Assessing Your Business Idea

Get To Know Yourself

Evaluate whether or not you are ready for entrepreneurship.

You need to explore whether or not you have the necessary passion, skills, and experience to run a business and if you do not, learn how to get these skills. One way to evaluate your readiness is to do a self-assessment.

A self-assessment is an inventory of your previous education, training, experience, skills, knowledge, and interests. It helps you discover what you are good at, what you need to improve on, and what kind of business might be a good fit for you.

Successful entrepreneurs make an effort to recognize their abilities and weaknesses. Will your business allow you to make the best use of your skills? Do you know how to improve your weaker skills or how to hire people who are strong in your weak areas? Can your business afford to pay another person?

If you think you would like to open a business, it is important to consider:

• What you like
• What you do not like
• What you are good at
• Areas you need to work on

 

Business Ideas

Several factors influence the success of your business including you as the entrepreneur, your finances, and factors outside of your control. However, one of the most important factors is your business idea.

• You have an innovative product or service that does not already exist in the marketplace
• The product or service already exists, but you wish to deliver it in a different way
• The business already exists, and you want to purchase it and expand on the existing idea
• Each of the above ideas has value, and potential for success based on your passion, skills, and experience. You need to decide which is right for you.

The Fit Between You and Your Idea

A good business idea must be suitable for you to make it work. Success in business requires a combination of desire, ability, and a good market for your product or service.

• If you have desire and ability, but find your market is too small to turn a profit, consider changing your business idea to a hobby rather than a primary source of income
• If you have the desire and a great market but lack business skills, consider that you may need to train or to hire people who have the skills you need
• If you have the ability and a market but no desire or motivation to run your business, your business may fail

 

As you generate business ideas, do not limit yourself. An idea that seems impossible may eventually lead you to a good opportunity. So as you generate ideas, keep your mind open to all possibilities. Individuals often start businesses in a field that they know well. It is good to explore alternate ideas and perspectives as you determine the right opportunity for you. Once you have decided on a few ideas, use market research techniques to evaluate them.

Some Questions to Ask Yourself Before You Start Your Business

• Is your business a new idea?
• If others are already operating similar businesses, what is different about yours?
• Do you have any cultural experiences that are an advantage to your business?
• How do you best set up your business to generate the most profit possible?
• Is there a way to ‘test market’ your business?
• What do you need to do to make your idea a reality?
• Is there an existing business available for sale that matches your idea?