startup idea before taking the major step.
Every business begins with an idea. That idea can be a traditional business model or a unique one. No matter whatever it is, the success of a business will depend on how powerful the idea is.
Let’s explain it with an example –
In the early days of 2005, Jawed Karim, Steve Chen, and Chad Hurley launched the world’s most popular video-sharing platform, YouTube. All three, ex-employees of online payments system PayPal, developed the video-sharing website. Why? Because they experienced problems uploading a video shot at a dinner party.
The trio took out time to discuss the problem with various people and realized that most people faced similar issues. This gave them the idea of YouTube which solved the problem of ‘sharing a video’. Also not to forget, there was a sizeable market, a large target audience, who encountered the same difficulty and accepted YouTube instantly.
Read on to learn the top tricks to measure the commercial potential of an internet startup idea.
Your Idea Should be Able to Solve a Problem or Meet a Need – The Key Step to Measure Commercial Potential of an Internet Startup Idea
Customers make a purchase because they think what they are buying will satisfy their needs, fulfill their wishes, or solve their problems.
If your internet startup idea does not address a genuine need or a problem, there will be no takers.
There is an easy way and a difficult way to deal with the needs and problems of your target audience. The easy way is to present a solution to an existing problem. The difficult way is to create a need and then present a solution. However, it is not suggested to take the second route!
The commercial potential of an internet startup idea depends on the problem it attempts to provide a solution for.
Your Internet Startup Idea Needs to Take Advantage of a Market Opportunity
A winning business model creates an opportunity, or it takes advantage of a pre-existing opportunity.
Applying the right idea at the right time, and in the right place, has been the success mantra for businesses that have excelled in their respective domains.
For instance –
America’s passion for shopping, and the rise of the Internet, presented a parallel opportunity for eCommerce. This helped website eBay become a household name.
From her personal experience, Stella Ogiale, owner of Chesterfield Services, identified a vast need for home-based medical care. She launched Chesterfield Services in 1996, which is now a multi-billion dollar company providing at-home healthcare to people in the UK.
Jennifer Pardoe, the founder of plant-based food consultancy firm Zest, was fast to act on the emerging vegan eating mega-trend. This allowed her to capitalize on the £657m meat-free market before the competition became fierce.
To find out commercial potential of an internet startup idea here are few questions you should answer:-
Is your internet startup idea equipped with the right resources?
Does it stand a good chance in seizing the right moment?
Is the idea well-positioned to make the most of a new opportunity?
Answers to these questions can help you determine the commercial potential of an internet startup idea.
Create a Landing Page to Analyze the Commercial Potential Of An Internet Startup Idea
Design a promo landing page or a teaser to showcase the core idea of your internet startup. Share the landing page with your network and check the response.
Are people interested in your startup idea?
Does your idea help them solve their problems or needs?
Request visitors to leave their feedback and email addresses. The count of email subscribers will specify the number of people interested in your internet startup idea.
KickoffLabs and Launchrock have excellent tools that enable users to make stunning landing pages. To boost traffic, create a Google AdWords account, and promote your landing page via Facebook marketing campaigns.
Try Crowdfunding to Check Commercial Potential of an Internet Startup Idea
Crowdfunding brings together investors, contributors, and idea generators on a single platform. The popularity of crowdfunding has rocketed in recent times, with the likes of Indiegogo, RocketHub, and Kickstarter promoting the concept. Besides securing funds for your startup, crowdfunding provides deep insight into the commercial potential of an internet startup idea.
By using the crowdfunding route you can get a realistic estimate of how your internet startup idea is being accepted by the public. The response you get from crowdfunding platforms will help you catch the pulse of an actual marketplace. If a large number of people backs your idea, it is then easy to understand that your internet startup will rock the market.
Analyze the Drawbacks of Your Internet Startup Idea
Even the most resounding business ideas have limitations and drawbacks. To free your startup idea from flaws, you need to think long and hard about the downsides. Scrutinize the pitfalls of your idea, and then, fine-tune them to meet the needs of your target audience.
A detailed analysis of shortcoming plays a crucial role in enhancing the commercial potential of an internet startup idea. If advantages outweigh the worst scenarios, your internet startup idea is likely to succeed.
Here’s a list of the points to follow while testing the commercial potential of an internet startup idea –
- Does Your Internet Startup Idea Solve a Problem or Meet a Need?
- Does Your Internet Startup Idea Take Advantage of a Market Opportunity?
Get These Done
- Create a Landing Page
- Use Crowdfunding
- Analyze the Drawbacks of Your Internet Startup Idea
Find out Revenue Generation Ability of Your Startup Idea
The final question you need to ask yourself, is, how fast internet startup idea will be able to generate revenues.
Since the answer to this question depends on future performance and events, it is the most difficult question for wannabe entrepreneurs to answer.
You can consult a startup advisor to find an answer to this question. A startup business consultant can provide you with an unbiased estimate on the future growth prospects of your online business.
Sooner, rather than later, entrepreneurs should take the time to give this question a serious thought.
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