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How Do I Know My Business Idea Is A Good One? 4 Ways to Tell

Are you wondering if you could make a killing by launching your idea for a business?  If so, you probably want to know how good the idea really is but may not know where to begin.  We've got the answers right here.  Read on to learn 4 ways to tell if you should proceed with your idea.

  1. Is Your Idea Unique?  Chances are good you have a restaurant location in your neighborhood that's changed names and ownership many times over the years.  That's because the restaurant industry is historically a tough one to succeed in—with so many food service competitors, it's difficult to stand out.  Which brings us to your idea—is it unique?  Is it something that others can easily copy?  If it can be easily copied, can you get patents and trademarks to protect it?  Successful ideas bring copycat competitors so ideally, your idea is one that's unique and difficult to imitate.

  2. Does It Solve a Problem?  Some of the most successful business ideas solve unique problems.  If you've identified a problem—and developed an innovative solution—consider that an indication your business idea may be worth pursuing.

  3. What Do People You Trust Think?  Have you shared your idea with people you respect and asked for their honest feedback?  What do they think about it?  Is it a product or service they'd be interested in?  Why or why not?  By gauging people's reactions to your idea, you'll be better able to assess its likelihood of success.

  4. Will People Pay What It Takes to Bring Your Product to Market?  You don't want to develop a $20 product to fix a $1 problem.  Try to determine roughly what it would cost to make your product and what you'd have to charge to make a profit.  Use this information to determine whether the projected price would be too high for the average consumer.