Business Ideas for Africa: How Do I know My Business Idea is Good?
Is my business Idea good?
I have asked myself this question. I guess it's a question that's on every young entrepreneur’s mind, trying to understand if they should take a leap of faith.
Fact is, there is no satisfactory answer this question. A good idea by any one’s judgement may end up being a bad business idea, when you launch your product or service.
For many young entrepreneurs, there are a few things you can do as you take the lead of faith and startup your business venture. Start by doing a little exercise in business modelling. Your exercise will involve creating a snapshot of your future business.
Create a Business Model Canvas
To do this exercise, will need just a few things:
Pen or Pencil
If you have internet access, you could use online tools. Many of these tools are available for use, free of charge. You may need to open up an account. There are also tons of apps that offer these services too. In the most cases, these tools are very intuitive, making first time use very easy.
Before you start, you may want to understand why you have to do this?
Most Startup entrepreneurs and entrepreneurship universities have adopted the lean Canvas as the methodology to use is answering the question whether an idea maybe good for the target audience. The lean canvas, which has been adapted by Ash Maurya, from the original Business Model Canvas by Alexander Osterwalder.
The Lean Canvas provides a concise and ideal alternative to a business plan. It can be created within minutes and would provide you with a snapshot of your idea. It's quite actionable and gets you focused on the key aspects that will define the foundations of your business at the very start. With the lean canvas, you can focus on the problem(s) you want to solve, your proposed solution(s), key metrics and competitive advantages, how you are going to make money and how you are going to spend the money etc.
I have included a link to download a short description of the lean canvas at the end of this article. and how to use it by Ash Maurya on how to go about creating your. As you create your canvas, note that some of the items may change over time. To keep track of those changes, its a good practice to always create a new version of your canvas, when you make changes. For example, you start off with version 1.0 and after talking with your target clients, you realise that you need to adapt your solution. Here, you would ideally create a new version of your canvas, say 1.1.
Ready to start creating your first Canvas?