Do you remember the Pet Rock? If you do, you remember it was very popular at one point, but now it’s gone the way of many widgets and other business ideas that just weren’t sustainable. Not every business can be Facebook, but you can ask yourself questions to see if your idea is a viable one.
Here are some starting points.
Is your business idea a good one? Harken back to the Pet Rock. Ask yourself this:
- Is there a need for the goods or services you’re offering?
- How much competition is there?
- Do you have the skills and expertise to make your business viable?
- Are there any trends that could make your idea more, or less, viable in the future?
- Do you have the income to support yourself while you launch your idea?
Do you have the know-how to launch this business? Having an idea is one thing, launching is something entirely different.
- How will you make sales?
- What is your comfort level with providing customer service?
- What do you need to launch your product or service?
- Will you need to store product or find someone to make your product?
- Where will you market the product and find customers?
Can you make a living?
- If you’re not making a living, your idea is a hobby
- Know how much it costs to deliver your goods or services
- What is the anticipated demand?
- Where will you sell it? Online? In person?
- How long do you anticipate it will take to see a profit?
- Do you have a support system in place?
These questions will jump start your business planning process. They will also help you formulate your written business plan — a necessity for business success.