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Business Ideas Write For Us

Business Ideas Write For Us

A successful business idea addresses a real market want, offers a unique value proposition, and has the potential for scalability and profitability. It must be practical and achievable with available resources and adaptable to market changes.

As we will see, small business ideas are just the first step in a long series of considerations for developing a successful business. To get there, you need to evaluate not only the potential of your idea, but also your potential to put it into action.

How Profitable is your Business Idea?

Every business idea must have the potential to be profitable to make it worthwhile for you. But profitability is a little more complicated than simply ensuring your business stays in the black after subtracting your total expenses from your total revenue.

The good news is that there are many levers you can pull to increase the profitability of your new business. You could:

  • Increase your price. (This may seem obvious, but a solid pricing strategy is crucial to creating a sustainable business model.)
  • Bundle multiple products to increase each customer’s average order value.
  • Sell it wholesale to other retailers.
  • Convince your previous customers to make repeat purchases. Marketing to existing customers is much more cost-effective.
  • Offer a subscription to encourage more repeat orders.
  • Expand your offering with new, more profitable products or services that you can sell to the same audience.

When Evaluating the Viability of your Business Plan, you must be aware of the Interaction of the Following Variables:

  • Breakeven. Your breakeven point is the number of products or services you need to sell to at least cover your costs, such as storage and inventory. You can calculate it using the following formula: Fixed Cost / (Average Price – Variable Cost). You can also use this template.
  • Repeat purchase price. What is the probability that a customer will buy your product again? If low, will one or two transactions generate enough revenue to sustain business success?
  • Customer lifetime value. How much profit do you expect from a typical customer’s overall relationship with you? The more money the average customer spends over time, the stronger the foundation of your business.
  • Allowable costs for customer acquisition. How much can you reasonably pay to get a client? The higher a customer’s lifetime value, the more you can spend on acquiring new customers and accept less (or no) profit on the first order.

A good business idea should allow you to get much more value from your customer base than you pay for it.

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