Five Sure Ways To Know If A Business Idea Is Right For You
by John-Paul Iwuoha and Dr. Harnet Bokrezion
A business idea is like a shoe. If an entrepreneur with the wrong foot size forces it to fit, it may end up a horrible experience. Many times, new businesses fail because the ideas and entrepreneurs behind them are the wrong fit.
This article provides you with a checklist of five basic rules you could use to test that great business idea you’ve been considering.
1. Does the business idea stir up a passion in you?
Passion is the defining trait of entrepreneurship. It breeds positivity, ambition and perseverance – the critical nutrients that will nurture any business idea to become a remarkable success.
Most people start a business and focus too much on the money that could be made. The truth is, very few businesses start making money almost immediately. Just like a baby, a new business needs to be taken care of until it can stand on its feet.
Do you have the patience, passion and belief for that business idea? Will you still believe in the business when you run into financial trouble? Will you love it enough to not be bored two years down the line? Is there some sort of strong connection you have with the idea you find hard to explain?
2. Will it benefit from your knowledge and natural abilities?
The best business ideas are those that can gain from your knowledge or natural abilities in the concerned area.
Do you have great organization and presentation skills? Are you a good leader? Are you comfortable dealing with people? If you are willing to learn and improve on the knowledge and abilities you already have, it will be a great thing for your business. The more the business idea fits your abilities, knowledge and temperament, the better!
3. Does the business idea suit your risk appetite?
Some business ideas are riskier than others. It’s usually safe to bite only as much as you can chew. How large (or small) is your appetite for risk? How much of your physical and financial resources are you willing to bet on your business idea?
Risk isn’t totally a bad thing. But it’s always a good idea to know how much of it you’ll be taking on with the business. Many entrepreneurs are often too distracted by the profitability of a business idea and do not take the time to consider the risks involved.
4. Are you in for the long or short term?
Why do you really want to start this business? Are you desperate for extra bucks? Or is the business part of your long term plan to become financially independent and secure?
An entrepreneur with a short term expectation is bound to be impatient and may not nurture the business well enough to reap the benefits. Even Facebook had to wait a full five years before it started making any money. You need to be sure you can wait for the rain to come!
5. Are you inspired to take action?
Business ideas will remain ideas until you take action. A business idea is no use inside your head until you bring it to life. Even if it passed the first four tests in this article, the idea still won’t be yours anymore if someone else beats you to it. You have to be inspired enough to start doing something about the idea. And fast!
Given the rewards that come with owning your own business, it’s totally worth all the pain it takes to find a great business idea.
What did your business idea score?