With column after column written about the business ideas, you might begin to believe that all you need to have is a foolproof idea to run a successful business. Popular business ideas don’t always succeed. Well, nothing could have been any further from the truth. Running a successful business goes way beyond just a great idea. You might be wondering why I am saying so. Well, the reason is, running a business is a complicated game and involves many related elements like scalability, overall sustainability, the location, the deliverable and many other related elements.
Here is a lowdown of some of the best business ideas that could fail or do not work as envisaged for lack of coordination or cohesiveness in execution. In fact, if you look at the business models that failed you will notice that there are certain similarities between the various alternatives. Invariably it is this particular point that led to the eventual failure of the idea. It could be anything from the inability to generate funds to the potentially low response seen for a specific idea to even a serious lack of motivation to carry the mantle forward.
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Don’t Just Let Your Passion Run the Show
When you look around some of the most business ideas and the objective behind them, you will be surprised to see how most of popular business ideas have a distinctive amount of passion associated with them. But does it mean that if you just have passion, the business would be successful? Unfortunately, that’s not the case most of the times.
Let’s take the example of the food business. A lot of us are very passionate about the food we eat; we love to cook, share and invite people over for meals. Then suddenly, we think looking at the plethora of food trucks, cafe and bistros; let’s start a restaurant or a food truck! Would that work just because you are latching on to a popular business idea? Well, the answer to it is, unfortunately, no.
As you can well imagine while the love and passion for food is one thing, creating a business model, especially successful food business model is a completely different ball game. It is an extremely risky affair and involves a lot of physical and mental labor. You have to start really early and wind up very late. If you do not have the tenacity to sustain these pressures for a sustainable period, it won’t work.
Unless you are trying out a really unique idea with sufficient resources to dig in even in the case of a loss, it is not a wise idea to invest your time and resources in this idea though it is popular.
Business Ideas That Are Commonplace
Popular business ideas don’t always click if you launch them just based on the popularity. For example, let’s say you chose the wedding planning business because it is quite popular but conducted no market research.
Let’s assume the locality where you opened your business has the capability to generate demand for 5 wedding planners and there are already 10, and you become the eleventh venture. It is needless to mention that your business would take off the way you envisaged it to be despite the immense popularity of the business idea. Apart from gauging the popular business ideas, it is also very important to consider the target audience you are catering to. If there are already too many players, it is but obvious that you will never be able to scale it up as per your plan.
It is always a good idea to look for a niche idea for which there is reasonable demand in the area that you are planning to open the business. For example, while there might have a plethora of wedding planners but not sufficient beauty salons with quality beauticians. Though that is also popular, it will have more chances to become successful in your area as it isn’t too common.
Look For Sustainable Returns in the Popular Business Ideas
Best business ideas do not always guarantee success. You have to closely analyze the kind of money that the business can generate and if the returns are in sync with the overall expenses involved. Remember you are investing a lot of time and money to set up a business and run it. If there is no money in the bargain, there is also no real reason to pursue it beyond a certain point.
You must understand that while a hobby can be pursued without really looking at returns or just propelled by the joy of pursuing it, it can’t be true for a business. That is why even before you decide to spend a penny on the business, you must sit and calculate the potential returns, the business can generate in the next 3, 5 or 10 years time. You must make some calculation about the resources you would need to sustain it and whether you are in a position to supply those if the business fails to scale up.
Additionally, it is not just sufficient that a business makes money now. You also need to analyze the long-term growth model and how much money it can hope to generate going forward.
Look For Scalability
The business ideas that do not have scalability scope are best left untouched. For example, you plan to start a retail store but have no family support, even after 10 years you might have to be happy with a single store set up only. The problem is when you scale up a business, by supposing opening more stores in close by areas, you also need dependable people to manage them. If you don’t have them, then your business will remain small and localized.
Popular business ideas cannot, therefore, be successful or revenue generating just because of their popularity or the fact that a large number of people are into it. It is important to assess some key pointers like
- Local Demand
- Market size
- Target customers
- Scalability potential
- Returns potential
Only if the business ideas confirm to these fundamental points, it will result in a successful business venture.