Date: ongoing since 2011
Too often, an entrepreneur’s business ideas are fraught with emotions, illusions of grandeur, and leaps in logic that cloud our decision making abilities. The following way of evaluating business ideas enables one to make rational decisions about which idea or path to pursue.
My foray into entrepreneurship led to this ongoing list of business ideas, good and bad, ranked in order from high to low potential for success. Potential success rankings are based on various factors including market size, market’s willingness and ability to pay, manufacturing time, cost per unit, ability to differentiate product from competition, and level of personal interest.
Representing each factor is a question, eg. “Can I differentiate product from existing competition?”, to which the answer can be “yes”, “no”, or “maybe”, which are then translated to numerical ratings: “yes”=1, “no”=0, and “maybe”=0.5. The numerical “answers” to each question can then be added up into a total feasibility score, the higher score indicating higher potential for success.