Before embarking on the entrepreneurial challenge, it is advisable to evaluate how viable our business idea is. It is not enough to identify the idea, it is very important to assess it in all possible aspects (financial, production, distribution, etc.) in order to know how viable the idea is in the market.
How to start?
1. DISCOVER YOUR STRENGTHS
What do you have or know today? You should think in general terms about what assets you have that make you unique.
2. ASSESS YOUR STRENGTHS
Strengths are considered to be internal elements, i.e. they come from within the company itself. Here we should include the strongest resources, skills, capabilities and talents that help you to have a competitive advantage over other businesses. Once you have identified the strengths of your business idea, select the top five or seven strengths that are most unique, have value to others and are closest to your mission. Then, discuss the following questions for each strength. Here are some of the questions you can ask yourself:
Is it different and distinct?
Who would value this strength?
How valuable is it, and are there other options?
How much is the market willing to pay for this strength?
Is this a long-term strength?
3. IDENTIFY OPPORTUNITIES FROM YOUR CORE STRENGTHS
After assessing your strengths, think of all the opportunities that exist for that strength. Opportunities are positive but external aspects, i.e. related to the environment in which we are going to compete. This includes how the business idea can penetrate the market, how it takes advantage of underexplored market niches.
4. ASSESS YOUR OPPORTUNITIES
After identifying your opportunities, select the top five or six opportunities and then analyse each question below to evaluate your promise in terms of ease of implementation, fit and profitability.
Do we have the right internal expertise and capacity?
How complex is the opportunity?
Does this fit with existing business?
Does this fit with our image?
What are the start-up costs?
What is the market demand and/or willingness to pay?
How soon can we expect a profit?
Based on this, you will be able to have an objective assessment of which opportunities are most promising.
Here are 4 key aspects that will help you determine how feasible your business idea is in today's market.
Verify the demand.
Study the viability of the business.
Analyse the Return on Investment (ROI) of the business.
Check how innovative the proposal is.
Not all businesses are viable. Success requires the right opportunity, the right timing and the right process.