How To Avoid Dumb Business Ideas

Is your business idea worth it?

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Learning to evaluate business ideas is a key skill for all entrepreneurs. By being able to achieve that skill, I was able to support so many start-ups to measure their success.

1. Desirability

When creating a business you need to ask yourself …

• Is there a demand for my product?
• If there is demand, is it seasonal? or year-round?
• Is the demand temporary or continuous?

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Asking yourself these questions will solve the most basic question of them all, Is your business needed? The desirability for your goods and service is the foundation of your business. If the product is not in-demand, chances are you’ll have a lower success rate.

In cases where you believe your business could be in-demand when it’s currently not, then marketing it in a way where people use it daily is your way to go. Creating a sense of need for your product can be persuaded through social media influencers.

Examples such as electric toothbrushes and mini-fridges for your products. It’s not needed, but influencers create an atmosphere where these products create an altering life change when most of the time it doesn’t.

2. Feasibility

After finding your demand you need to ask yourself…

• Is my product feasible?
• Can I produce it on my own? or do I need a team?
• Are there available resources to create my product?
• Am I fit to being a CEO?

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The feasibility portion indicates the possibility of doing it. Great ideas happen all the time, but getting all the resources and producing them is where it gets tricky. Floating around space is a great idea to explore the galaxy firsthand, but currently, doing it is nearly impossible. Questions like these need to be asked after the need to establish if you can provide the resources to continue.

3. Viability

You’ve been able to recognize your desirability and feasibility, but you need to ask yourself one more time.…

• Is my business viable?
• Can I profit from my business?
• Is the profit worth the time and effort to produce the product?
• Are there any possible risks? and can they be mitigated?

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The last part is understanding the financial portion of it. Will my revenue out-way the costs? Focusing on opportunity cost in this portion will help you tremendously, because if the product doesn’t seem much profitable should you pursue it?

By learning how to apply these 3 components in your business idea, you’ll certainly avoid dumb ideas in the future.