The authors of this article (link below), Karl Stark and Bill Stewart suggest you ask yourself 8 questions to really stress test your business concept. Actually, The Genesis Genie believes these are also worthwhile questions for organizations that have been running for a while and may be struggling in this economic climate. The questions are:
- Who are the ideal customers?
- Does it already exist?
- What is the customer doing currently?
- What is the all-in cost of the current solution?
- What asset or capability are you bringing that is unique?
- How will competitors react to a successful launch?
- What is the business model?
- How can you test and learn before building the entire structure?
- Is this cash viable on a stand-alone basis
That is: will you need to borrow / invest before you are in a positive cash-flow situation; or can you “boot-strap” it. That is can you survive without an injection of cash (and what is your contingency plan)?
- How are you going to persuade your customers?
Either to switch from their current solution or buy into a brand new concept.
The article is short and worth reading as the authors elaborate on each point together with some rationale.
Lastly, if you are serious about getting your business underway, you should have an objective audience listen to your responses to your questions and offer some challenge. Most entrepreneurs are passionate visionaries which is a wonderful characteristic – but can sometimes blindside us to issues that are contrary to our vision. This is a role that The Genesis Genie can play – mail or call us now for a no-obligation discussion of how we can help.