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3 Ways to Know if It is a “Good” Idea

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As an entrepreneur, you likely have a new business idea every day, if not every hour. How do you know the difference between just another idea and one that can really be a winner? While certainty is pretty much non-existent when it comes to entrepreneurism, there are some basic questions that, if answered in the affirmative, could mean that the idea is one that has a chance at becoming a successful business.

Do You Know of Existing Demand?
If you have had the idea, it is likely it came to you through the realization that there is a demand for it. If this is not the case, it may be worth considering if there is a demand at all, or if you just thought of something that sounded good. Maybe you thought of a way people could make something themselves that they typically buy at a store. That is great, but is it likely there will be a demand for it if they can get it cheaper and of higher quality with less effort?
Can You Realistically Meet the Demand?
If there is a demand, is it at a level that you can meet realistically? Of course it is not a bad thing to not be able to meet demand to a certain extent. For example, if you have to back order or create a waiting list, it could be great for business. It could create an air of exclusiveness and even increase demand. However, if you try to meet demand too quickly, it could result in poor quality, and if you are unable to meet demand quickly enough it could diminish altogether. There is a fine line so be sure you know on which side of it you stand with your idea.
Is Financing an Issue?

Can you fund your idea? Is financing something that is even an option? Is there a possibility that investors could be interested? If you are going to have to buy a building, you will have to consider commercial real estate loan rates. If you do not have collateral you will need to look for unsecured business loan lenders that offer start up unsecured business loans.

This article was originally published by Biz2Credit
Published: December 3, 2014
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