How to check out a business idea or opportunity using these streetwise detection secrets

Photo credit: Unsplash, Rowan Heuvel
Photo credit: Unsplash, Rowan Heuvel

I’m going to be blunt.

I have a strong feeling towards business guru advisers who claim that you can make money from new business ideas.

They lure you into their “business opportunities” but leave out parts they don’t want you to know.

They’ll even give you a list of business opportunities that they claim are “hot” or their “Top 10”, whatever that means.

What should you do when presented with such half-truths and downright dangerous advice?

Become a detective. Like a sleuth, dig until you find out the truth.

These detection secrets will help increase your street smarts:

1 How much money is involved? Getting a business idea off the ground takes financial resources. New projects often cost 2 to 3 times more than you planned for.
2 How long will it take to turn your idea into a product or service? Count on things taking at least three times longer than your best estimate. Make sure that you have the necessary funds to carry your idea through even if you are doing it on a sideline or part-time basis.
3 How will it make money? Don’t fall in love with your ideas. If they can’t be turned into products or services customers want, you don’t have a business model or a business.
4 Does it make sense? If you can’t understand how your idea will make a profit, walk away. People get dazzled by the excitement of creating something new but forget about bringing home the bacon. It must make sense; it must make money.
5 Do you have proof of customer demand? Let’s face it, if you don’t have a customer, you’d don’t have a business. You’ve only got something that doesn’t sell. Test your prototype or sample product through actual purchases. If you make a certain target level of sales, then you can move to the next stage.

If you’re serious about investing your time, effort and money into a new business idea and want more ways to evaluate your promising new idea, I suggest you get yourself a copy of my book “Breakthrough Ideas”. It will provide you with a set of hard questions to ask yourself when thinking about setting up on your own even if your plan is only to create a sideline income-producing asset.

How do you choose which ideas to ditch and which ones to develop?

A man and a woman performing a modern dance.
A man and a woman performing a modern dance. (Photo credit: Wikipedia)

The Sadler’s Wells dance group, which runs three theaters in central London, pursues its innovation in dance through a careful evaluation process.

It scouts for promising dancers, invites them to develop ideas for new productions. The dance company gives them studio space and a small budget to develop an innovative idea and test it.

The next stage: artists, producers and theatre managers evaluate the raw idea in the studio. If they believe it has strong potential, the company gives more money to develop it into a show and it premieres in their smallest theatre. Should the show become a box office success, the company puts it on in their main theatre. This dance company innovation pipeline for selecting new shows is exactly the same as for evaluating ideas for new products and services. Continue reading “How do you choose which ideas to ditch and which ones to develop?”

Why you need an effective idea-to-launch system

Feedback (song)
Feedback (song) (Photo credit: Wikipedia)

Coming up with ideas is often said to be the easy part.

Do you really believe this?

How many ideas that you come up with in the normal course of your everyday experience have legs?

The new business idea process focuses on idea generation. Why is this? It’s because you need a large number of ideas to ultimately find a winner. Continue reading “Why you need an effective idea-to-launch system”