Now that you have a business idea, you need an assessment process for your business idea to select the best ideas as efficiently and effectively as possible. This process needs to be standardized and scalable so it can be applied across your business. This process is called the idea evaluation matrix, an assessment process for your business idea to help you select the BEST idea as efficiently and effectively as possible. The idea evaluation is standardizable and scalable and incorporates the evaluation of the business idea with key factors. Key factors are attributes or characteristics of a business that will help you determine if the business idea has a higher likelihood of success. The idea evaluation matrix process will help you determine which business ideas will be more successful and what areas of the business idea need more research or refinement. You can screen and rank each idea based on the most important key factors.
A great idea evaluation matrix incorporates as many key factors as possible:
- How much will the idea cost to implement and run?
- What impact will it have on your business and bottom lines?
- How long will it take to implement?
- Does it align with your strategic goals?
Key factors or criteria can include:
- Time.
- Cost.
- Potential Impact.
- Monetary impact.
- How much of the business team is affected.
- Business critical (how important is the idea to the survival of your business.?)
- Ownership.
- Linked to strategic goals.
The idea evaluation matrix process includes the following steps:
Here is an example for a medical weight loss practice and a medical application. The business idea with the higher score is a more profitable business idea.
In addition, you also need to look at the business model. There are 4 different business model types. The best business model is golden goose while the worst business model is a labor of love.
When you are developing a business idea, you want to remember that you want to sell transformation not information.
Summary: Once you have potential business ideas, utilize the idea evaluation matrix to determine if the business is realistic, profitable, and sustainable. That idea is what should be developed into a business.
Call to Action: Create 3 business ideas and evaluate them via the idea evaluation matrix and determine which idea has the highest likelihood of success. Do more research about that business industry online. Start researching your competitors and your audience.
Share in the Facebook community your business idea and any issues or questions you have about your business.
Summary: There are questions that you can ask yourself to determine a business idea you can possibly develop and implement. A business is providing a service or product that solves a problem or pain point for a target audience. The idea solves a problem with convenience, ease, or efficiency. Focusing on developing a skill or utilization a certification you have can be developed into a business; a hobby or passion you have can also be a potential idea.
Call to Action: Use these questions to develop business ideas. Once you have at least 3 business ideas, you will need to analyze if that business idea is sustainable and profitable in the current market.
