Determining The Viability of Your Idea

How do you validate your idea to determine whether it can be a business success and help you achieve your personal and professional goals as an entrepreneur? There is no magic formula, but there are certainly ways that you can have a better sense of whether your idea has legs.
Test your idea against at least two variables. First, financial, to make sure this business makes economic sense. Second, lifestyle, because who wants a successful business that they hate? Answer the following questions to help you outline your company’s potential. There are no wrong answers. The objective is simply to help you decide how well your proposed venture is likely to match up with your goals and objectives.

“Take the time understand different aspects.” 

Financial:

  • What initial investment will the business require?
  • How much control are you willing to relinquish to investors?
  • When will the business turn a profit?
  • When can investors, including you, expect a return on their money?
  • What are the projected profits of the business over time?
  • Will you be able to devote yourself full time to the business, financially?
  • What kind of salary or profit distribution can you expect to take home?
  • What are the chances the business will fail?
  • What will happen if it does?

Lifestyle:

  • Where are you going to live?
  • What kind of work are you going to be doing?
  • How many hours will you be working?
  • Will you be able to take vacations?
  • What happens if you get sick?
  • Will you earn enough to maintain your lifestyle?
  • Does your family understand and agree with the sacrifices you envision?

Taking the time to validate the viability of your idea is a critical step in being a good entrepreneur There is nothing wrong with deciding not to pursue your current idea because it does not seem to be compelling enough. It is better to do that than to move forward on a journey that will fail.

Follow Us on Social Media

Where do you go for answers?

Try It for Free

Our Learning Community is the one stop shop for the intelligence you need. Instead of countless hours searching for answers, we’ve organized what you need to know across all of the business and personal issues you face. You’ll get answers from 100s of learning modules, tools and templates, vendor reviews and a vibrant community of your fellow entrepreneurs. Try it for free!

Share The Lonely Entrepreneur