Questions to Ask Before you Pursue a Business Idea!
Questions I thought to share since we have now launched our business ventures and reviewing them for the week.
|Question||Elaboration on the question|
|1. Does your product or service work?||If your product doesn’t solve a real problem and doesn’t provide measurable benefits, it’s not the basis for a sustainable business|
|2. Are there similar products on the market?||Might be counterintuitive, if there is no other product like it, may be that there may not be a market for your idea. Lack of competition could be a warning sign.|
|3. Will it take more than 90 days to build?||If it takes more than 6 months to launch, chances your idea of getting off the ground slim since you will need to pay your own salary and those of your employees. Unless an investor is willing to take a risk on you.|
|4.Do the numbers add up?||Can you identify how many customers you will need to support your business? Can you make enough profit to cover your salary for three to five years?|
|5. Do you have social proof that your idea will succeed?||Have over 100 customers said they would buy your product or service or have you asked others for an opinion?|
|6. Do you have enough capital?||To start and fund your business for one year|
|7. Can you generate repeat revenue?||If people only buy your product once, you won’t make money|
|8. Would you pay for your product?||If someone else tried to sell your product to you would you buy it?|
|9. Does your idea pass the “smell test”?||Hoping and knowing an idea will work are different. If financial, technical or marketing questions are lacking these are warning signs.|
Adapted from Wiley and Sons (2012)”The Dragon Den’s Guide to Assessing your Business Idea” pg. 45
I found these questions really interesting because this is the first “business” geared course I have ever taken and I am continuing to learn a great deal from all of you, Dr. Vogt, Dr. Porter and from our learning experiences doing our assignments. Wonderful opportunity to actually create or pitch a potential business idea for the future! I have such a greater appreciation for entrepreneurs and the amount of work that goes into creating, initializing and moving a venture business project forward from this MET course.
I can understand now why #2 is so important in a pitch to demonstrate to an investor the need but also a products marketability. Also questions #7 and #8 are so relevant. An idea can be a great one but if consumers do not buy your product multiple times or continue to be your customers, your business venture will not survive. Thought many of you may be interested in these questions as you truly pursue marketing your ventures in the current economic business market.