Some ideas are awesome, but may be
impossible to implement the way we imagine it, simply because they would be
extremely expensive that no one could afford it, or they would take extremely
long time, or need too much effort that seems impossible to compensate for, or
may be need a future technology that doesn't exist yet, or just can't be
produced on large scale that can make it profitable ….. or for any other reason
So, you need to test any idea you
have before going for it and explore how turn it to business
The questions you must ask yourself,
the questions you need to validate to make this idea a real business chance;
are called "Critically Important Assumptions"
The things that need to be "TRUE" in order for your business to work
-
These questions almost are related to financial
decisions
-
No specific questions across all businesses, you need
to figure out your own idea-related-CIAs
Here is a question to start with:
-
Is the amount of money you need to keep the business
going on + personal profit-margin <= the amount of money your no. customers
are willing to pay over a specific time range
Here you need to know 4 things:
-
How much do you need from the business?
-
How much are the customers willing to pay?
-
How many customers are needed?
-
For how long are they gonna stay paying you?
This is an example of a CIA, if the
answer of it is "NO", the business can't be successful and you need
to look for another idea
Part of the planning is to determine
and validate all the "critically important assumptions" before making
any further step toward converting the idea to a business
The more clearly you define these CIAs, the quicker you can test and validate your idea
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