Is your new business idea good?

Tips from Iban Wallet.

Is your new business idea good?

It is safe to say that 2020 will definitely be a year to remember. It”s hard to think back and find in recent history of a time when the lives of so many changed so fast, so drastically, and with such global impacts.

With news of possible vaccination spreading cautious hope for the first quarter of 2021, the matter of economic recovery gains an increasing importance. Such recovery, for many, can have business ownership at its center, either with a new venture or an existing one. For those wishing to join the ranks of self-employed individuals (who represent 14% of employed persons across the EU), Iban Wallet can offer some insight.

While starting a business can be both lucrative and fulfilling, there are a few pitfalls that need to be taken into consideration, and it all starts with an idea.

Here lies that first central question: how does one know theirs is a good business idea?

The first thing to be considered from the start is whether anyone would be interested in what the business has to sell.

It may seem strange to think that someone could go to market with a service or product that generates no interest.

The truth, however, is that according to a study from CB Insights, lack of market need is the number one reason why startups fail, representing the main reason for 42% of respondents.

Take Iban Wallet”s case as an example. For years many people have been faced with low-interest rates on their money, making it necessary for them to look beyond their usual choices. That meant many were first considering investing for the first time.

By making their experience as easy and simple as possible, these people were – and are – able to get more from their money without it being necessary to dive into complicated analysis. In doing so, the financial marketplace contributes to the democratization of investments, opening its access to an underserved market.

Surely, it addressed an existent and concrete need instead of trying to create one.

These needs, however, are not set in stone. As the world changes and evolves, so do the people each business aims to serve.

Some changes are faster and/or deeper than others, but virtually no one remains exactly the same person as the years go by. After all, it wouldn”t make much sense to assume an old friend you haven”t seen in 20 years to still be as interested in skateboarding as they were during their college years.

The challenge then is to understand how to keep serving an audience. And for that purpose, listening to customers is a continuous process, not a one-time event.

Ignoring customers lands number 9 why startups fail, according to the study referred to above. Just take a look at the post-mortem from VoterTide:

“We didn”t spend enough time talking with customers and were rolling out features that I thought were great, but we didn”t gather enough input from clients. We didn”t realize it until it was too late. It”s easy to get tricked into thinking your thing is cool. You have to pay attention to your customers and adapt to their needs.”

Different conditions ask for different solutions. In Iban Wallet”s case, the pandemic meant that people were less likely to commit to products with longer terms, even with the perspective of more appealing projected interest rates.

The solution? Create new offerings with shorter terms to enable more people to aim for higher returns than those available through the Iban Account, which has no term at all. So while 1 year may seem too wide of a timeframe, 30, 90 and 180 day-terms for these products can be more within their reach.

Finally, the entrepreneur must see it that money can be made in serving customers. Remember that it is only a business if it makes money – otherwise it”s a hobby.

It”s not a matter of being greedy or just financially focused. Because if a business doesnt make money, it will eventually run out, unable to continue serving its customers.

This is why it is so important to find ways to put your business”s money into work. Fortunately, businesses are also welcome at Iban Wallet, enabling users to separate their personal and professional finances. You can click here to know all about it.

Iban is an online marketplace that offers investment opportunities at a projected interest rate derived from investment in loans from various lenders

Kontakt
Iban Wallet
Sigrid Arteaga
Christburgerstr. 23
10405 Berlin
01703432086
pr@ibanwallet.com
http://www.ibanwallet.com