Many of us have an idea for a business, some of us have a few too many. So how do we quickly eliminate the bad ones and refine the good ones in to something that is worth starting a business around?
For the most part an evaluation will focus on the market, the customers, the business model, and the competition. There are many ways that ideas and be evaluated and the links below cover some of them and some of the important questions you should be able to answer for any business idea. The articles below offer some details and strategies for evaluating you own startup ideas.
Is the value in the idea or in the execution? Or is the idea a value multiplier to the execution? Ideas are just thoughts without form. Creating that for take a massive investment of time, resources, and sweat equity. That execution can create a lot of value, but execution without a good direction does not create much value. Its when a great idea and great execution come together that great companies are formed. The following links delve a little deeper in to the idea-execution connection and valuation.
Experienced professionals and entrepreneurs have a diverse set of opinions on the best way to evaluate an idea and execute on it. Learning from them (whenever possible) is the best way to avoid the same mistakes in your own business.
Russell Siegelman, an active angel investor, entrepreneur, on evaluating a business idea at a Stanford Alumni Entrepreneurship Bootcamp
Evaluating Ideas Panel at the Entrepreneurship Conference at Stanford 2010
Additional Resources discussed during ECC #2:
Interviews with Entrepreneurs and Investors
Eric Ries – Entrepreneur, Author, Investor