Will people be willing to pay for your product or service?

A great idea can only translate into a successful business if people are willing to pay for the product or service.

First, you need to determine the target market for your offering. Are you planning to sell to young people or to seniors? Is your product primarily for women, men or both? Is it a necessity or a luxury item? Are you going to sell to individuals, other businesses or to the government?

Once you know who you are going to sell to, you’ll want to find out how much the target market would be willing to pay for your product or service.

If your product or service is something people would be interested in, but not willing to pay for, you can consider alternate business models. Some businesses, in particular in the service industries, offer their service for free or at a low price, but are able to make money through other avenues, such as advertising.