Work + Money

Sunday, September 7, 2008

8 ways to assess your business idea

Getty Images

Getty Images

So you have a business idea? How do you know if it is feasible? Where do you begin? Ah, the age-old "starting a business dilemma." Here are some ways to test your idea.

1. Ask your friends and family for their opinions.


This is really your first round of gut-instinct research but nothing more. In the business world, you can't necessarily take the word of friends and family as gospel unless they know business or the industry you are looking to enter. Friends and family aren't really your best gauge of a business idea - but they are usually the easiest group to approach, and by talking about your idea to them, you can hone your business pitch.

2. Ask professors, professionals and mentors.

To get a more unbiased opinion of your business idea, go to the experts. If you don't know any, seek them out. If the experts echo the opinions of your friends and/or family, you may be on to something...or not.

3. Write a business plan.

There are software programs and online templates available for writing a business plan. One example is BPlans.com. You could also turn to your local SBA or SBDC office for assistance or your community college or university for a course in writing business plans. Even check out SCORE where retired professionals consult entrepreneurs for free.

4. Do market research.

Part of any solid business plan is an entire section evaluating the market or potential customer base. The Internet is an invaluable research tool for any aspiring business owner. Reports and white papers abound on almost any topic and on any industry so get Googling. And don't forget to check out the competition.

5. Make a prototype.

If your business involves a product - particularly something that is not yet on the market - do your homework and find a way to make a sample. This sample product can help you garner more extensive opinions about your idea or get funding to make it happen. If your product idea is truly unique, explore getting it patented. Check out the US Patent & Trademark Office's web site for more information or you may even want to hire a lawyer to help you protect your invention.

6. Test a service.

If you are offering a service, identify your ideal customer and offer to perform the service at a discount. In some cases, service providers will take on a pro bono client - usually a small nonprofit organization - to test out their service and build their client portfolio. Don't get in the habit of giving it away but sometimes it helps to get some real work under your belt and hae something to show for it.

7. Go for the low cost of entry.

If you are thinking about getting office space in order to start your business, think again. Until you have a proven demand for your product or service, taking on unnecessary overhead could kill your business before it even begins. This is what makes many online businesses so attractive - the low cost of entry.

8. Don't go for the quick hit.

A good, solid business grows over time. In some cases, an idea takes off but these wild success stories are not the norm. Be prepared for slow and steady growth and have a contingency plan for bumps in the road. They say if you are still in business after the first five years, you'll probably stay in business - but you never know what can affect your business staying power.

Even very established and successful companies failed after 9/11, for example - a totally unexpected event that was devastating in ways too numerous to count. There will always be events beyond your control that could affect your business. Work on the things you can control and have backups for everything else.
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Comments 1-7 of 7
  • doitformbaby10's Avatar
    Posted by doitformbaby10 Sat Jun 7, 2008 2:56pm PDT

    I make all of my extra income online, it's really not that hard, so the money like free money anyway. You can see my list of free sites at http://www.freewebs.com/free2workathome/

    Report Abuse
  • Marias's Avatar
    Posted by Marias Mon Jun 9, 2008 4:27pm PDT

    Hi, I'm in college, freshly new, 5th week. For a business presentation or emails,memos and letters, look at the tone of writing style, word choice, informative and substanant messages, non-dicrimination and how you address the person or persons in business etiquette.

    Report Abuse
  • Rebecca L.'s Avatar
    Posted by Rebecca L. Tue Jun 10, 2008 2:28am PDT

    I have a great business idea; I tried it myself and I made thousands of dollars. I sold Dead Sea Wonders beauty products. If you want to hear more log on to www.deadseawonders.net and see "Business opportunities". The staff at Dead Sea Wonders are very helpful and you will be able to start your own business in no time.

    Report Abuse
  • Lolita C's Avatar
    Posted by Lolita C Tue Jun 10, 2008 2:59am PDT

    I make tree-free handmade paper and novelty items. I am looking for a distributor of our handamde paper sheets and stationery line. Its raw materials are abaca fiber , banana fiber and cogon grass. Please visit www.cdohandmade.com.

    Report Abuse
  • rada.ahmed21's Avatar
    Posted by rada.ahmed21 Tue Jun 10, 2008 7:56am PDT

    reda@21

    Report Abuse
  • carla's Avatar
    Posted by carla Tue Jun 10, 2008 8:08am PDT

    Got this idea at www.blogccentric.blogspot.com about fashion

    thanks gurl!

    Report Abuse
  • axxanews.com's Avatar
    Posted by axxanews.com Tue Jun 10, 2008 3:45pm PDT

    Thanks for your ideas,but you need a lot of money to start an online business...

    Report Abuse
Comments 1-7 of 7

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