Course Catalog / BMU 170 / Lesson 1 of 6
BMU 170
New to this course? Take the pretest first. About 10 minutes, not graded. It shows your starting point, so at the end you can see how far you came. Take the pretest
Lesson 1: Is it a business?
New to this course? Read Getting started first. Key words are in the glossary.
Your Course Project: this lesson builds Part 1: Problem and customer. After the Try it, add it to your Course Project and press Check this part.
Warm up
1. Think of the last time you paid someone to fix a problem for you. What was the problem, and why did you pay instead of doing it yourself?
See the answer
People pay to save time, get a better result, or avoid a hassle. A business idea starts with a problem like that.
Why this matters
Many people have a business idea. Few ask the two questions that matter most: what problem does it solve, and who will pay to have it solved?
BMU Learning built this course to help you test an idea with real people before you spend much money.
First: is your idea a business, or a hobby you would like to get paid for?
Start with what you already do
You already judge value every time you pick a mechanic, a barber, or a lunch spot.
Common belief: If I love it and I am good at it, people will pay for it.
What is actually true: Skill and passion help, but a business needs a problem people will pay to solve. The SBA tells new owners to check demand first: is there a desire for the product or service, and what do people pay for the options they use now?
In this lesson you will
- Describe the problem your idea solves in one sentence
- Name the person who has the problem and the person who pays
- List two ways people solve the problem today and what they pay
- Rate your idea with the five question idea test
Key words
problem, customer, alternative, idea test. Find what each one means in the course glossary.
What this course is and is not
Start with the problem
A business solves a problem for someone. Write your problem as one plain sentence about the customer, not about you.
| About you | About the customer |
|---|---|
| I want to start a detailing business. | Busy parents have dirty cars and no time to drive to a car wash. |
| I am good at fixing small engines. | Neighbors put off lawn mower repairs because the shop is 40 minutes away and takes two weeks. |
The second column tells you who to talk to and what they care about.
Who has it, and who pays?
Sometimes the person with the problem is not the person who pays. A teen needs tutoring, but a parent pays. Name both. You will need to talk to the one who pays.
What do people do today?
Every problem already has some answer, even if it is a poor one. People do it themselves, ask a friend, use a big company, or just live with it. The SBA calls these alternatives and tells owners to find out what customers pay for them.
If people live with the problem and pay nothing, that is a warning sign. It may not hurt enough for them to pay you.
The five question idea test
Score each question 0, 1, or 2. Be honest. This is for you.
- Problem: Does it cost people real time, money, or stress?
- Payer: Can you name a specific person who would pay?
- Reach: Can you reach 10 of those people in the next two weeks?
- Skill: Can you deliver it well now, or learn quickly?
- Budget: Can you test it for less than you could afford to lose?
A score of 7 to 10 means test it next. A score of 4 to 6 means fix the weak spots first. A score under 4 means try a different idea. The test does not predict success. It tells you where to look.
Text version of this figure
- Problem: Costs people time, money, or stress? Keisha scored 2.
- Payer: Can you name who would pay? Keisha scored 2.
- Reach: Reach 10 of them in two weeks? Keisha scored 2.
- Skill: Deliver it well now, or learn fast? Keisha scored 1, her weak spot.
- Budget: Test it for what you can lose? Keisha scored 2.
- Keisha's total is 9. 7 to 10 means test it next. 4 to 6 means fix the weak spots first. Under 4 means try a different idea.
Use it when: you have a business idea.
Try it: Score this made-up idea: Jo wants to sell homemade dog treats. She knows 3 dog owners, has baked for years, and would need a $400 mixer to start.
- Score each question 0, 1, or 2.
- Add them up and read the band.
Check your answer
- One fair scoring: Problem 1, Payer 1, Reach 1, Skill 2, Budget 1. Total 6.
- 6 means fix the weak spots first, such as finding 10 owners to talk to and testing with the mixer she has.
Why: Your numbers may differ by a point. What matters is naming the weak spots honestly.
An honest word about risk
Many new businesses close. Federal data from the Bureau of Labor Statistics shows that of the business locations that opened in the year ending March 2021, about 47% were still open five years later. So test small, spend little, and learn fast.
Worked example: Keisha tests her idea
Keisha's first idea was: I want to start a detailing business. She rewrote it.
- Problem: Parents with long commutes have messy cars and no free time on weekends.
- Who pays: The same parents.
- Alternatives: A drive through car wash for about $15, or doing it themselves on Sunday.
