Business Ideas: Good? Bad? What Makes a Good Idea?

In theory, there a number of things that factor into whether a business is successful. Everyone is searching for a good business ideas, but ideas can be perceived as good or bad. The more important and more significant factor for success is execution. This will make and break a business.

What factors make a good idea good versus a bad idea bad? What is it that can make and/or break a business idea? Good business ideas are comprised of three critical components: niche, value, and scale.

  1. Niche: Does your idea have a target market? Try to get as specific as possible.
  2. Value: Would the people in your market pay for this item or service? Would they pay how much you are charging them?
  3. Scale: How large is your market? Can it be magnified broadly after you’ve saturated your target market?
As the answers to these three questions are yes, a business idea can be classified as “good.” Of course, poor execution (poor vehicle, poor business model, etc.) in the business idea can make a poor reflection on the business idea, but it does not necessarily make the business idea bad. If, however, an answer to any of these questions are no, then I would feel like it would be a poor business idea. If you’re building a business where there is no need for the product and/or the product has no value, then regardless how well you execute the idea, you will not succeed.

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