What are the basic criteria for evaluating and screening business ideas? Starting a business always begin with innovative ideas that entrepreneurs need to generate to achieve business success. Have you been working hard and hard for years? Oh, you are having difficulties in which ladder of business to climb?
Well, you never can tell maybe you are almost getting to the bottom, or even got near the apex top of the ladder. That doesn’t matter too much but the evaluation criteria for good business ideas to be discussed will vividly shed more light on which business ladder you are qualified to climb. So what are the criteria of a viable business idea?
1. Check the Business Capital
There is no gainsaying the fact that to kick start any sort of business, be it online or offline, the number one thing to look out for is the financial status and the available capital to incur in the business.
This criteria is better by far inherently personal and it depends on the ambition the entrepreneur is chasing after. After carrying your feasibility studies on factors such as equipment to be purchase, hauling, rendering of services or product delivering, advertisement and HR etc, Check your pocket to determine if you have the capacity to dwell in such business.
Prior to choosing whether or not an idea is ready to be part of your strategy, make sure you assess whether it has high chances of being implemented. Do ask yourself questions like, how much will it cost to implement? What are the other resources required? Is there any legal constraints? Big and good business ideas shouldn’t be ordinary dream, they must be realistic ideas that will create impact and move your organization forward.
3. Check the Sales Assessment or Justifiable Business Model from the Inception
This criteria for a good business idea is trying to project an ideal idea of having an insight on various way sales have taken place and the necessary places that might be needed to improve upon.
This also portray the idea of understanding how the propose business will earn and generate money. Statistics have showed and proved that 90% of all sort of businesses do failed in its first five years.
So, understanding and having a valid and justifiable business model of a gross and net profit margin from the very start is an antidote to ruin, hence this made it a criteria for a good business idea.
To generate a great business idea, check if the idea really fulfills the practical aspects of it. Look if the business idea is utilitarian, if it does answer correctly some particular problem or if it is going to meet some major market demand. Even if it does, is it that the business idea could find a perfect market niche? The usability, marketability and practicability of any idea are crucial. Do take note.
5. Check the Business Market Data and Competition
Why don’t you consider the market data and carry out a research to check if the business idea to choose is highly saturated or less patronized. Do consider going for business where large players don’t fill strong positions.
Also, researching and analyzing the price per points of your to-be competitors will also aid and give you more insight into the reason why people might be seriously patronizing a particular good or service.
Be wary of going into businesses where numerous players are being funded well or where the present business person has a certain sustainable advantage. For instance, if a business of your choice is selling exclusively via independent retailers, if possible, you might grow a market share by venturing into mass retailers.
Ability to defend firmly is another criteria of a good business idea. Will you be able to defend your idea in the marketplace? Ask yourself: How will your idea stand upright to these challenges?
How will customers react about the idea? Will there be need to persuade them? Will the prospect understand the benefits of the business idea to them? How will the business competitors react? Ability to proffer solution to these poised questions is very essential while generating business idea.
This is usually the bottom line which everyone focuses on. Competing business ideas are usually ranked in accordance with the earning they perceived potential. This criterion for business idea is very imperative and never should it be over emphasized.
Check for business that could be systematized, developed through good marketing with massive target audiences that would enable the whole exercise to prove that it worth the effort.
Your scalability means you have glare leverage. You don’t need to do the work alone and if you do, your efforts will surely be multiplied significantly.
Easier said than done, having read the above criteria for business ideas, it is up to you now to plan how to sail through the market with the brilliant idea you’ve chosen to pursued.