Think you're on to a great business idea?
Then take our simple Idea Validation Test.

Understand the important things to consider before building your business.

If you’re dreaming of starting a new business, and think that you have a winning idea, you should take the necessary time to test that it could work. A good way to do this is by researching whether there is a market (or demand) for your idea, as well as understanding the requirements to build the business.

First, briefly summarise your idea.

Be as specific as possible by describing the industry, product/service, target customer and what makes your idea unique.

Example: I want to create a healthy, takeaway-only, food business that sells affordable meals, to fitness-conscious men and women, aged 25 – 40, living in Durban. My idea is unique because our products will be based on traditional South African recipes, they will be healthy and affordable, and customers can order online.

Now, you're going to score your business idea by answering the following questions.

Now keep your idea in mind as you complete the following questions. Each answer is scored between 0 – 10. At the end of the exercise, we will total your score and explain your results.

Question 1: Does your idea solve a real problem for users?

A “real problem” is one that is faced by many people, often. Real problems leave people frustrated because of cost, need, inconvenience, difficulty or lack of options.

1. Absolutely (10)
2. I need to investigate (5)
3. Not really (0)

Question 2: How 'badly' do potential customers need your idea?

This speaks about urgency. Is there demand for your idea right now?

1. They need it right now! (10)
2. I’m not sure, I’ll need to investigate (5)
3. It will take some time to educate customers about my idea (0)

Question 3: How big is the market for your idea?

Based on your idea, think about how many people are likely to become your paying customers. Look at existing businesses and how many customers they are serving.

1. There is a huge market (10)
2. Many potential customers, but it will take time to grow demand for my idea (5)
3. Many potential customers, but it will take large investment to grow demand for my idea (0)

Question 4: How much would your customers be willing to spend on your solution?

Based on your knowledge of potential customers, are they able and willing to pay your asking price.

1. They would be willing to pay a premium/more (10)
2. Customers would need to be educated before being willing to pay more (5)
3. Potential customers are price sensitive – small changes affect their decision (0)

Question 5: How unique is your idea?

In highly competitive industries, it is important that your business is differentiated from competitors.

1. There is nothing else like it (10)
2. It exists, but not in my chosen market (5)
3. There are many similar businesses (0)

Question 6: Does the business give you the opportunity to introduce add-on products/services at a later stage?

This is known as “up-selling” and allows your business to create multiple revenue streams.

1. Yes (10)
2. I’m not sure, I’ll need to investigate (5)
3. No it doesn’t – I only imagined one way of creating revenue (0)

Question 7: How expensive is your idea to build?

Think about building the simplest version possible and what initial/ongoing costs are involved.

1. Low cost (10)
2. I’m not sure (5)
3. Expensive (0)

Question 8: With the costs in mind, do you have the money to bring your idea to life?

You will need to afford initial and ongoing costs yourself, otherwise you will need to find external funding.

1. Yes (10)
2. I can manage initially, but will need funding to complete it (5)
3. No (0)

Question 9: How long will it take to build?

Think about the simplest version of the idea possible and the resources/time required to bring it to life.

1. 3 – 6 months (10)
2. 7 – 12 months (5)
3. More than 12 months (0)

Question 10: Do you have the available time to build your idea?

You need to dedicate the time to build a business, otherwise you will need to hire someone to do this for you.

1. Full time (10)
2. Part time (5)
3. No time (0)

Question 11: Do you have skills to build your idea?

You need the right skills to building a business. Otherwise, you may need to hire someone to do this for you, or find a co-founder/partner.

1. Yes I do (10)
2. I have certain skills, but will need external help (5)
3. I only have an idea, but no way of bringing it to life (0)

Question 12: How will you deliver or sell your product/service?

It is as important to understand how you’ll distribute your product, as it is to create it.

1. Online only (10)
2. Both online and in-person (5)
3. Only in-person (0)

Question 13: How expensive is distribution?

Once you’ve built your product/service, you need to get it into the hands of customers. Consider how much it will cost to generate a sale through marketing, fulfilment or a sales team.

1. Low – low marketing costs, simple systems, few staff (10)
2. Medium – I will need to do more research (5)
3. High – High marketing costs, complex systems, many staff (0)

Question 14: How long after launching will you generate a sale?

It’s important that your business can making money as soon as possible after launching.

1. 1 – 4 months (10)
2. 5 – 8 months (5)
3. 9 – 12 months  (0)

Question 15: Once you've launched the business, how actively will you need to be involved in operations for it to be successful?

The best businesses are built on systems, automating repetitive tasks and allowing the founder to focus on more important things, like growth.

1. With the right people and systems, it can operate without me (10)
2. Only time will tell (5)
3. The business will rely heavily on me. It will take a few years to step away (0)

Time to calculate your score, and understand the results.

*Score of 120 or higher

It suggests that you’re on to a winning idea. But ideas are only the beginning. Be sure to fully understand your customer, the demand for your idea, the cheapest (yet best quality) way of bringing your idea to life. Refine the business model, know how you’ll get your first sale and market the business. If skills or time are your primary barriers to launching the business, then these can be solved quite easily by bringing in the right people. And, consider applying for funding to do so. Remember, building a business is hard work and you want to devote yourself to something with a high chance of success. PS: We recommend that you present your idea to someone objective (a mentor, advisor, or accountant) and ask them for honest feedback. The idea is only the beginning, so return to getlion to learn more. Good luck!

*Score between 90 < 120

Your score doesn’t mean that you shouldn’t pursue your idea – but it does suggest that you still need to refine your concept, business model, and do further research into the demand for your idea, or consider changing your target market, price or distribution strategy. If skills or time are your primary barriers to launching the business, then these can be solved by bringing in the right people. To do so, why not consider applying for funding? Remember, building a business is hard work and you want to devote yourself to something with a high chance of success. PS: We recommend that you present your idea to someone objective (a mentor, advisor, or accountant) and ask them for honest feedback. The idea is only the beginning, so return to getlion to learn more. Good luck!

*Score less than < 90

This score doesn’t mean that you don’t have what it takes – but it does suggest that your idea or business model may need some real work. It may be too expensive, require more time than you can afford, or fall outside of your expertise. There may not be a market for it either. Consider doing further research into the demand for your idea, or change your target market, price or distribution strategy. Make sure you’ve properly understood what it requires.

Remember, building a business is hard work and you want to devote yourself to something with a high chance of success. PS: We recommend that you present your idea to someone objective (a mentor, advisor, or accountant) and ask them for honest feedback. The idea is only the beginning, so return to getlion to learn more. Good luck!

In Summary:

Ideas are plenty and valuable, but execution is everything. Keep curious and improve your business acumen – you’re bound to eventually discover an idea (if you haven’t already done so) that will make for a successful business! #KeepRoaring!

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