File: Participants at Vanguard Economic Forum Series on MSMEs

By Grace Agada

Wealth and freedom are the two most important economic goals in life. A profitable business idea has the potentials for making you create wealth.

When you want to create wealth or achieve financial freedom, one of the things you must never do is depend on a vanishing income. A vanishing income is any income that has an expiry date, especially a date that is not determined by you. It is also the income that is absent at the most critical stage of your life.

To achieve true financial freedom, a person must find alternative sources of income, that is durable and dependable. A dependable source of income is any income that remains consistent throughout life. It is also income a person can expand to match growing needs and aspirations.

The only type of income that matches this description is business income, and business income is the only type of income that can make you truly wealthy. But not all businesses can make you rich. Certain businesses can actually make you poor.

To create wealth from a business, you need to start with a profitable business idea. To know if you have a profitable idea, you need to test your idea to be sure it works, before investing money in it.

So, how then can you test your business idea?

You can test your business idea by, first finding out on paper how your idea will make money. Testing your idea is confirming upfront that there is a need for your products or services, before you enter the market. It is also verifying if the target market you chose will pay for your products and services.

When you test your business ideas, you prove your idea works. Only proven profitable business ideas will save you from years of regret. Proving your business idea is reducing your risk of failure.

According to global research, over 70% of businesses fail within the first ten years. These businesses fail partly because they ride on poor business ideas. To know if your idea is a rich idea or a poor idea, you need to prove it. Proving ideas reveal ideas that are a cash cow and those that are just a labor of love.

So how do you prove a business idea?

You can prove a business idea by doing these three things: First, you must target a starving crowd. A starving crowd is any group of people within an industry that has a burning desire or pain. They are the groups of people that are underserved in a particular market. They are those people with a need no one is attending to. Every industry has them, but it takes deep research to find them. They include all the people complaining about certain things in an industry, or those asking for certain things that are not yet available.

To find these kinds of people you need to answer certain questions; Questions like, who are the underserved people in my industry? What are they looking for? What if available will it make their lives better? What will make them pay a particular price for my product or service?

Answering these questions helps you narrow down to a profitable niche. It helps you stand out from the crowd. And it also increases your chances of success.

Doing what everyone else is doing in a line of business is setting yourself up for failure. You will not only extend your years of struggle, you may crawl back to the corporate world begging for monthly bread. To succeed in the business world you need to stand out from the crowd.  Standing out from the crowd means finding a profitable niche that can pay you. When you discover this niche, you would have achieved the first critical step to succeeding in business.

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The second thing you must do is to develop the capacity to solve the problem of your chosen starving crowd. The starving crowd you choose will only pay you when you solve their problems. Solving the problem of the starving crowd means developing three things: The first is knowledge. The second is understanding through experience. And the third is the right skills. Without knowledge, understanding and the right skills you cannot solve the people’s problem. When knowledge understanding and the right skills are missing, a person lacks confidence. The absence of confidence breeds self-doubt. And when self-doubt is present, customers can sense it. When customers sense a lack of confidence, they take their trust (money) away and the business fails.

The third thing you must do is choose only profitable starving crowd.  Not all starving crowds are profitable. Profitable starving crowds are crowds that recognize the value of your product or service and see your product as perfect solution to their problems. Also they should be able to exchange cash for it. When people give you money in exchange for your products or services, it is because they see value in it. Knowing who these people are upfront is critical for success in business. It also helps you position your business in ways that appeal to your target market. Wealth in business can only be created when people pay you.

To create wealth and achieve financial freedom you need to enter the business world. The way you enter the business world determines how much time you spend struggling in it. Business wealth will not be bestowed on you just because you started a business. Wealth will only come when you build businesses that stand on the strength of a proven and validated business idea.

When you enter the business world with the security of a proven business idea you increase your chances of success.

Perhaps you have a business idea or have already started your own business. It is time to prove and validate it. Proving your business idea is having an expert look into your business to verify its long-term profitability.

As a wealth advisor and business longevity expert my goal is to help you build businesses that are wealthy from start, resilient over time and relevant across many generations. To see how we can help you validate your business idea I have put together a special report called, “The Idea Validation Blueprint” that I can send to you. Send an email to [email protected], to see if you qualify for a copy.

Grace Agada is a generational wealth advisor, business longevity expert and author of the popular Solid Wealth Book. Her client comprises Working-Class Professionals, C-Suite Executives, CEOs and Boards of multinational companies. Her vision is to help her clients’ transition from fragile wealth to solid and irreversible wealth. She achieves this vision by helping her client exit the corporate world. Build wealthy and resilient businesses. And pass on their businesses to the next generation.

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Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.