Evaluating Your Business Idea FAQ

Questions:

• How do I evaluate and develop a business idea?
• What type of business should I start?
• Are there any types of businesses I should avoid?
• What are the benefits of starting my own business?
• What are the risks of starting my own business?
• How can I tell if my business will make money?

Answer:

How do I evaluate and develop a business idea?

• Determine if it's the right type of business. (To learn more about choosing the right type of business for you, as well as how to research and evaluate your business idea, read Start the Right New Business for You.)
• Use a break-even analysis to determine if your idea can make money. (For more information on performing a break-even analysis and determining the financial viability of your idea, see Will My Business Make Money?)
• Investigate business financing. (For more information, see the Business Financing FAQ.)
• Contemplate a basic marketing plan. (For more information, see Marketing Without Advertising, by Michael Phillips and Salli Raspberry (Nolo).)
• Write a business plan, including a profit/loss forecast and a cash flow analysis. (For more information on writing a business plan, read Business Plan Basics.)