How Business Ideas Work

http://money.howstuffworks.com/biz-idea.htm

First, you need skills in finance, marketing, management. If you don't have it, obtain from outside help. The only thing you must have yourself is determination and energy.

Where are your strengths

Here are some questions to consider in this time of self- and peer-based evaluation...

• What do you like to do?
• What do you have experience doing?
• What do you think you are good at?
• What does everyone else think you are good at?
• Do you have special education in the area(s) you are interested in?
• Do you have the right mindset to run your own business? (i.e. Do you have expectations of challenge, hard work, long hours, and little money to begin with?)
• Are you willing to put in 60 hour weeks to make your business work?
• Are you resourceful?
• Are you a high-energy person?
• Are you a dreamer or more down-to-earth?
• Can you bounce back from criticism and rejection? (More than just a few times?)

Finding business ideas that fit your talents

Any list of business ideas you find will basically boil down to three types of businesses. Those 3 business types are:

1. Manufactured products that you build and sell yourself
2. Distributed products or services that you buy wholesale and then resell at a higher price
3. Services that you provide

For those three business types, there are typically four possible strategies. The 4 strategies you might use include:

1. Inventing a completely new product for a completely new market
2. Inventing a completely new product for an existing market
3. Improving on an existing product and selling it to the existing market
4. Selling an existing product to a completely new market

Answers These Questions ...

• Is there a market for your idea?
• Does the market have money?
• Is there a lot of competition?
• Can you come up with the funds it will take to get the business started?
• Do you know how to market and sell the produce/service?
• Can you easily get the product or service to your customers?
• what is the best way to get the business started?
• Can you begin as a part-time home business, or
• does it require more manpower and space?
• Is a franchise possible or
• can you buy an existing business?
• Can you estimate the amount of income you can expect from each business idea?
• Do you know enough about the type of business or
• will there be a significant learning curve?
• How much time and money will be devoted to learning about the business?
• Can you afford to take that time?

Other deciding factors

• Your commitment (i.e. travel, commuting, relocating, etc.)

• Your family's support

• Zoning restrictions Your town planning office or City Hall can provide that information.

• Your willingness to seek outside help

• your life style - If you're a night person and hate mornings then you probably don't want to open a doughnut shop.

• personal satisfaction

Self-Evaluation Worksheet for Starting Your Own Business (Microsoft Word document)
Business Idea Evaluation Worksheet (Microsoft Word document)