Is Your Business Idea Viable?
1. Is there a market for it?
Many people want to start a business. They may choose to sell products or provide services just because they always wanted to do that. But one of the main rules in starting a business is that people must want to buy the product or service involved. Otherwise, you may find yourself trying to sell ice cream cones on a cold day – there is no point in going any farther with that business plan.
2. What’s the profit potential of this business?
In other words, is there any money in it - at least enough money to make it worth your while? You may have a flaming desire to crochet tablecloths, but if no one wants to buy your products, then it is not profitable.
3. Is the market saturated?
Existing businesses might be flourishing and there may be a market for the product or service you have in mind but if there is already too much competition- that could be a hindrance.
4. What are the obstacles to my business plan and are they surmountable?
Sometimes you have a business idea that seems a sure-fire. You know there’s a market for it, you know you’ve got the edge on the competition and you know it will be a money-maker – but there are showstoppers that you just can’t get around.
5. Do I have what I need to see this through?
Starting a business is grueling. It can’t be said any simpler. The rewards of being your own boss and independence is enticing for many. However, as they say, there is no gain without some pain. You will probably work more hours than you ever had before and may have to keep doing it for longer than you thought - it’s the tradeoff.
The bottom line is, if you’re not prepared to make the personal commitment your business plan takes, or aren’t physically up to the challenge, you can shelve it for the moment. Later, when you are ready to start- you will have done most of the leg work. You may even surprise your self and find that the plan needed some further fine-tuning.