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5 Unusual Tactics to Test the Profitability of Your Small Business Ideas
- John Ting Chan
- February 1, 2021
Searching for small business ideas? Do you know if your idea will be profitable? Use these 5 tactics to test if your small business ideas can be profitable.
The shortest distance between two points is a straight line.
The shortest path to success is knowing exactly what to do and when to do it.
How Do You Know Your Small Business Ideas are Profitable or Not?
Searching for small business ideas? Just starting a business? Or perhaps you’ve already started your business. A key question that all small business owners have in their mind is whether their business will be profitable or not. But how do you know with confidence, even from the start, that your business will be a success or not?
How do you find small business ideas that you can guarantee will be a success even before you start your business?
How do you avoid wasting time, energy and money picking the wrong business ideas or niches?
How do you know if your business will succeed and actually make you money? And I’m not talking about pocket change. I’m talking about real money that could change your life.
How do you pick and focus on just one idea when you have dozens of opportunities in front of you and all of them seem exciting and attractive?
How do you pick a niche that fits your personality, passions, and potential? And how can you turn your passion into profits?
How do you generate new small business ideas when you are drawing a blank?
How do you know if the niche you picked has sufficient demand to be a success? Is the market too big, where you’d get lost in the crowd? Or is it too small where there’s virtually no traffic?
How do you stay focused and drown out the distractions? How do you ignore the so-called gurus that are coming up with new tricks and scams and stay focused on your business alone?
And very importantly, how do you get rid of that feeling of fear and uncertainty and take a leap of faith and launch your small business idea today?
Have No Fear. There’s Help with the Market Activation Framework.
If any of those questions sound familiar to you, then have no fear. You are not alone. Millions of entrepreneurs start businesses every year. And all of them have those same burning questions.
The only way you can answer those questions with any degree of certainty is to have a proven system that can test your business idea and tell you if your idea has the potential to be a success or not.
Introducing the Market Activation Framework. This is a system that helps you generate business ideas, test those ideas for potential success, choose the most promising idea, find your market, come up with an outstanding product and set up a revenue structure that can make you the most profits.
The proof is really in the pudding. You have to test your business idea. There are 5 areas you want to look at when testing your business idea. With the Market Activation Framework we make it easy as 1, 2, 3 (literally).
Here are the five tactics you can use to test the profitability potential of your business idea.
The proof is really in the pudding. You have to test your business idea. There are 5 areas you want to look at when testing your business idea. With the Market Activation Framework we make it easy as 1, 2, 3 (literally).
Here are the five tactics you can use to test the profitability potential of your business idea.
Business Idea Test #1: Level of Demand Test
For small business ideas to succeed there must be sufficient demand for the products or services that the business has to offer. Without demand your business would be a complete failure. There are ways to determine the potential demand for your business idea even before you actually start your business.
Firstly, you need to identify the core keyword or keywords for your business and see determine the total monthly average searches for these keywords. I generally suggest that with 1 to 5 five keywords, you should be getting no less than 20,000 average monthly searches.
Secondly, to test the potential demand of your business idea see how much traffic the top competing website is getting on average each month. My general rule of thumb is 5,000 average monthly visitors for your combined core keywords.
Business Idea Test #2: Quality and Type of Demand Test
To test the potential of your small business ideas you must check the level of demand. However, you also want to ensure that you have the right quality and type of demand too.
You need to determine if demand for your products or small business ideas is growing, stable or declining. If it’s growing or stable, then you’re good to go. If it’s declining then you want to be very cautious as you can be out of business in the next few years.
There are other types of demand too that you want to avoid. We go into detail in this other article.
Business Idea Test #3: Market ‘Location’ Test
Location, location, location! The location of a business is critically important for its success.
Now, you’re probably wondering, “What does location have to do with a business that mainly operates online or a business whose main marketing tool is the internet? Location is just as important for an online business as it is for an offline, brick and mortar business.
Location (offline as well as online) is all about reaching your customers where they are. Let’s say you want to set up a restaurant, you’d choose a location that’s either near a busy business district where there are lots of offices and business people moving in and out during the week. Or you’d choose a location that’s near a thriving neighbourhood so you can cater to families.
Similarly, in the online world you have to reach your customers where they are. Where do they spend their time? Where do they hang out online? Is it Facebook, LikedIn? Where exactly?
A Niche is ultimately built on people. It’s a group of people with similar likes and interests. Wherever these people gather that is where you want to focus your marketing efforts. If you can’t find your market online, then how will you be able to sell to them. Small business ideas with hard to find markets online should be avoided.
In the Market Activation Framework Masterclass we show you exactly where and how to find your market using three strategies.
Business Idea Test #4: Competitive Analysis
Your business does not operate in a vacuum. It is not isolated from other businesses operating in your niche. When you’re trying to come up with small business ideas, you want to check out the level of competition. A telltale sign that your business idea might not be profitable is if you find one out of three possible competition scenarios.
Firstly, you encounter no competition. When you come up with an idea and see that there is no competition, chances are that there’s no competition for a reason. It’s a bad idea. No one is making money in that niche.
Another key indicator that it’s a poor idea is if there’s too much competition. When you have to compete with too many other businesses in your niche, you’ll struggle and there is a high possibility of failure. Even more so as you are a new business start-up.
The third competition indicator is if there are a few competitive giants in your niche. Imagine coming out with a new search engine. You’d be competing with Google and Bing. This will be a difficult task for a small business with little or no money.
The Market Activation Framework shows you 5 different competition tests to carry out for your business idea
Discover How to Find Profitable Niches and Winning Business Ideas
Get the FREE Market Activation Blueprint Now!
Business Idea Test #5: Capacity Test
Many people starting a business often say, “If others can do it so can I.” Really? You need to know if you have the capacity to make your business a success or not. You may have the capacity for success in some other niche or with some other business idea. But do you have the capacity for your current business idea?
Does your niche have Digital and Content Capacity? Do you have the tools, talent and technology to bring your product to the market? Are you able to become an authority in the niche you’ve selected? Can your product or service be researched, purchased or consumed online? Can you create sufficient content around your niche or business idea? We’ll be helping you answer all of these questions in the 5th Test of the Market Activation Framework.
Conclusion - Take the Guesswork Out of Your Decision Making
So there you have it, 5 tests to determine if your small business ideas can be a success or not using the Market Activation Framework.
Success is really up to you, but getting it right even before you launch your business is a big help.
The shortest distance between two points is a straight line. Often when starting a business most people are figuring things out and seldomly take a straight path to success. By carrying out these five tests you take the guesswork out of your decision-making and you can feel comfortable to launch or to drop any of your small business ideas because you have a system to guide you.
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