There is one thing that almost everyone in the world has in common with each other, that we all have a few good ideas and maybe even a dream or two we’d love to test out because we just know it would be the greatest idea since sliced bread. Of course, the really good ones are real gems of innovation and creativity like Google or the iPhone. And then there are the amazingly not so good ones like the “Segway” which even though start out good or even great, and eventually take a short nosedive off a high cliff, or in reality never make it past the “Have I got a great idea for you!” phase.
Let’s just say you think you actually have a great innovative idea that may be worth turning into a company. After you have a chance to get it started, it might even generate some revenue and decent positive cash flow. The question becomes “How do you decide if that idea is worth pursuing?”
Understand that most creative minds and entrepreneurial-types constantly have several business ideas filtering through their mind at any given time. The key is they are able to filter these results and limit pursuit to those ideas that have the greatest probabilities of being most successful.
As the filtering goes it may be a good idea to cancel an idea if there is no valid target market, if there is no feasible revenue stream, enormous barriers to entry, no way to compete on the same level with any competition you may have, or if you enter the market too late in the game to ever have a chance to catch up and be profitable.
You should be aware of and avoid common pitfalls including starting a business or trying out a business idea just because your friends like the idea. Keep in mind that your friends are your friends, and most likely biased in your favor no matter what, and ready to support you. But keep in mind that also when it comes time for them to dig deep in their pockets, make the purchase and put their money where their mouth is, they just may not like the idea as much as they originally did.