A business ideais a concept which can be used for commercial purposes. An Idea today is beyond this dictionary definition.
It typically centers around commodity or service that can be sold for money, according to a unique model. There are several methods for developing and testing a business idea. The ability to come up with a business idea can be transformed into a viable business, where ideas supported by feasibility and a business plan can then be sold to interested investors, firms, and interested parties for a lump sum or a management contract, or as agreed.
Business ideas, if introduced at the right time, when demand for such service or a product introduced by the idea is expected to surge, can lead to a very profitable business. Business ideas are always available through different sources; however, it is the application applied on these ideas, and executing in most efficient way makes all the difference in failure or success.
The following guide helps work out if your IDEA is viable.
Innovation | Depth of Market | Execution | Assessment of Risk
How real and innovative is your Idea and how strong do you believe in it?
Is the Idea scalable and sustainable?
Why someone else has not tried it? If tried what best you can learn to do differently.
Depth of Market
Is the market real and have you really understood the pulse of the market?
Who the customer is?
What do they want to buy?
What price are they willing to pay for that?
Will the survey make difference in understanding the market depth?
Who else is in this market?
What are they doing for the customers?
Are they supplying a similar substitute for what idea you have in mind?
Is this industry growing or shrinking?
Where: Is the location Ideal? (India Demographics is covered separately later)
(Location should be apt for the business depending on customer and business need)
Who: Is the leader with right team having right vision?
When: Is this right time to start?
How: Is the step towards execution well thought of?
Assessment of Risk
What are the different risks associated with business?
What are the entry barriers to enter the market?
How deep pockets do we have for Financial Risks?
Are you carrying any concentration risk? (Like Closed group of customers/Dependencies on one Person)
Armed with the answers to these questions you can have a good sense of if the idea is viable or needs more work or dropping completely.