Evaluate Your Business Idea – Evaluating your spark
Startups.co.uk is a great website for learning more about getting started with your very own business. We find their case study stories inspiring as you get to hear from others about the challenges they faced in getting their idea to market.
One useful link we found was to a free Business Idea Evaluation Tool. Before you get too excited, this is not going to answer all your questions and instantly give you a green light on your idea. It is simply a set of questions to measure your idea against some common sense criteria. No humans involved and very generic. However you do receive a nice report telling you how your idea fares against logical categories. It highlights your strengths and weaknesses and gives you more questions to ask. You may surprise yourself (in a good or bad way)! However better to be surprised now rather than later.
Ultimately it is asking you questions you need good answers for. And if you don’t know the answer or your answer is insufficient – you know where you need to do more homework.
The tool can be found here (note you do need to supply an email address to read the outputted report):
To help we have recorded the key criteria below. Hopefully this will help you in your brainstorming and idea building sessions:
1) Market (Market Size, Customers Need, Competition, Barriers to Entry)
This is an analysis of the potential customers for your product or service. To exploit your idea financially, you need a sufficient number of customers to buy your product or service at a price that will give you a suitable profit.
2) Marketing (Additional Opportunities, Benefits, Sales, Repeat Purchase)
This section looks at how you intend to promote and sell your product or service so that it meets your customers’ needs. Your objective should be to maximise your sales.
3) Finance (Funding, Profitability, Production, Profit/Unit)
Here the potential for your idea to make you money is analysed.
4) Exploitation (Development Stage, Capabilities, Intellectual Property, Legislation)
This section looks at factors important for the successful commercial development of your idea.
Check out Startups for more info:
You might also enjoy:
+ The Startup Dictionary – Learning the Lingo #3
+ Learning From Other Startups – 6 Real Life Stories
+ Startup Myths – I shall not be fooled again by gurus
+ The Bootstrap Challenge – Walking the Talk
Where to next? Check out a random article.
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