3 Questions to Ask Before Pursuing a New Business Idea
Only experienced entrepreneurs know firsthand the sacrifices one must make personally and financially in order to launch a new business – and even then, more often than not, that business will fail. So before you try to rush your business along, take stock and ask yourself these questions:
Are you willing to give up everything?
- Are you going to work the 20 hour days? Are you able to neglect your family, friends and hobbies? Whether it’s hitting the gym for your daily stress relief or spending time with your newborn baby, everything must take a back-seat to your business during it’s beginning stages. This is a lifestyle choice not many people are willing to make.
Is anyone else doing it?
- Many first time entrepreneurs assume because no one else is pursuing a similar idea that theirs must be great. By the question here is, if the idea is so great, how come no one else is doing it already? Be wary of the ideas that are too original. Often times there are a number of factors you’re not considering that will explain why this great idea hasn’t been changing the world. For example, Google didn’t invent the concept of a search engine, but they were able to do it better than anyone else.
- Why are you going to be able to reinvent the wheel? What makes you so qualified and capable of taking a proven formula and making it even better? Do you have experience in this domain? Do you have any relevant connections? Are you familiar with basic business structure such as C or S corporations?
How will you monetize your idea?
- Lastly, providing you are able to answer all of these questions and are still convinced you have the right idea and the ability to execute it, the most crucial question you must ask yourself is: how do you make money from it? If you can’t figure this out, then having a great idea and the ability to execute it is meaningless. Take the time to figure out a monetization strategy before you initiate your development.