How to Evaluate Business Idea?

1. Ambition to make big, to earn big, to prove big
2. Individual experience and expertise in a given area
3. Investment opportunity
4. Campus driven
5. Inspiration by a colleague or a friend to join him / her
6. Trying situation – Job lose owing to any of several reasons
7. Family tradition
8. Any abrupt event that lead to self-employment

However, the very first and the most difficult stage in the journey of entrepreneurship is freezing the very business opportunity for the proposed venture.  The opportunity could be related to service sector, product manufacturing or so.  The generally accepted approach and the best practice at this juncture is going for ‘market research’ on the opportunity, unless the business offering in question is not a job work for some other business.  Considering that the market research recommends the business opportunity, you may go ahead with further positioning in just 2 steps.  Each step, however, is very comprehensive and process oriented.  I have drawn the whole approach into one page document placed below as an image.

Click on the image for a larger view:

How to freeze a business opportunity

The item ‘A’ in the picture presents you two opportunity areas i.e. Product and Service.  The next item ‘B’ contains important parameters to be determined for the product or service offering.  This is the stage where you actually understand what exactly your business is.  This clarity is indispensable in letter and spirit for every further move in your stride.  Considering that you are ready with the plan and process related to item ‘B’, you will move to item ‘C’ which tells you the next plan of action to market your product and conduct your business.  The item ‘D’ is the value what you achieve and the return you gain out of your business investment.

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