How do you Evaluate Business Ideas

evaluate business ideas

How do you evaluate business ideas? Is it an analytical, repeatable process and how much of it is based on your own personal feel or intuition?

I encountered this question as a request on my Quora inbox and I decided to share it here primarily because many people are struggling to get business off the ground due to “paralysis of analysis”.

Here is a short excerpt:

Listen to intuition first. Majority of the time, I will pursue an idea that I perceive to be viable then I invite the facts, logic and basic business indicators to guide me into finally deciding whether or not to take a leap and invest.

It is at the point of logical evaluation that I employ an analytical, repeatable process of checking on two major areas:

a) Potential demand of investment vs rate of return

b) Business fit to the overall objectives of my business ventures

In a nutshell, as an entrepreneur, the process of evaluating an idea for business is almost like the way a surfer evaluates which wave to ride – surfboard in place, leg rope fastened, eyes on the ocean and focus on the goal. When that wave comes, he/ she will know, “this is the one to take”

Read mord on how to evaluate business ideas

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