COVID-19 has caused numerous disruptions to our economy. Many are negative, but there are some positive distortions as well. In order to adapt, recover, and innovate, we have to carefully plan business moves and carefully consider key questions for a new business or idea.
Is THIS a business you should start?
The foundation of a brainstorming framework for strong business ideas is a consideration of whether this specific idea will be profitable and possible to grow. The four considerations are:
- Product – Do you have a product or service that people will want to buy?
- Capital – How much capital do you need to start the business and where will you get it?
- Team – Do you have a team that can do everything needed to succeed?
- Growth Strategy – How are you going to grow this business?
Is this a business YOU should start?
Once you evaluate the idea, the next step is to consider why you are uniquely positioned to run start it. While you don’t need to be a finance or accounting expert to be a successful entrepreneur, it is important to look at these factors:
- Skills – Do you have the skills to manage all aspects of this business or idea?
- Experience – Do you have experience providing this type of product or service, selling to this customer segment, or using this cost structure?
- Credentials – Are there any special certifications or licensing requirements for this idea?
- Capacity – Do you have the physical, human, and financial resources to make this happen?
Is this a business you should start NOW?
Even if your idea is amazing and you have everything you need to start, sometimes the timing isn’t right. A good way to evaluate your idea is to see how well it matches all 8 points. If it seems like it fits, then you know you have the green light to start formulating a business plan.