Evaluating those ideas
Now is the time for a little market research, investigative study, and general digesting.
A view from above
Begin with a bird's eye view of each idea. Remember what we said initially about not just trying on the pants if you want to buy the whole suit? Well, now's the time to try on the whole ensemble. Here is what you have to look at:
- Is there a market for your idea?
- Does the market have money?
- Is there a lot of competition?
- Can you come up with the funds it will take to get the business started?
- Do you know how to market and sell the produce/service?
- Can you easily get the product or service to your customers?
What is the best way to get it started?
You have the general idea of the marketability of the idea, but what is the best way to get the business started? Can you begin as a part-time home business, or does it require more manpower and space? Is a franchise possible or can you buy an existing business?
What is the income possibility for the idea?
Can you estimate the amount of income you can expect from each business idea? In order to do this, you have to have a good idea of the level of demand for the product or service, as well as a good feel for what the competition is charging. You also have to realistically estimate your production capabilities.
Are there additional needs and costs related to the idea?
Do you know enough about the type of business or will there be a significant learning curve? How much time and money will be devoted to learning about the business? Can you afford to take that time? If you are starting the business as a part-time side business from home you may have the luxury of trying some different businesses. If you're quitting your day job and are looking to replace that income then you need to make sure you do all of the homework to make the best decision possible.
Use our Business Idea Assessment Worksheet. It will take you through the steps we've just outlined and help you make that final decision.