In the title I used word “potential” which is very commonly used by the people. To be more specific I need to add that it refers to business potential.
A good decision whether to get engaged in the project has to be based on the proper evaluation. Various people may approach it differently but in principle there are 5 areas which you should check to verify if there is a chance that the idea develops into a business.
The pillars are:
- Business & Legal aspects
Based on the results you can make a recommendation on what decision should be made regarding the project. What has to be stressed is that there’s no universal approach towards parametrization of the evaluation process. This is because in various areas of business activity the approach to a specific aspect of the evaluation results might be different. As a good example of such situation let me refer to IT sector. In a number of fields of industry due to various reasons you need to have patent protection for your invention. However, in IT it’s very difficult to get a strong patent. Very often people secure their business by “closing the code”, which basically means that they compile the code to the binary executive file and make it secret. That is why in this sector situation of not having a patent is not a big deal and thus IT project which doesn’t have a patent protection might still be assessed as a good business opportunity.
Each specific point listed above will be discussed in more detail later in the following posts.