At the heart of every successful business is a functional idea that the entrepreneur has boldly set out to make a reality. You too may have gained exceptional insight and expertise through your work experience, professional skills, studies, or hobbies which could also be useful to others.
Before committing fully to a business venture, it is worth considering and testing the idea. The Enterprise Agencies are particularly helpful in this regard. They are partners of Varma that promote the creation of sustainable business activities in Finland and offer free advice on refining business ideas and starting a business.
Ilona Ukkonen, a business advisor at the Enterprise Agency, emphasizes that open-mindedness and the ability to respond to changing customer needs are essential qualities for both existing businesses and those planning to start a business.
– Often, you kind of fall in love with your own business idea because it inspires and energizes you. However, the next steps are crucial – attitude, motivation and a willingness to learn are the most essential tools for turning your idea into reality. You need to be curious to see how the idea begins to take shape and change when it encounters customers and information starts to accumulate. For a business idea to develop in the right direction, it is also good to look at it a little more objectively and test it as quickly as possible, says Ukkonen.
How do you do that? Here are Ukkonen's tips for testing a business idea.
1. Gather information to support your business idea
– A business idea is refined through knowledge and action. Knowledge comes in many forms; it is generated through experimenting and discussions with other people. It is both visible and silent and can be found through active work. In addition to search results, news articles and literature, knowledge can be accumulated by observing the target group and asking potential customers questions, Ukkonen lists.
If you have no previous experience in the field of your business idea, one option is to explore the field through a work trial or internship. This will allow you to observe and learn how things work in practice within the field. You can also purchase an idea, as many successful companies are looking for someone to take over.
– Numerical data is also needed fairly quickly, as the refinement of the idea should be based on facts and figures. There is plenty of statistical data available. For example, there are barometers, industry reports and theses, although source criticism must of course be taken into account. The industry can also be studied numerically, for example, from financial statements, which are public for limited companies. Healthy curiosity and observation skills are good qualities for an entrepreneur already at the idea development stage.
2. Look at your business idea from the customer’s perspective
One of the most important building blocks of a good business idea is the ability to see who the customer is, what they want to achieve, what their everyday life is like, and what could be useful to them. So always look at your business idea from the perspective of the customer and their needs.
– To be successful, a product or service must be something that customers are willing to pay for. It is also worth considering the competitive situation in the industry. Some industries are more competitive than others, and success in them requires greater differentiation. Think about what you can offer that is different and better than others, so that customers will notice the difference.
3. Test your business idea on the Idea Button service
The free Idea Button service provided by the Enterprise Agencies allows you to test your idea with a business advisor in your area as soon as you come up with one. The website is open 24/7 and asks you to answer three fundamental questions about your business:
- What problem or specific need have you noticed?
- Who or what kind of people have this problem or need?
- What is your solution to the problem or need?
Starting a business is easy these days – according to Ukkonen, the challenge often lies in how much time and money it takes before demand grows sufficiently and aligns with the business objectives. Discussing the idea with an outsider who is familiar with business matters helps to develop it in the right direction and saves time and resources when starting a business.
– Although independent information retrieval has become easier nowadays, it is still possible that essential information on entrepreneurship cannot be found easily. For example, if you use a search engine to find out what percentage of ownership a new partner in a company needs to have to apply for a start-up grant, the information may not come up immediately. You can ask business advisers about this piece of information found in the legislation, among many other things. So, it's a good idea to get in touch with us. We can answer all your questions, and you'll also have the support of our network of experts, Ukkonen encourages.
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