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How to Know If Your Business Idea Is Profitable

Will your business be profitable? Let’s get started.

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Here is the assessment you’ll need to know if your idea is profitable. This will help you figure out where you should be putting your time and energy. This will make sure you start the right business for you.

1) PROBLEM

Does your idea solve a problem in the world? Can you explain the idea in simple terms to a potential client? This is where you absolutely have to talk to potential clients and interview them and ask them what keeps them up at night and what their challenges are. Don’t make this about you. It’s not about providing a product you think YOU think your market needs. Solve a problem that your ideal client has.
  • Does your idea solve a problem in the world?
  • Can you explain the idea in simple terms to a potential client?
  • Do you know what keeps your ideal client up at night?
  • Have you surveyed potential clients?
  • Have you interviewed potential clients?

2) PAYMENT

Will people pay for you to solve their problem? Have you tested your idea on your ideal market? Are you set apart from the competition? In order to start and grow a business you have to be crystal clear how your business will make money and that your clients will pay for it. This is as simple as testing it. Put a paypal link up and ask someone to buy your product. Even if you haven’t yet created it, say it will be available next month. Get a sale and make it happen. I told you I sold my first course before it was even available yet. That was my way of testing this part of the assessment. Someone bought it so it clarified that there was a market need and people would pay for my services so I didn’t waste time actually creating the product. This may sound scary, but trust me the adrenaline will push you through creating your product or service after you make that first sale.
  • Will people pay for you to solve their problem?
  • Have you tested your idea on your ideal market?
  • Have you analyzed the strengths and weaknesses of your competition?
  • Have you sold a “beta” version of your product or service yet?
  • Have you researched the pricing and offerings of your competitors to see what could be done better?

3) PEOPLE

Is there a large market for your product or service? Who is your ideal client? This is where you absolutely must create a client avatar. You want to know who your ideal client is, what she or he loves doing, how old she is, what education she has, what job she has, what she does in her spare time, what books he or she reads. You want to know his or her needs and frustrations, goals and desires. I am not kidding you that I want you to visualize your ideal client. Name this person and write a whole paragraph about him or her and make them real! If you have already had clients in your business, this might be a real person that you visualize before you write blog posts.
  • Is there a large market for your product or service?
  • Do you know your ideal client avatar?
  • Are you in forums and communities with your ideal client?
  • Do you have a community to support you to build your business?
  • Do you have a list of current and future hiring needs?

4) PASSION

I am not all about making money the focus in your business. It’s important of course that your business is profitable but you need passion to get you through the tough times. Are you passionate about your business idea? What is your why and reason for growing a business? This is important because this is how you will brand your business and your passion is what will make you stand out in the market and I know many of you are worried about all your competition out there. Whether it’s a product or a service, your story and passion will add to your brand no matter what you are selling. Your clients want to know, like and trust you and your company. That’s who they are buying from. So if they can see your passion shine through in what you are selling, order filled. (My dad’s a day trader and I grew up hearing that sound over and over again).
  • Are you passionate about your business idea?
  • Do you know why you want to start and grow a business?
  • Are you excited about the future vision of your business?
  • Will your business idea help you get closer to you living your ideal workday?
  • Do you know your strengths and interests? Do you know what you do best?
So, just to review, to have a profitable business you need to have four parts of this assessment completed. You need to have a service or product that solves a problem, you need to have a customer that will pay you to solve the problem, you need to know who your ideal client is and have your ideal client avatar crystal clear in your mind. And finally, you need to be passionate about the idea.

Create an offer:

Here’s exactly how we have learned about creating an irresistible offer. Wouldn’t it be helpful to know how to create an offer that sells over and over again? When you apply these strategies, you’ll stand out from others. So let’s dive into creating your offer:

Here are the five things you need to have in your offer to create an offer that sells itself:

1) You need a deadline or a reason for the customer to buy now.
Maybe it’s discounted, doors are closing or they are going to miss out on something. There is some form of scarcity. Let’s talk about what we are doing right now. You joined this call tonight and probably CRP because there was a deadline right? There was a reason to join because we were starting on a specified date and you didn’t want to miss out. What other things have you purchased because of a sale or deadline? I’m sure there are plenty of examples of this in your own life, right? Our Black Friday sale right now is going excellent because of the deadline.
2) You need an offer that touches on what is missing in your client’s life.
Your offer needs to point to the problem and that something is missing or lacking. They are in pain over something and you’ve identified what keeps them up at night through your surveys and interviews with ideal clients. Your offer needs to be focused in on this. It’s not about what is included in your product and all the fancy features as much as it is about how your offer solves their problem.
3) Your offer needs to have hope.
You need to give your customer hope that your product or service will fix the problem. They need to breathe a sigh a relief when buying and be excited that your product or service will fix their problem. There is opportunity. They can reach their goals and dreams with your solution.
4) You need your offer to have social proof.
The customer needs to see that this has worked for other people and can work for them. And if you are worried about getting social proof just starting a business, don’t worry!! I always recommend volunteering your services for free in exchange for testimonials or referrals. Free services is not something that should hold you back or you should feel bad about at all. My first client was my friend and my first testimonials were in exchange for free services and products. Then, once I knew my offer got results and I was more confident in my system and processes, I started charging for it. This will allow you to quickly build your social proof either by having them write a testimonial or even better, interview them or ask them to share their feedback and results on video.
5) You need trust.
They need to trust you and your company in order to know that you are going to deliver on your promises to make their problem go away. Here’s the key with trust: Ideally the trust has already been established way before they even see the offer to purchase something but we will cover that soon.

How I created my first online course:

1) Found a hungry audience through surveys, interviews
2) Created a name and title: Get Unstuck System
3) Created a system with 7 steps that spelled out Unstuck – Uncover your personality, nail your mission, uncover yo, kick it into high gear with networking
4) Create an outline
5) Created a sales page
6) Pre-sell and engage
7) Co-create and deliver
8) Wow them
9) Upsell

Hi, I'm Anna!

I’ll help you create a career strategy and plan so you can finally have a job or business you love that supports the life you really want.

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