- Idea test: Problem 2, Payer 2, Reach 2, Skill 1, Budget 2. Total 9.
Her weak spot was interior stains, so she will practice on two family cars first. Keisha is a made up example.
Strong and weak examples
Two made up situations. Decide which example is stronger, then check.
Situation 1
Example A: I want to start a detailing business.
Example B: Problem: parents with long commutes have messy cars and no free weekends. They pay. Today they use a drive through wash.
Check your answer
Example B is stronger. Problem, who pays, and the alternative they use now.
Why the other one falls short: It names what you want to do, not a problem someone pays to solve.
Situation 2: A home kitchen idea
Example A: I love baking, so I will open a bakery.
Example B: Problem: office managers need a dozen fresh treats for Friday meetings and the grocery store is hit or miss. They pay from a team budget. Today they grab boxed donuts.
Check your answer
Example B is stronger. A real customer, a clear payer, and what they use now instead.
Why the other one falls short: A passion is not a business until you know whose problem it solves and who pays.
Guided practice: The five question idea test
Answer first, then check.
Text version of this figure
- Problem: Costs people time, money, or stress? Keisha scored 2.
- Payer: Can you name who would pay? Keisha scored 2.
- Reach: Reach 10 of them in two weeks? Keisha scored 2.
- Skill: Deliver it well now, or learn fast? Keisha scored 1, her weak spot.
- Budget: Test it for what you can lose? Keisha scored 2.
- Keisha's total is 9. 7 to 10 means test it next. 4 to 6 means fix the weak spots first. Under 4 means try a different idea.
Use it when: you have a business idea.
Try it: Score this made up idea: Jo wants to sell homemade dog treats. She knows 3 dog owners, has baked for years, and would need a $400 mixer to start.
- Score each question 0, 1, or 2.
- Add them up and read the band.
Check your answer
- One fair scoring: Problem 1, Payer 1, Reach 1, Skill 2, Budget 1. Total 6.
- 6 means fix the weak spots first, such as finding 10 owners to talk to and testing with the mixer she has.
Why: Your numbers may differ by a point. What matters is naming the weak spots honestly.
Common mistakes
- Describing yourself, not the problem. Write the sentence about the customer.
- Assuming everyone is a customer. Name one kind of person who would pay.
- Ignoring what people do today. List the alternatives and what they cost.
Try it: Run the idea test
Pick your scenario:
- An idea you have had for a while
- A skill people already ask you to help with
- A problem you see at work, church, or in your neighborhood
- Start a notebook or file called Business Notebook.
- Write your problem in one sentence about the customer.
- Name who has the problem and who pays.
- List two alternatives people use today and what they pay.
- Score the five question idea test and write the total.
- Circle your weakest score and write one way to improve it.
Do it by: tomorrow
Reflect
What part of your idea are you most sure about, and what part are you guessing?
Check your understanding
1. Which problem statement is most useful for testing an idea?
- I want to open a bakery because I love to bake.
- Office managers need fresh snacks for Monday meetings and order from a store an hour away.
- Everyone likes cookies.
See the answer and feedback
B is correct. It names a customer, a problem, and what they do now.
A: This is about you, not the customer.
C: This is too broad to test.
Review: Start with the problem.
2. A tutoring idea helps high school students with math. Who should you be sure to talk to?
- Only the students.
- Only other tutors.
- The parents, since they usually pay.
See the answer and feedback
C is correct. Talk to the person who pays.
A: Students have the problem, but parents often pay.
B: Other tutors are not your customers.
Review: Who has it, and who pays.
3. Your idea scores 5 on the idea test. What should you do?
- Fix the weak spots, then test it.
- Quit, since 5 is a failing grade.
- Start spending, since 5 is high enough.
See the answer and feedback
A is correct. 4 to 6 means fix the weak spots first.
B: The test points to weak spots. It is not pass or fail.
C: Fix the weak spots before you spend.
Review: The five question idea test.
Recap
- Write the problem about the customer, not about you.
- Name who has the problem and who pays.
- Find out what people do and pay today.
- Score the idea test and fix your weakest spot.
You now have: a problem statement, a named payer, and an idea test score.
Next up
Next you will talk to real people about the problem. Lesson 2: Talk to customers. BMU 170 is part of BMU All Access. All Access is $9.99 a month and gives you unlimited access to the course catalog. Sign up free as a Founding Member to continue. Public enrollment opens Nov 9, 2026.
Sources
Please read
This course teaches a process for testing an idea. It does not promise income or profit, and nobody honest can. General education, not legal or tax advice.
