The ABC of business viability

Will your idea be a bright one?

You have a great idea for a business? You think it’s an unexploited goldmine? Try this test with your idea; if it succeeds you may well be into something. If you fail this test, stop right now, or find another way to solve the situation.

Are you able to solve someone else problem right now? Don’t be a solution in search of a problem. Maybe they don’t know yet that they have the problem, that’s ok. But if there is no one, maybe you have a useless idea, even if it’s innovative (think Pets.com). You need to find people who have a need for your product or service at this moment. If it is to happen somewhere in the future, you are probably too soon (think Apple Newton).

Between wallets, what’s the distance? Or said in another way: Can you take the money in their pocket and place it into yours? Sometime there’s great ideas, but no way to profit from it without some complicated plan. Selling an awesome product to kids may answer a need, but if you need them to have a credit card in order for your business to work, it won’t do it.

Can you at least cover your costs? You need to breakeven, at worst. Ideally that’s the PROFIT! step, and the higher the stake, the higher the interest your project will create in the mind of investors or partners. The profit margin will also determine if it’s worth your investment in the business, or if it would be better to work at something else.