Use this Powerful Tool to Determine the Viability of Your Idea

Happy New Year. Welcome to the first post on the new year.

You’ve spent countless hours coming up with an idea for your business. Now that you have one, can you make money off it? Consider the following as you mold your idea in your head and eventually put down on paper.

• Is it something you are passionate about? After all, you will be spending a lot of time on it

• Can you realistically bring it to market?

• How much is the initial investment?

• Will it change your lifestyle? Are you willing to change your life?

• Where will the business be in five years? Ten?

Once you’ve answered these questions, create a SWOT analysis (Strengths Weaknesses Opportunities Threats). It should look something like this:

Strengths:

• Solves a problem

• Advantage of idea

• Expertise and credentials

Weaknesses:

• Limitations

• Lack of skills

• Costs associated with production

• Time it takes to produce product

Opportunities:

• Markets

• Growth potential

• Demand for product

Threats:

• Government regulations

• Established competition

• Barriers to entry

• Product could become obsolete

By evaluating strengths and weaknesses, as well as identifying opportunities and threats using this relatively simple, yet powerful tool, you’ll get an idea if it’s worth investing in your idea.