How to choose between 2 business ideas?
There is no fit-all-answer on this question. Below am sharing a few methods which will help you to decide on how to choose between 2 business ideas.
Many women entrepreneurs struggle with contemplating between business ideas.
Having too many ideas can lead to a decision paralysis. And if you don’t pull yourself out of this status quo, you will end up procrastination, contemplating, overthinking and missing out on all those opportunities which you would have by now come across, had gone ahead with one of those few business ideas.
Why should I work on one business idea at the time?
Any engine needs a certain mileage before it reaches its peak performance. Same goes for business. You must give it time, energy, full focus and attention – at least in its early stages.
I like to use the following comparison: Imagine you have to move two rocks which you have to bring from point A to point B.
You have two options:
You can either start rolling the 1st rock and you keep pushing and rolling it until you come from point A to point B. Then you can return to the start and start pushing and rolling the 2nd
You can push 1st rock, make it roll, then head over to the 2nd rock, push it forward, then go back to the 1st rock and give it another push, etc.
How would you prefer to roll your 2 rocks?
Eventually, the end result would be the same – both rocks would reach the point B.
The question is: Which method would tire you more? What does it feel to you more satisfying?
And, how much time would you lose going left and right between these two rocks, if choosing a method B? This is why I like to use this analogy as it nicely explains how the juggle and hustle looks like, when you work on starting 2 or more businesses at the same time.
You can always work on two (or more) businesses at the time, BUT you have to be OK with the fact that you will make a slow progress with both of them.
Methods with which you can choose between 2 business ideas
- Trust your gut
- Evaluate with words
- Evaluate with scores
Trust your gut.
If you have a strong intuition, the chances are that you can literally feel in your gut which idea would be a good fit and which one simply wouldn’t.
You can achieve that with a few simple questions. These questions, like your intuition, are specific to you, your personality, your lifestyle, level of knowledge, interests, aspirations etc.
However, even if your intuition is your strength, you can always use either one of the two below methods to confirm your findings.
Evaluate with words.
1. Write pros and cons
Keep it simple. Take a piece of paper. On the top of the page write your business idea and then draw a line, so that you get two columns. Put all the pros on the right side and cons on the left side.
Write down anything that you can think of.
For example: which skills do you already have, and which ones would you have to outsource, how long would it take you to start this business, how cash intensive and profitable would it be, how easy would it be for you to find your first buyers, do you have any advantage in front of the competition, how much competition is there, can you scale this business?
These questions are just a few examples. Once you sit down and start writing, you may end up with a completely different set of questions and answers.
Once you write it all down, compare both ideas and evaluate which is a better fit for you, in this moment.
2. SWOT analysis
Another way of evaluating business idea using words is SWOT analysis.
You again take a piece of paper and you draw 4 squares. These 4 squares represent:
S – Strengths, W – Weaknesses, O – Opportunities, T – Threats
(This is a pretty standard methodology when it comes to evaluating any kind of a situation, product development, go to market approaches etc. If you are not familiar with it, don’t worry, you will find samples of what your strengths, weaknesses, opportunities and strengths may be in the workbook underneath).
Evaluate with scores.
Get clear on your goals (Evaluate each question below with scores from 1 to 10)
- Is this something you are extremely knowledgeable about?
- Is this something you would like to keep learning about?
- Do you see yourself being in this business 5 or 10 years later?
Is your business idea solving any problem? YES – 10, No – 0
How likely are potential customers looking to solve the problem you are about to solve? (Evaluate each question below with scores from 1 to 10)
Is this a burning desire or need? (multiply by 2)
Market evaluation (multiply by 2)
- Is there a demand for this business?
- Is competition healthy and thriving?
(Evaluate if this industry is still growing on is it on the incline)
Would you be able to create a passive income stream within this business? YES – 10, NO – 0
And, my final advice
Once you decided which idea to go ahead with – do not look back.
Promise to insist in this chosen business long enough to bring in those first and then sustainable results.
Grab workbook and quickly evaluate your business ideas!
I have created this workbook so that you can quickly navigate around given information and start evaluating your business ideas based on relevant questions and facts.
Let me know where I can send it to.
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