Analyse a business idea

How to analyse business ideas with AI for viability and innovation potential.

beginner pro

Tool: Gemini Topic: General

2024-11-13

Coming up with new business ideas is often the easy part. The challenge lies in selecting the one with the most potential - a process that can quickly eat up weeks.

This tutorial provides a structured approach to analyzing the viability of your business idea with the help of Gemini Advanced, Google’s paid AI chatbot. Using Gemini, you can get a head start in developing a deeper understanding of your idea.

In this tutorial, we’ll focus on a potential business idea and use Gemini to:

Define our target audience
Conduct in-depth competitor analysis
Perform comprehensive market research
Validate our business assumptions

Understanding who you're serving is fundamental to building a successful business. Gemini can act as a brainstorming partner to pinpoint your ideal customer, including their demographics, interests, and pain points.

I want to analyse a business idea around [your idea]. My hypothesis is [insert hypothesis]

What would be the target audience for this idea? Include ideal customer profiles and key demographics. Suggest online resources that would aid in this research.

Knowing your competitors inside and out will help you create a distinctive value proposition. We'll use Gemini to identify your major competitors and uncover their strengths, weaknesses, and pricing strategies to find areas where you can excel.

Who are the top competitors for [your idea]? For each competitor: list their product or service offerings, strengths, weaknesses, target audience, and pricing strategy. How do I go deeper into spotting potential gaps in their offerings?

Before committing resources and time, it's wise to investigate the market you'll be entering. Uncovering its size, growth trends, and potential challenges will give you a realistic picture of the opportunities and hurdles your business may face. Gemini can help you find industry reports, key statistics, and reliable data sources to make informed decisions.

What is the estimated market size and growth projection for [your idea]? Provide key industry trends, relevant reports, and a summary of regulations that may impact the business. What are some data sources I can rely on, both free and paid?

💡 Tip: A word of caution - AI chatbots hallucinate numbers and sources confidently. Cross-verify this information with direct sources.

Gemini has a “G” button below its responses that double-checks its answers against web articles by doing a Google search. Here’s an example result after double-check:

All businesses start with assumptions. It's essential to question and validate these assumptions to build a robust business model. Gemini can help you identify key assumptions and suggest ways to test them, minimizing risks and maximizing potential for success.

Develop a list of primary assumptions for my business model.

[outline basic model]

Create survey questions to validate these assumptions that I can use to interview my target audience. Suggest prototyping methods for getting early feedback on my business idea.

💡 Tip: Gemini can create up to 3 drafts for your prompts. I often like to compare drafts from Gemini and note similarities and differences from these drafts.

For each of these queries, you can brainstorm with Gemini to go deeper on what piques your interest. This might be a specific competitor or a report that matches your idea to a larger extent. You can note down your takeaways from these rabbit holes in a document.

I’ll leave you with a final prompt to try on your own with Gemini:

Using the competitor analysis, market research, and assumption validation from earlier, please identify hidden opportunities for [your business idea]. Focus on competitor weaknesses, underserved customer segments, and adjacent markets.

Analyse a business idea

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