How to Monetize Your Business Idea

How to Monetize Your Business Idea

How to Monetize Your Business Idea

Photo Credits: Pixabag.com
Photo Credits: Pixabag.com

 

Nowadays, a single income is an antiquated idea which may even lead to a frustrated thinking.

“Everybody knows if you have money, you shouldn’t invest it all in one stock. Everybody knows that’s a bad idea. You need to diversify there.
“But for our jobs, for how we make money, I think many of us – most of us – have one way we make money. It can be very risky.
I have come to believe, and have done a lot of research over the years, that one of the best ways that we can create real, legitimate professional stability for ourselves is by choosing to cultivate multiple income streams.
“But for our jobs, for how we make money, I think many of us – most of us – have one way we make money. It can be very risky. I’ve really come to believe, and have done a lot of research over the years, that one of the best ways that we can create real, legitimate professional stability for ourselves is by choosing to cultivate multiple income streams.
“That’s certainly true for entrepreneurs, but even for people who work inside a company, cultivating a side income stream of some sort - whether it’s having other business setup on the side, or doing a little bit of coaching or having a workshop now and then, whatever it is, doing a little bit of paid speaking - having that sideline gives you additional protection against uncertainty and also has a lot of other benefits.”

90% of  people have a business idea but don’t know where to start, or they have been working on a project for a while but don’t know how to earn money from it.

Over the past 4 years, I have interviewed few of founders and CEOs. The steps below outline the patterned framework I have observed people use to transform a business idea or side hustle.

Read Also: 10 Ways To Start A Business With Little Capital In Nigeria

6 Steps Towards Converting Your Idea To Income:

Photo Credits: Pixabag.com

I have outline the patterned framework I’ve observed people use to transform a business idea or side project into a cash flowing income stream.

The steps are sequential, but you can start at any point ( you don’t have to start at step 1, and you will often shuffle between steps).

1. Idea – Think of a thing

Coming up with the right business idea trick people. Anybody new to entrepreneurship will say it’s all about the idea. It’s not. “Ideas are just a guide of execution,” Derek Sivers, blogging entrepreneur and speaker. Sivers is just one of many seasoned founders and investors who will tell you the common mantra in the startup world:

“Ideas are worthless, achieving/execution is everything.”

Nevertheless, how do you know when you have the right business idea, or at least one worth pursuing?

The single most effective way to come up with a business idea is to solve a problem. For yourself, or someone else. It could be a personal pain (e.g., razors are a pain to shop for, or a systematic problem (e.g., I want to invest but I’m not an accredited investor), or a missing preference or convenience (e.g., why are there no shawama shops in this town?) Or An urgent assignment to be solved for student online(Freelancing) or Digital Skills. Start with solving a problem.

Also, you can be thinking about an idea for weeks, months, or even years. I read through a theiller book by Author Stephen King who said he knows he has a good idea for his next thriller when it sticks in his mind for over six months. If you’ve had an idea target for a while, it’s time to take it to the next phase.

2. Project – Create the thing
The project phase is where most of us get stuck. In this step, you bring the idea to life. Whether it’s code, carpentry, or culinary, a project is a created idea. It can take ages to materialize a product vision. Examples of projects could be an app, a book, an art piece, a service company, real estate, or an event.

For me, I design Ecommerce site, Blog, business site, freelancing, WhatsApp monetizing, launched an app, and now I’m working on an online course. I’m a project nerd though.
Whatever you choose, make sure you leverage the incredible technology available to speed up this phase. We are in the digital trend. We have to leverage legitimate income trend.

3. Test( Make The Thing Better).

In this step, your project is nearly complete and it’s time to begin putting the project into the hands of real people. This testing phase can be scary; you are finally releasing your brainchild into the public wild. But it should result in good feedback and lead to overall improvement. The end goal is called “product market fit”, something entrepreneurs and investors treasure. Product-market do happens when the right product reaches the right audience. For example, if you sell Maggi star in a town in which they don’t like using maggi star but they prefer using “know Chicken” , you will go nowhere fast. But if you sell maggi star in Northern part of Nigeria, you will do better. This is the principle of product-market is fit at work.

Similarly, your testing will help you tweak, and pivot your project as needed to find something that people want to pay you for.

4. Business Model – Charge money for the thing

Once your project is perfected through testing, it’s time to come up with a way to make money from it. Many people fumble when it comes to setting the price for their product. They charge too little. They think, this hand-knit scarf isn’t like a hand-knit Michael Folashade does, so I should charge less.

There’s no formula for setting the “right” price. However, the following two basic principles of economics will help you understand why you should charge more than you think.

  1. Scarcity

  2. Positioning

  3. Feasibility Study

Also, it’s much easier to lower your prices after launching your product than it is to higher them.

5. Growth – Get the word out about the thing

Your website is built. Your storefront is open. Your booth is set up. Your business cards are in your pocket. Now it’s time to scale. As much as creators hate to do it, this stage is all about sales and marketing. Think about the story of your product. Your story. What is something you believe in that your customers can get behind?

Tom’s shoes, All star shoes, Nibiru Shoe Starbucks, and Geico are all brands that offer common things: shoes, chicken sandwiches, coffee, and insurance. But their storytelling differentiates them from the competition. Once you figure out your business’s most compelling story, the most powerful type of marketing will flow from it: word of mouth. Word of mouth is when people understand and love the story of your product so much, they must share it with other people. The key to growth is a remarkable story.

6. Viability

Build a prototype of your product or service and show it to the audience to get their honest feedback.

For instance, if you’d like to launch an app, you can release the beta version of your software using Apple’s Test Flight.

From this, you’ll get their feedback on whether the product is useful, see if it meets people’s needs, and how much they would be willing to pay for it.

Based on this feedback, you will be able to modify your idea.

7. Demand

Conduct a survey or talk to at least 50 potential customers to establish whether they identify with the problem as you do.

In other words, find out whether the problem you’re trying to solve affects a bigger part of the market or just a small section of it.

You may have one idea, no idea, or a notebook full of them. The first step begins with clarity. So wherever you’re at, use this guide to map out next steps. Internet marketer and author Godin Seth said, “Ideas die in secret.”

See also: Six Food Business Ideas That You Can Start-Up In Nigeria

Don’t let your ideas rot in your head. And don’t abandon your projects half-baked. Use these steps to turn your idea into an income stream starting today.

Conclusion

Monetizing your business idea requires work, testing, and refining. Conduct thorough market research and draft a comprehensive business plan. Before you launch the idea, test it, and pull the resources together in the most efficient way.

The information you get will guide you through on further efforts as you turn your business idea into a successful endeavor trend.

If you don’t know where to start,  you can make use of the site Contact Page about your scenario or Make use of the below comment box, and I will respond with more specific directions.

Thank You For Visiting Explicitloaded Blog.

Leave a Reply

Your email address will not be published.