Four Questions To Ask When Evaluating a Business Idea

Once you have identified a business idea (or several), you need to do a quick initial evaluation to see if it is actually a business opportunity that can generate revenue or just a great/cool/ fun idea. Once you evaluate it, you can decide if you want to do more extensive research and planning.

Here are some key questions to ask:

1. Will customers buy it? (Does it fill a need? Is it attractive to them?)

2.  What does the competitive landscape look like? (Are there too many competitors already? Do you have the resources to compete with them?)

3.  Can you create the business or build the product and bring it to market? (Do you have the resources and skills? If not, where will you get them?)

4.  Can you make a profit off of it? (Will you be able to price it so that you can make money? Will it be too expensive to create?)

We’ll use these questions in our next few posts to evaluate several different types of business ideas.