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Klieon John

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How do you make money from your business ideas?

If you're anything like me, you never run out of ideas. There's always something brewing in my head about a great product or service that I'm sure would take the market by storm. But here's what I want to know:

1. How do you know when your idea is profitable?
2. What are the steps to turning a profitable idea into well...profit?

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  • Jan 12 2012: 1) Thats the financial risk any business man/woman has to make, unfortunately.
    The reality is that there aren't many manufacturers/groups that cater towards new business and still expect you to purchase 100's - tens of thousands of their items at a time and most empty store owners still expect you to pay full rent, give a full deposit and immediately sign a long term contract.
    Unfortunately this is one of the central reasons why most good ideas never go ahead, because its quite hard to test items before hand, especially when you have to have them manufactured.

    Luckily in a few cases (if you're purchasing someone from another country thats pre-made but not available in your local area, for example) you can purchase small batches and open temporary stalls/stores/websites or attempt to sell them to other companies. You wouldn't make much profit at that time (if any), but you would gain a basic idea as to how well the product could do under better and bigger conditions.

    It really comes down to trial and error with the inclusion of luck and just so happening to know the right people.
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      Jan 12 2012: Great insight Xavier. I've been hearing this more and more actually. Many business minds are saying it's a good idea to start with a prototype or a locally scaled model of your idea and pretty much see what people think and how it fares. But how do you deal with the fear of someone with better resources just taking your idea while it's in its baby stages and blowing it up to make a serious profit? This kinda puts you out of the loop on your own idea doesn't it?
      • Jan 12 2012: Yes, it is a typical concern.
        The one way around this issue is to patent your product, thereby preventing others from copying it.

        But in the case where the product already exists and/or can't be patented, all you can really do is focus on monopolizing the market as soon as physically possible and/or getting as many sales as possible.
        With any luck, its that concern that will make you more motivated to try and get your products into as many places as possible.

        Ofcourse to a large extent the concern isn't half as large as people assume it to be. Just because a product/idea CAN be stolen doesn't mean it WILL. I actually have (replica) product stock next to me now that I just began selling (which wasn't patented, so I could replicate it) and the product has been around for atleast 8 years and I'm technically the only competition to it.
        So its really not something to worry about too much.