Top 3 Things to Evaluate Business Ideas
Posted on June 21, 2017
Hi, my name is Shawnee and I have Entrepreneur ADD, EADD for short. A lot of entrepreneurs I know have this same condition. They get like this every time they hear of a new business opportunity:
If I’m going to invest my time, energy and money into a business idea I’m going to make sure it’s going to at least get me closer to my dream lifestyle. In case you’re curious, my boyfriend and I’s dream lifestyle is a little unconventional. Our goal is to home school our future kids and live 4 months in Minnesota, 4 months in Miami and 4 months in a new city or country of our choice, EVERY YEAR. A critical piece to making this dream come true is how we make our income to pay for this lifestyle. Here are 3 big components in evaluating ideas to invest in:
- Scalability: Josh Kaufman describes this perfectly in The Personal MBA, “[Scalability] is the ability to reliably duplicate or multiply a process as volume increases…The smaller the level of human involvement, the more scalable the business.”
- Outsourceability: This is the premise of the book that changed my life, Four Hour Work Week. The goal is to have a business with the least of amount of human involvement as possible, and then to be able to outsource (hire and train someone) to do the mandatory stuff.
- Benefit to Others: How does this product or service help others? The higher this score, the more money it’s going to make through any economy. The goal is to become invaluable to your customers so they’ll keep coming back and referring more customers to you.
Secondary things to consider:
- Exit strategy (Would I be able to sell it?)
- My passion/curiosity about it (Would I be learning and moving towards a direction I want to move in?)
- Timeline (How long for ROI?)
- Solo or partners? (Do I know the right people?)
- Startup costs?
Do you, or anyone you know have EADD?