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Guest Post: A Simple Formula to Vet Your Business Idea - How To Quit Working
Guest Post: A Simple Formula to Vet Your Business Idea

Guest Post: A Simple Formula to Vet Your Business Idea



Do you think my idea will work?

I get that question often from aspiring entrepreneurs who enter my office for business counseling. My silent response after listening to their dream and seeing a hopeful expression is, “Sure, people will buy anything.” My mind goes back to the mid-1990s when eBay first came out and someone wanted to test its effectiveness. They offered a red pencil for sale-a plain, red pencil. It sold for $35.00!

Barbara L. Hall on how to vet a business idea

Barbara L. Hall, director of the Small Business Center at Rowan-Cabarrus Community College in Salisbury, N.C

Of course I don’t give the “sure” answer to entrepreneur hopefuls, but I have come up with an easy to understand way to determine if a business idea is worth pursuing. I say, “Ask yourself this question, ‘Will my idea save, solve, or serve?'” If the person can answer “Yes” to at least two, preferably all three, they may be on to something. I call it the critical three “S’s” of developing a business idea.

Since the fast food industry serves 50 million Americans every day and brings in $100 billion in annual revenue, obviously something is working so I’ll use that industry to show how they relate to the three S’s.

Years ago when I was a young TV news reporter in Columbus, Ohio, I did a story on the fast-food craze and talked with the top executives of McDonalds, Burger King, and Wendy’s. I got the idea after meeting Dave Thomas, founder of Wendy’s, which is headquartered in Dublin, Ohio, a suburb of Columbus. He had come by the station for a special event. I later contacted his office requesting an interview and he obliged.

After talking with him about his background and how he started the popular chain, I asked him what distinguished Wendy’s from his other top competitors. He quickly said, “QVC-quality, value and customer service.” What’s interesting is when I asked the same question to the executives of McDonald’s and Burger King, they said the exact same thing-QVC. Let’s look at the parallel to the critical three S’s.

I’ll start with value. Value represents save in the three S’s. The most popular fast food companies in the world tout that they save consumers money. Consider all the promotions about dollar menus, everyday value menus, mix and match menu deals. “A good meal at a low price,” as Thomas said, is what the fast food giants market.

Let’s look at quality. It relates to solve. What problems do the fast food chains solve? One is the age old question “What’s for dinner?” The fast food giants solve that issue by offering what they consider a quality menu, one with a taste and enough variety that everyone in the family will find something they like, especially children, who can be picky eaters. They also solve the question (or attempt to), “Is it OK for my family to eat it?” by promoting quality ingredients. You’ve heard the commercials, “Two all-beef patties, special sauce… ” and “Fresh, never frozen.” They’ve also added salads and baked potatoes as more “healthy” alternatives. They also solve the issue of consistency. People tend not to like surprises with food so the companies have a quality system of preparation and delivery that gives customers a consistent experience at any location.

Finally, there’s customer service. That’s the serve of the three S’s. The fast food giants are clear on whom they serve and they deliver customer service with that target in mind. Families with children will find a fun environment for kids-toys, special menus, even a play ground, all served up with a smile. People on the go will experience fast, efficient service so they can grab lunch and get back to work. A business must know the specific customer it will serve.

Any business idea can be put to the test of save, solve, or serve. It’s a quick way to tell whether to proceed to the next step or take the idea back to the drawing board.

Barbara L. Hall is director of the Small Business Center at Rowan-Cabarrus Community College in Salisbury N.C. She is also currently enrolled in the Master’s of Entrepreneurship Degree Program at Western Carolina University. Webmasters and other article publishers are hereby granted article reproduction permission as long as this article in its entirety, author’s information and any links remain intact. Copyright 2013 by Barbara L. Hall.

Article Source: http://EzineArticles.com/?expert=Barbara_L_Hall

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Jeff wants to help you Live More. He is the author of How to Quit Working, A Simple Plan to Quit Your Job for a Life of Freedom. He hosts a weekly show called The How to Quit Working Show that features lessons from Freedom Fanatics who quit their soul-sucking 9-5 job and created a business that lets them live a passionate life of freedom. Jeff also writes for several media outlets, including The Huffington Post, Lifehack and Elite Daily. Most of all, Jeff is a Freedom Fanatic, fiercely devoted to finding a better way to “do life”.

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