So, you’ve got a business idea. Maybe it’s a unique business idea you’ve been brainstorming for months, or perhaps it just popped into your head during a coffee break. Either way, you’re wondering: Is this really something that can make money on the side, or is it just wishful thinking?
Before you invest time and money, it’s crucial to check if your small business idea is actually viable. Whether you’re looking for side hustles to make money, planning an Etsy shop, or launching a service-based business, these five steps will help you figure out if your idea has real potential.
1. Does your business idea solve a real problem?
Successful businesses, big or small, exist because they address a need. Ask yourself:
- What problem does my business idea solve?
- Who struggles with this problem?
- Are people currently paying for a similar solution?
For example, many female entrepreneurs have built profitable businesses by offering time-saving services for busy parents, such as meal prep plans or home organisation consulting. These ideas work because they make life easier for their customers.
Action step: Write down three problems your idea solves. If you struggle to think of any, your idea may need tweaking.
2. Is there a market for it? (And more importantly, are people willing to pay?)
Even the best small business idea won’t work if there’s no demand. Here’s how to check:
- Google Trends: Search for keywords related to your industry to see if interest is growing.
- Competitor research: If others are making money with a similar idea, that’s a good sign! Competition isn’t a bad thing—it can actually be beneficial.
- Surveys & conversations: Ask potential customers if they would actually pay for your service or product.
For instance, if you’re looking for Etsy store ideas, see what’s trending on Etsy. Handmade pet accessories? Digital planners? If people are already buying similar products, that means there’s demand.
Action step: Find at least three businesses offering something similar and study how they market themselves.
3. Test before you invest (start small!)
Rather than diving in headfirst, start with a Minimum Viable Product (MVP)—a simple version of your business that lets you gauge interest without big expenses. Ways to test:
- Create a landing page and see if people sign up.
- Offer a beta version to a small audience.
- Sell a few products before producing large batches.
For example, many side gigs start with a small Etsy shop. Instead of spending thousands on inventory, you can list a handful of handmade items, digital downloads, or print-on-demand products. If they sell, great! If not, tweak and try again.
Action step: Pick one low-cost way to test your idea this week.
4. Will it actually make money?
Having a little business idea is exciting, but it also needs to be profitable. Run these numbers:
- Costs: How much does it take to create/deliver your product or service?
- Pricing: What will people realistically pay?
- Profitability: Will you actually make money after expenses?
Let’s say your idea is to offer personalised gifts. If materials and shipping cost $10 per item, but customers are only willing to pay $12, your margins are too small. But if you can sell them for $25, it’s a different story.
Action step: Calculate your estimated costs vs. potential revenue.
5. Get feedback & be ready to adapt
No idea is perfect from the start. The key is to launch quickly, gather feedback, and adjust. Here’s how:
- Ask real customers (not just family!) for honest feedback.
- Monitor what people love, complain about, or suggest.
- Be willing to tweak your product, pricing, or marketing.
Many great businesses started as something else. Instagram was once a check-in app, and Slack was a gaming tool! If your first attempt doesn’t work, pivot rather than quit. Pivoting aka changing directions is just finding a better way to make your business work based on what you’ve learned!
Action step: Ask at least five potential customers for their honest thoughts.
Conclusion: take action now!
If your idea ticks all the boxes—solving a problem, having market demand, being affordable to start, and having profit potential—you’re on the right track! If not, don’t get discouraged. Adjust, refine, and test again.
🚀 Your business could be the next big success story—so start testing today!