The entrepreneurial spirit bites most people at least once in a lifetime in the form of a great idea. For a few, it bites regularly. So how do you know when the bite means starting a business versus seeking a good antibiotic?

Research, Research, Research

When a new idea pops up, the entrepreneur thinks they’ve discovered gold. That’s not a bad thing, but a quick reaction without researching reactions by target markets and the total viability of the idea spells a costly disaster in the making.

While your idea holds great attraction for you, knowing the marketability to potential customers demands a prototype, research for potential markets, test marketing and a manufacturing source that can develop your product cost effectively. This means understanding price points, competition, barriers to entry, product lifecycles and sources of capital.

Consider an Existing Business

Many times purchasing an existing business with great potential reduces the risk, especially if its’ target market fits with your new idea. If existing loyal markets of a business for sale provide potential for your new product, you win more time for bringing the new product to market. A good business broker helps you determine if an existing business fits your need. A going-concern may grant you sufficient cash flow for developing a new product prototype and test marketing and more importantly potential customers already loyal to you.