For serial entrepreneurs and other creative types, new ideas come frequently. But determining whether those ideas are any good? That’s another animal entirely.
As much as you may love your newest business idea right now, it’s always worth investing a little time in evaluating that idea before leaping into the development process. With that in mind, here are three helpful ways to examine a new business idea, and to determine whether or not it is a keeper:
Know your market and customer:
Does your idea fill a current need in the marketplace? What makes your new product or service “special” to the point that it would survive or innovate in the current landscape? While connecting with the clients who want what you’re offering is Business 101, it’s easy to forget just how difficult that may be, especially if your market is already saturated. Make sure you determine the viability of your market presence right at the get-go, or you may find yourself without the customers you need to survive.
Evaluate the limitations:
What are the barriers to entry here? Could you avoid or minimize them by planning ahead? You are bound to encounter obstacles before your launch, so knowing and anticipating what potential limitations face your new business could save you some major headaches down the road. Remember, failing to plan is planning to fail.
Are you willing to spend the next several years—or decades—of your life working on this project? Does your passion for the venture go that deep? If your answer to either of these questions is anything but “Yes,” it may be time to re-consider. Launching a new business takes many years of hard work, and that demands a sort of resolve that cannot be easily phased.
Have you ever launched a new business? What was your evaluation practice like? Feel free to share in the comment section below. I’d love to hear what you think.
Mark Briggs has been representing businesses and their owners for nearly 20 years, first as an associate and partner at the national law firm Quarles & Brady and now with Briggs Law Group, which he founded in 2009. Among his many other awards and accolades, Mark has been peer-review rated AV Preeminent, the highest possible rating for both legal skills and ethics, by Martindale-Hubbell for the last six consecutive years.