Business ideas are easy to generate. What's more challenging is separating the ones with merit from the ones that sound good but are ultimately unachievable. Here are a few ways you can determine if a business strategy is promising or simply a pipe dream.
- Reality vs. fantasy. Theory and practice are two different animals. An idea that looks good on paper can fall apart when tested in the real world. One way to determine if business ideas have potential is to consider the practicalities involved with bringing those ideas to fruition. Do the ideas work within existing real-world frameworks, or does implementation require fantastical circumstances to succeed? In general, an idea that requires extraordinary means to be successful is probably one that will only do well in daydreams.
- Evaluate the foundation. Promising business ideas do not form in a vacuum. They are usually built on firm foundations of facts and previous experiences. For example, the inspiration for tablets arose from the overarching idea of mobile devices, a demand for which had already been established by the popularity of cellular phones and laptops. If the idea is not supported by evidence or existing concepts, it's probably more of a wish than anything really worth pursuing.
- Is there a market for it? A good way to separate quality business ideas from fluff is to see if there is a market for it. Conducting market research accomplishes several things. It confirms there is, indeed, interest in the product or service. It also provides clues about who your target market is, which can make selling the product easier when the company is ready to launch. Market research doesn't have to be limited to research and development, though. You can use those same techniques to determine if changes in the company's business processes are needed and how well those changes are likely to go over with employees and business partners. Good business ideas fulfill needs, and you can be confident you have a great one on your hands if there are people clamoring for it.
- What do the experts say? Experts make it their business to know the ins and outs of their fields of interest. Getting feedback on an idea from a relevant expert can help you determine whether it is solid or not. In addition to evaluating the potential of the specific idea, an expert can provide insight into what it would take to implement it. With that information, you can decide if the business strategy is something you want to invest in.
As you gain experience evaluating business ideas, you will eventually be able to tell right away if an idea is promising or unattainable. Remember, there are exceptions to every rule. Consider each idea carefully before tossing it aside. In other words, be certain you're not throwing away the next big thing.
(Photo courtesy of freedigitalphotos.net)
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