Can This Idea Achieve Success?

How to assess if my business idea can succeed or not?

Answer:

It is very normal for a person to be very excited and confident of his/her own business idea. Maybe that idea can indeed be very successful, even when others gave contradicting views.

However, to reduce the risk of pain and sufferings in the future, it is better if the idea is evaluated throughly and objectively by the owner.

Every business idea can be estimated (roughly) to be successful or not, by answering the following questions objectively:

1. What am I offering and who are my target customer?

If you still cannot explain in simple terms what are you offering, and there are no specific target markets or target customers - do not start the business!

2. Why the target customers need what I offer?

What are the benefits of your products or services to them - emotionally, physically, financially, time and so on? Note that customers buy based on emotion, and rationalise using logic.

3. Why do they buy from me instead from other competitors?

What advantages, uniqueness or differences of your products and services? If you say the best taste cooking, ensure that is objectively and independently tested - not just based on comments from your parents.

4. Can I arrange for the required team, capital, strategies, processes and other resources needed to start and operate the business?

Great ideas can also fail if the implementation is haywire.

5. Can Sales exceed Costs?

Not necessarily you make immediate profits. But very important to ensure adequate cashflow for the operation of business.

Question (1) to (3) are the fundamental questions! If the answers are positive, then the business idea can be developed further. If the answers are negative, then the business idea needs to be thought through again.

Profitable Business

What business can be profitable?

Answer:

If we look around, there are all types of businesses which can make profit. Housewife at home, providing translation services. Company executives, producing cakes in their spare time. Company that manufactures zip head - only the zipper head, the rest of the zipper manufactured by others.

There are glamorous businesses, appearing in the media everyday like celebrities. Or businesses that deliver their products and services quietly behind the scene, known only to their clients. There are businesses that appears dusty and dirty. All types of businesses can be profitable. ALLAH swt opens wide the doors of sustenance!

We define Profits as Total Sales exceeding Total Costs (Profit = Sales - Cost).

First, the business must generate sales! If you do business because you want to be your own boss, then don't do business. Because in business, the biggest boss is the customer - not owner of the business. If the owner acts like a boss infront of the customer, very high chances no sales.

Second, run your business with optimal costs. If cost is too low, the quality may be crappy (no sales). If cost is too high, the price may be rejected by customers (also no sales).

Third, the Total Sales must be more than the Total Costs (ie direct and indirect costs).

Welcome to "A'SAS-QnA"

Assalamu'alaikum Warahmatullah and Welcome!

"A'SAS-QnA" discusses questions on Business skills, Thinking skills, Communication skills, Working skills and Industry skills necessary to achieve success and sustainable success.

QnA in this blog are related to topics outlined in "A'SAS Competencies", questions raised in training workshops and emails sent to us.

Please share your questions, experience and ideas in the comments box, or email them to azmi65@gmail.com. May we benefit from the mutual enrichment.

Work on Solutions, not problems!

Best Wishes!

[ note - this blog is updated every Tuesday and Friday, when possible ]
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