10 Key Questions to Ask Yourself About Your Business Idea

Do you have a world beater of a business idea? How do you know? Before investing in your idea, you will need to test the concept to be sure it has viability in the marketplace. You can begin by asking yourself these 10 key questions:

Who is my customer? You need to be able to identify your potential target market’s largest problems and how your product or service solves them.

What makes it a better mousetrap? Whatever you are thinking of, there is most likely something out there on the market that your better mousetrap has to replace. Spend some time thinking about what gives your product a competitive advantage.

How do I demonstrate it to others? Your idea needs to be as tangible as possible so others can grasp its significance.

Who do I need on my team? If you are the president of this new venture, who is in your “cabinet”? You need help from experienced advisors, especially in the early stages.

What resources will I need? You need to determine what you need to bring your idea to market – office space, computer equipment, manufacturing, etc.

What is the purchase cycle? How long will it take from your target market knowing nothing about you to get them to buy from you? If it’s a long time, you’ll need more capital up front to wait it out.

What is a realistic sales forecast? Coming up with a solid sales forecast is critical to business planning, and you should err on the side of conservatism.

What is the growth potential for my idea? If you are only selling your time, your potential for growth is finite.

Do I have the right skills? Honestly assess whether or not you have the skills to turn your idea into a profitable business.

Can I make the sacrifice? Getting a new business off the ground can take 2-3 years before you ever see a dime of profit. Can you make the necessary sacrifices to bring your idea to fruition?