In the last post, I spoke about evaluating a business idea to determine whether it's the next Pet Rock, or sinking like a rock.
There are 3 basic steps for determining top-level viability. You want to determine if this idea is reasonable before you spend months of time and potentially lots of money. There's no sense doing all that extensive research, building relationships with potential partners, and spending money on anything, if in the end, the financial results don't meet your needs. This is not a complete business or marketing plan. Don't go saying that Chris said this is all you have to do. I'm not saying that at all. It's merely a first round go/no-go evaluation. It's the first of many before you decide to launch a business.
These are the basic steps:
1. Understand the Market
2. Consider your Marketing Strategy
3. Calculate the Profitability & Cash Flow
If the profitability and cash flow don't meet you needs, go back and modify the business model and see what affect that has. If you can't achieve the level of financial success that you want, then abandon the idea and move on the the next one.
So these are the area's you'll evaluate, but what questions, specifically, are you trying to answer?
1. Market: Are there enough potential customers in the market?
2. Marketing Strategy: How will you convince those potential customers to buy from you?
3. Financials: Do the profitability and cash flow results meet your needs?
If the answers to these questions support your goals, then keep going to the next step. As you continue learning new information that changes anything significant piece of the evaluation, then run the three step process again. Keep moving forward with your research and evaluation, partnership building and business plan writing as long as the three questions continue giving you answers that meet your needs.
Connect with Chris on Google+ LinkedIn Twitter
There are 3 basic steps for determining top-level viability. You want to determine if this idea is reasonable before you spend months of time and potentially lots of money. There's no sense doing all that extensive research, building relationships with potential partners, and spending money on anything, if in the end, the financial results don't meet your needs. This is not a complete business or marketing plan. Don't go saying that Chris said this is all you have to do. I'm not saying that at all. It's merely a first round go/no-go evaluation. It's the first of many before you decide to launch a business.
These are the basic steps:
1. Understand the Market
2. Consider your Marketing Strategy
3. Calculate the Profitability & Cash Flow
If the profitability and cash flow don't meet you needs, go back and modify the business model and see what affect that has. If you can't achieve the level of financial success that you want, then abandon the idea and move on the the next one.
So these are the area's you'll evaluate, but what questions, specifically, are you trying to answer?
1. Market: Are there enough potential customers in the market?
2. Marketing Strategy: How will you convince those potential customers to buy from you?
3. Financials: Do the profitability and cash flow results meet your needs?
If the answers to these questions support your goals, then keep going to the next step. As you continue learning new information that changes anything significant piece of the evaluation, then run the three step process again. Keep moving forward with your research and evaluation, partnership building and business plan writing as long as the three questions continue giving you answers that meet your needs.
Connect with Chris on Google+ LinkedIn Twitter
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