When someone walks up to you with a business idea, it is good to give them an audience when you can afford to and carefully consider what they are proposing to determine if it is something worth putting your money into. And while there is always a desire to support the person, perhaps because of your relationship with them, as a businessperson, your key question is "can this make me money?"
But that’s not the final check. Honestly, there are a good number of business ideas that can make you money; should you jump on every single one of them? No, of course. Financing a business is a major investment, and as with all investments, some prerequisites must be met/addressed before putting your money in. Here are 10 of them.
- A business plan backed with data
- Competence of the management
- The business model
- The business continuity plan
- Uniqueness of product
- Market viability
- Competition
- Risk factors
- Operation costs
- Profitability
Conclusion
The caution is that there are a million good ideas out there; whatever you decide should be something that resonates with you. If you don't know anything about the business, get educated on it. Ignorance is a priced tool in the face of greed. Don't get cheated out of your investment.
Also, always research and verify the authenticity of the data and facts presented. Don't invest in a sandcastle.
