PerfectBusiness.com - Powerful Business Planning Software , Find Startup Funding.

Table of Contents

Web

Technology

Location

Legal

Personnel Management

Risk Management

Insurance

Business Success Tips

Sample Documents

Checklists

Contributing Authors

	Tom Severance Author of Business Start-Up Guide
ORDER NOW: Business Start-Up Guide
	Joe Kennedy Author of The Small Business Owner's Manual
ORDER NOW: The Small Business Owner's Manual
	Steven D. Strauss Author of The Small Business Bible
ORDER NOW: The Small Business Bible
	Stephanie Chandler Author of The Business Startup Checklist & Planning Guide
ORDER NOW: The Business Startup Checklist & Planning Guide

Evaluating Business Ideas

Ideas are a dime a dozen. People who put them in practice are priceless. You need to go beyond dreaming. Nevertheless, evaluate all business ideas carefully before taking action.

Your best chance for success depends on several factors. If you can honestly answer yes to the four following questions, you’ve probably found the business for you. Answering yes to three of four is still encouraging. However, if you answer yes to only one or two, the odds of success and happiness dwindle.

Question 1: Do you love the business?

Question 2: Are you skilled at the business?

Question 3: Do you have experience in the business?

Question 4: Is the business “on trend”?

As far as “loving” the business, would you still start and operate this business if there was no monetary compensation? Imagine you just won $10 million in the state lottery or you just inherited $10 million. You don’t need to work another day in your life. Of course you take some time off to celebrate and enjoy your winnings. It might be a week, a month, a year, or more. Regardless, there comes a time when you want to do something productive. Would this be the business? If you can honestly answer yes, congratulations! You love the business.

Make sure you are skilled at what you do. You have unique abilities and talents to use in your life. Are those talents and abilities useful and appropriate to the business? Are you putting your skills and talents to their best use? Strive to be the best in your field and an acknowledged expert in the subject area.

Experience can come through working in a similar business or through education in your industry. Any work in the business, even if low-level or part-time, is very valuable. Learn as much as you can about the business and all employment positions. Always be thinking about what you could improve on if and when you are in a business ownership position.

Carefully analyze each new business, new product, and new idea to determine whether it is “on trend,” “off trend,” or “neutral.” Trends change over time, and people differ in their assessment of trends, so use an updated trend list that is consistent with your opinions when doing this analysis. Run the business or idea through your personally developed list of major trends. Use a little imagination to determine if it is consistent with each of the trends. If it supports at least four trends, you’re on the right track. More than four is a bonus and should be even more encouraging.