Assessing the viability of your business idea
In testing the viability of your proposed idea you may want to check whether you could answer the following questions:
- What are all the advantages or benefits of the idea? Is there a real need for it?
- Have you established some of the problems or difficulties your idea is expected to solve?
- Does your idea satisfy a consumer need in the market, or does the need have to be created through marketing and advertising efforts? What would the degree of these efforts be?
- Is your idea based on an entirely new concept, or is it a new combination or adaptation?
- What immediate or short-range gains or results can be anticipated? Are the projected returns adequate? Are the risk factors acceptable?
- What long-range benefits can be anticipated?
- Have you checked the idea for faults or limitations?
- Are there any problems the idea might create (e.g. will it result in any environmental impacts)? What are the changes involved?
- Have you considered variations or alternatives?
- Does your idea have an inherent marketing appeal? Is the market ready for it? Can customers easily access it and can they afford it? Why would customers want to buy it? Is there a timing factor?
- What is your competition doing in this area? Can your business compete?
- Have you considered the possibility of user resistance or difficulties?
There are many methods available for evaluating the viability of your idea. You should select the criteria that best suit your needs, depending on the type of business you intend to undertake.
These considerations also raise the importance of undertaking market research.