Step 2: Evaluating the Idea Let's face it, not every idea is a good idea. There are so many ideas out there that have sounded good to the businessman at first but we later realize that it was not such a great idea. Here are a number of questions to ask yourself in order to save yourself time and money.

Would you buy it with your own money?
Honestly, if you had the money, would you buy whatever you are trying to sell? Be sure to be honest about this because if you would not buy it, you should not sell it. It's important to have confidence in what you are trying to sell to others. Besides, if you are not willing to buy your own product, chances are that nobody else will.

1. Start over and think up a new idea.
2. Find an "edge" you can have over your competition.

If you choose the second one, you will need to be creative. After all, you will be vying for the same customers as the other companies so you will need to find a way to make your product/service stand out. You can do this by comparing all of the similar products and asking yourself "what do these lack and how can I improve on it?"

Can I make money from this?
Lots of entrepreneurs think up a great idea but fail to think whether or not they will be able to earn a profit from it. You will need to decide how much your product/service will cost to produce and then decide what you think the public would be willing to pay for it. If the price you sell it for is more than what you plan to pay to produce it, continue on with the rest of this section. If not, you should reconsider your idea or find a few ways to cut costs.

Ask for someone else's opinion
Find someone you can trust to give his or her honest opinion and ask them what they think of the idea. You can ask your friends and parents but they will likely just say what you want to hear because they want to encourage you. What you need to do is find someone who will be completely honest. Try asking a stranger. This will help you get an idea of what the general public will think of it. If they do not like the idea, ask them what you might be able to do to improve it.

These are just a few of the questions you can ask yourself. Be sure to actually do this step and do not just skip it over. You may come back to regret it later on when you realized you overlooked something simple.