Here are some ways to evaluate a business idea:
- Identify the problem: What problem are you solving, and is it a problem that many people have?
- Analyze the market: Consider the size of the market and the potential returns for you and investors. You can also conduct a market analysis by asking people in person what they think of your idea.
- Understand your customers: Create a customer profile and identify your target audience.
- Consider your competitors: Find out who your competitors are.
- Assess your talents and limitations: Consider what you’re good at and what you’re not so good at.
- Collect and analyze feedback: Get feedback on your idea and analyze it.
- Consider the price point: What price point would work for your product or service?
- Conduct a PEST or PESTLE analysis: Consider the political, economic, social, and technological climate that your business will operate in. A PESTLE analysis also includes legal and environmental factors.
- Consider the risks: Consider what could go wrong and what the downside would be.
