Most of the people come up with new business ideas, but in the end none of those business ideas make are implemented. This is mainly because most of the time people have to weigh the arguments for and arguments against pursuing such business ideas. But how do you evaluate them? Here are some critical questions that you must ask yourself before you think about pursuing any such business idea.
1. Will the business idea support the lifestyle I want to live?
It is essential that you figure out the way you want to lead your life. When you are clear about it, you should really focus on those ideas that comply with way you wish to lead your life. Let’s say you want to travel and have flexibility in terms of when you want your work done, then you should really focus on those ideas that allow such flexibility and also provides with scope to travel.
2. What value will your business idea provide to the market? Will it be unique?
It is essential that you figure out the competitive edge of your business idea. Otherwise, your business idea may not create any significant stir in the market.
3. Is it possible to market my product or service through the existing channels?
You should be able to distribute your product or service through the existing channels. Leveraging existing sales channels is the quickest and easiest way to get a business of the ground profitably.
4. How strong are your competitors?
Every business faces competition. Before you get on with your business idea, it is better to have a good understanding of your competitors’ strength. That way you can set your marketing strategies accordingly.
5. What will be your marketing strategy?
Planning out the marketing strategy for your business idea can be helpful. Entrepreneurs with a detailed plan of their businesses marketing strategy has the ability to compete evenly with their competitors.
6. How will your business get revenue? Will it be short-term or long-term?
At the end of the all businesses has to earn money. Before you start your own business you should have a clear idea about its revenue base. You should also identify the nature if the revenue. Is it short-term or long-term? A long-term revenue base is preferable to a short-term revenue base.
7. Which technology will you be using? Will it be obsolete within a short period of time?
Technology is an important aspect of any business. All entrepreneurs should have a plan regarding the technology they are going to use for their business. The technology being used should also be modern and not in the verge of being obsolete.
8. Can you automate majority of the business operations?
Try to take advantage of as much automation as possible to reduce the overhead of operating a business.
9. Can you hire talented and skilled employees to run the business?
You should be able to hire skilled employees to run your business. A business idea that can attract talented and skilled individuals is worth investing in.
10. Can this business become sell able asset?
The often win often comes from being able to sell and exit your business when you are ready, but not all business are that easy to sell.
11. How will you finance your business? How difficult will it be for you to arrange he amount of money required?
It is essential that you find out your sources of financing your business. Sometimes it might be easy to arrange financing but most of the time it is very difficult. You should have a clear idea about the level of difficulty of financing your business.
12. Is the business something that you would like to run a couple of years from now?
In reality businesses don’t grow as quickly as you would like to. So the question arises, whether you would be attracted towards running the business a couple of years from now with the slow growth rate?
You should have a clear understanding on most of the question above and you must build your business idea based on the answers that you give for the questions above.