The best way to evaluate that a business will work
with a real example
Hey there,
Happy Wednesday! Hope you’re having a great midweek!
Today’s newsletter is going to give you some fresh insights on how to evaluate your business ideas before diving in headfirst. So, let’s get to it!
How to know if your business will be a hit?
So, let’s imagine you're sitting on a potential goldmine: A land in Maharashtra in an industrial area. You’ve got options, and you're weighing a couple of promising business ideas.
Here’s the thing: we’ve all been there, brainstorming and getting excited about new ventures, but how do you figure out if your idea is actually going to take off?
What are the best ways to evaluate whether your business will work, or if it’ll flop harder than a wet noodle?
I’m diving into this topic today with two ideas you’re already thinking about: laser cutting fabrication and extraction of antioxidants and supplements.
Both sound interesting, but how do you assess which one holds the most potential for success?
Grab your virtual pens and paper because I'm about to share some tips, insights, and fun facts to help you get there.
1. Assessing the Laser Cutting Fabrication business
First off, let's talk about the laser cutting business.
It’s a niche within the hardware world that you’re already familiar with. You’ve got the hardware shop, so you understand the game.
However, there are a few questions you should be asking to really assess its potential:
📌 Is the market saturated?
Laser cutting is a popular service, but that doesn’t mean it’s too late to jump in. Saturation does make it trickier, though. If a ton of people are already doing it, you’ll need to ask: “What sets me apart?”
Perhaps your edge is having a fast turnaround time or offering specialized services like CNC waterjet cutting (not as many people offer that!).
According to industry pros, fast and reliable service can make all the difference.
📌 What’s the competition like?
Some might argue that the market for laser cutting is crowded, but it also means there’s demand.
More construction, more industrial projects, more opportunities for your services. Look at competitors and identify what they’re missing.
A little market research can go a long way. Maybe you could even niche down further, like offering custom metal cuts for specific industries or even adding spark erosion to your service menu.
📌 What’s the investment vs. return?
The good thing about laser cutting is that it's an extension of your current business. The learning curve might be less steep, and you can get started with fewer risks.
However, you need to consider whether the initial costs (machinery, software, and setup) are worth the returns.
Think of it this way: less risk doesn’t necessarily mean less reward. If you get the basics right, this could scale well.
2. Diving into the Antioxidant Extraction business
Now, onto the extraction of antioxidants and supplements. This is a whole new ballgame for you, and it sounds exciting!
You’re stepping into the world of health, which, let’s face it, is booming right now. But here’s how to assess this idea:
📌 Is the industry growing?
Absolutely! With the increasing focus on health, wellness, and clean living, the market for supplements is growing fast.
In fact, according to some recent trends, the global supplement market is expected to grow at a CAGR of 8.8% from 2020 to 2027.
f you’re planning to target the B2B space, you’ll be tapping into companies that are making products ranging from protein powders to beauty supplements. There’s huge potential.
📌 Do you have the expertise or partners to pull this off?
Since this is a new field for you, you’ll need to learn about the science behind antioxidants and their extraction process.
Consider partnering with experts or hiring someone who knows the ropes.
Also, since you’re providing raw materials to other businesses, the quality and consistency of your product will be key.
If you can offer premium, organic, or niche supplements (say, something India-centric like amla extract), you may have a competitive advantage.
📌 What are the startup costs?
The investment required here will be different from the laser cutting business. You’ll likely need equipment for extraction, processing, and packaging.
Research and development will also play a big role. It might take longer to see returns, but once you’re established, it could become a high-margin business with great scalability.
How to choose between the two?
Okay, now you’re probably asking yourself, “Which one should I pick?”
Here’s the hard truth: There’s no guaranteed answer. Both have potential, but you’ll need to do a little soul-searching and evaluating.
Risk tolerance: The laser cutting business may be safer, but the antioxidant extraction business could bring in higher returns if you can tap into the health and wellness market.
Market research: Both ideas need research, but the antioxidant business requires more in-depth understanding and possible collaborations.
Passion: Which one excites you more? If you’re more passionate about health and wellness, go for the second one. If you enjoy working with machinery and creating customized solutions, the first one might be more up your alley.
Expert Tip
One of the best ways to test your business idea is through minimum viable products (MVPs).
In the laser cutting business, this could mean taking on smaller projects first, maybe even for friends or local companies.
For the antioxidant extraction, you could start small by experimenting with a single product like vitamin C and testing it with potential B2B clients.
This will give you a taste of what works and what doesn’t before fully committing.So, that’s it for today. If you enjoyed this edition, subscribe to hear from us every day!
See ya 👋
