Sometimes I think I may be slightly too obsessed with businesses. I’m constantly coming up with ideas and waiting for that one idea that makes me really excited. Not only that but here lately, I’ve had several other entrepreneurs ask me to critique aspects of their businesses, which has made me even more fired up.
And I have finally found a business idea that I’m ready to move forward with.
If you’re not sure whether or not you have a viable business idea here are some questions you can ask yourself.
Is There a Market?
The first thing to consider when coming up with a business idea is the market. Who’s going to buy your product or service? How often will they buy it?
Is the market big enough for you to actually make any money?
Narrowing down to your ideal customer is important. If you’re not clear on what type of person will be interested in what you’re offering you probably need to work on your idea a little longer.
Are You too Caught Up in Originality?
A lot of people get caught up in originality. The truth is that there’s not many original ideas out there. And there’s especially not many original ideas that are going to make you money.
Some of the most profitable businesses aren’t the least bit original. And why should they be if a certain business model has proven itself to be successful?
Take selling on Amazon for example. There are thousands of people making a full time living selling basic household products online. There are many people making a full time living by freelance writing, web design, or others services. Other business owners make a living from owning shoe stores, car lots, or insurance offices.
These ideas are nothing new. What will set your business apart is not necessarily your idea but your execution.
How Much Money and Time Will Your Business Require?
Personally, I believe that businesses should be started on the side. Thousands of businesses fail every day. That’s why you need to keep your day job while growing your business.
This means the time and money you need to start your business will be a huge factor. You need an idea that you can implement alongside of your day job. And unless you were born a millionaire you need to stay on a shoestring budget.
For me, I wouldn’t start a new business that took me more than $1,000 to start and twenty hours per week to work on.
It’s best to test out your ideas and make sure they’ll be profitable before quitting your job and tying up your life savings.
Think of the Worst Possible Scenario
The worst possible scenario can help you make the decision of whether or not your business idea is a good one.
For instance, if you have to take out a second mortgage on your home and you stand to go bankrupt if your business fails, that’s a pretty big deal.
But if you start small and the worst thing that happens is you lose $500 and end up with a bruised ego is that really that bad? No. It’s not. You can earn that $500 back and your ego will heal. And best of all you’ll have learned a valuable lesson.
After taking those points into consideration do you think you have a good business idea?
Photo Credit: Stock Images
Definitely important questions to ask yourself before starting your own business!