How to test, formulate and protect your idea
What is a good idea?
There is no blueprint for what constitutes a good idea, and the only thing that can validate whether or not the idea is any good is the customers.
A good business idea could be finding a new way in which to sell or distribute, discovering a new target group or creating a new customer experience.
It doesn’t need to be innovative and revolutionary. The common denominator is that you solve a problem or meet a need, and that someone is willing to pay for it.
Does your idea solve a problem?
When you try to find out whether your idea is good, you might start with the problem you’re solving.
Ask yourself the following questions:
- How often does the problem occur?
- How intense is the problem for the people it affects?
- Who are you solving the problem for?
- How many people have this problem?
These questions and the answers you arrive at will give you an indication of the scope and need for your idea.
What is the core of your idea?
To clarify this, you can ask yourself these questions to check:
Who are you going to sell to?
- Who is the actual target group for what you’re selling and how big is it?
At what price?
- The price is often decisive for whether someone chooses to buy a product. At this stage, it’s a good idea to make up your mind about how you’re going to price your product.
Does the customer want what you’re selling?
- You should find out as early as possible whether the target group actually wants what you’re going to sell. Perhaps small changes are needed to increase the value of your idea. The most important thing here is to test it.
Have you tested your idea?
Is your idea something people need and are willing to pay for? If you can you, should test out your idea.
Examples of this could be:
- Questionnaires
- Focus groups
- Taste tests
- Trial customers
- Pop-up shops
- Experts
- Crowdfunding
- Campaigns
- Events, open evenings or launch parties
- Facebook groups.
The idea here is to investigate whether there is an interest in your idea, and whether you’re reaching your desired target group.
What is a business plan?
A business plan organises your idea. It should outline how the business will be run, how much and how you will obtain, earn and invest money and much more.
A business plan is more than a plan for banks, partners and investors, it should be a management document for you and the business.
What should a business plan include?
Your business plan should include the following:
- Business idea
- Business model
- Market
- Finances
- Financing
- Work schedule
- Organisation.
Download the business plan template at Altinn:
Business Model Canvas
The Osterwalder Business Model Canvas (BMC) is a user-friendly approach to drawing up a business plan. The model consists of different sections that help you identify your customers, what your core idea is, how to capitalise on it and how you will reach out to customers.