You are thinking about starting your own business, but you are not sure whether it is worth the risk. You believe in yourself as the right type of person to become an entrepreneur, but you have some doubts about the business idea you want to launch. Is it really a good idea? The following questions below, originally published on Inc.com, may help you find the answer to this crucial question. The questions' author is Brian Hamilton, founder of the Sageworks company that successfully operates in the field of software development for financial data processing.
Are you using your personal experience?
The best business ideas are based on what we know and what we ourselves have experienced. No wonder Henry Ford was initially an enthusiastic auto mechanic or Bill Gates a programmer. A good business idea is based on your personal experience so you know what is missing or does not work properly in a particular field.
Do you have the necessary enthusiasm and knowledge?
Brian Hamilton says that the best entrepreneurs are enthusiastic about two things at the same time 1) they love doing business in general and 2) they love managing a particular company focused on something they enjoy. However, enthusiasm alone is not enough. It will help greatly if you start a business in a field in which you already have experience and you are expert in.
Do you know why you want to start your own business?
Why did you come up with the particular idea? Why is it important for you to succeed in this area? You need a clear vision of your business goals to drive you forward and help you overcome obstacles.
Are you entering a healthy market?
You probably cannot find a market that is one hundred percent healthy. It should, however, not be unhealthy. The market must offer you opportunities to grow, expand, and succeed.
Can you replace someone?
Your business idea should either outperform or completely remove existing inefficient entities from the market. Your task is to simplify the process existing between buyers and sellers in your industry. Your idea will be even stronger if you can eliminate a specific step, a specific profession, etc.
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