Most people who are reading this already have a great business idea and now they want to start a company and enforce their idea.
Everyone has “brilliant” business ideas. To keep business ideas in check, in all big companies there is some sort of idea screening process. Most of the time the problem with ideas is that the ideas are brilliant but not very feasible in the real world.
The first way to screen your ideas is to answer the following questions. These questions are designed to give you a better understanding of your own idea. If you find that you cannot answer these questions, you might need to research about your idea some more.
Is there a genuine need for your product/service?
Is the need substantial enough to support a profitable business?
Do competitors currently offer similar products/services? If “yes”, do your ideas offer distinctive advantages and customer benefits that competitors don’t?
Is the product/service feasible to produce?
Is the product/service legal?
Is it safe?
If the product/service is a durable good, can it be easily serviced? (Who will service it?)
Are the investment costs required to develop, produce, and market the product reasonably, within your financial realities?
Is the “pay-back period” fast enough to allow you to stay in business?
Can the product be expanded into a line of similar or compatible items later, if the original product was successful?
Can you protect the product with a patent or copyright?
Does the product infringe upon anyone else’s patents or copyrights?
Are all the needed raw materials and supplies readily available?
In many cases, once you answer these questions you realize that your idea is not that great. You might have to brainstorm and come up with another idea. But, sometimes, what happens is that people are so convinced about their idea they disregard all the information that clearly points out that their idea is not profitable. This always results in failure. What ever you do, make sure you do not fall for this mistake!
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