21 Questions To Help Evaluate The Potential Of Your Big Idea

From the new book, The Working Class Entrepreneur
Copyright©2009 by Wayne Perry
 
Having a great idea is the first step toward growing a great idea, but not all great ideas are moneymakers. Anyone can come up with innovative ideas, but your concept must also have the potential for immediate traction in this super competitive wireless world. If there’s no market for your idea then it’s a disaster waiting to happen, no matter how much you believe in the concept. Yet as long as you have a potential consumer market, you can overcome all the obstacles through shear will and perseverance, as long as you’re passionate. More often than not your idea will be a dud, but you can avoid potential disaster by asking yourself some very honest questions from the start. 
1: Is your idea really that good? Come on...be honest with yourself. 
 
2: Is there now or has there ever been anything like your idea before? Even if there is...be honest with yourself and make your idea different.
 
3: Your mom liked the idea but is there really a market for it? Do I have to explain this one?
 
4: Can your idea be patented, trademarked, or copyrighted? Do the research.

5: Can you come up with the right name and packaging that will satisfy consumers and retailers? This one comes down to inner belief and passion.
 
6: Is the market for your product growing in dollars and shares? Search the web and pound the pavement to see if your product has potential. If  someone else is successfully selling in the same market, your chances for success are greater.
 
7: How much real competition do you face in your market? Competition is a good thing, but you need to assess your odds as compared to the dominant competitors in your industry.
 
8: Is your idea recession proof? Your product needs to be something people will buy even in the toughest times.
 
9: Can you afford to get your idea off the ground and is it worth the capital risk? If your idea tanks, can you still cover your living expenses and regroup?
 
10: How will you effectively market your idea? Can you market your idea with your present resources? Don’t count on proposed investors unless a contract has already been signed and you have money in your bank account.
 
11: Are there any special government, insurance or union regulations that oversee your industry? Research all potential regulatory issues concerning your industry to avoid unforeseen pitfalls. Make no mistake - you will be putting out regulatory fires no matter how much you know, but you need to be prepared. 
 
12: Is your idea newsworthy on a local or national level depending on your market? The best advertising is free publicity and you must take advantage of any positive exposure you can get.
13: Does your idea grab the targeted consumer’s undivided attention? The only way to really know is to use your gut and test it in the marketplace, preferably the web.
 
14: What is the final profit you make after the end consumer purchase excluding all the expenses it took you to get there? 
Warning:  This will change all the time. This figure will include a variety of expenses including brokers, dealers, distributors, etc. You also have to account for personnel, advertising, slotting fees, shipping, manufacturing, and all other potential overhead.
 
15: Can you afford to succeed? Speaking from experience -- success is the beginning of the toughest times for many entrepreneurs. Can you really afford to succeed? 
 
16: Are you prepared to sacrifice the majority of your personal time to fan the flames of your idea for 3 to 10 years? This sounds like an dumb question, but it’s a reality for successful entrepreneurs. 
 
17: Do you need to outsource manufacturing and distribution in any capacity in order to make it big? While you can make a product in your kitchen as I did, you will save yourself lots of suffering by finding a reliable manufacturer who’s willing to work with you. Of course many new headaches come along with outside manufacturers.
 
18: Is the best domain name available for your idea or product, and can you develop a powerful web presence? Your internet presence is key when competing against large and small competitors in any 21st century industry. 
 
19: Do you have a business bank account, tax ID, merchant account and shopping cart so you can accept credit card orders via the mail, internet and phone? If you don’t then you better get them. 
 
20: Do you have a toll free phone number to accept customer inquiries and phone orders? You need to appear professional in order to attract customers, and having a toll free line is an inexpensive way to appear big. 
 
21: Do you have a solid communication system in place for customers? You need a phone answering system that up-sells customers and guides them through any potential "On Hold" situations. You also need an effective mail system so customers get the answers they need. Communication is the key and excellent customer service is the ultimate tool for great communication with customers.
 
Your list of questions can go on forever depending on the idea you’re working with and the complexities of your industry. If you’re going to achieve success with any entrepreneurial venture, you’ll have to ask yourself every question you can. Most importantly you’ll have to answer the questions honestly, regardless of your personal aspirations. Once you’ve asked yourself every question you can possibly think of, it's time to ask anyone else the same questions. Pick every brain you can and listen, but take everyone's advice with a grain of salt.
 
Once you feel you've gotten all the answers you can, then you have to honestly evaluate the pros and cons of your big idea based on those answers. If you’re still passionate about proceeding with your venture after answering all the questions honestly, then you have no choice but to take that leap of faith. Once you've committed to your leap of faith, the next step is to make a solid plan and start building the foundation of your dream. This is where the hard work begins. Now is the time to transform yourself from a working class dreamer into a successful working class entrepreneur. Now go ignite your flames and start fanning the fire. Good luck and Godspeed.