Ah ha! Inspiration hits. And there you have it, clear as day – an idea for a new product or maybe even a new business that will make you lots of money. But,…is it really worth the time to create a business for it? Before you dive in head first and possibly waste tons of time and money let’s take a look at whether it’s worth it at all.

The first thing to look for is if there is any competition.

I know I’ve been guilty of this on more than one occasion. Some idea will hit me and I start listing off all the ways I can make money selling it.

Do yourself a favor and Google around to see if anything else exists that is similar to your idea. If there isn’t anything, keep looking and try some other keyword variations to be sure. If there is an existing solution, ask yourself how can your idea be better than theirs. Is it appealing enough to steal away customers from current competitors or new ones coming on the market?

What’s the problem you’re solving?

Next step, ask yourself, does your idea solve a problem? If it doesn’t solve a problem then it’s not likely to succeed. You need to identify the problem before you come up with a solution or you will have no idea how to make your new business work. Also, since most businesses solve a problem someone is actually having, you need to identify that particular person or group.

Is your idea unique?

You need to create something that not many others are doing at this time and for the current market. Is your business idea easily recreated? Is it a well known concept? Can others easily add your idea to their current offerings? How will you differentiate yourself?

What’s the product or service?

Is your idea a new product or service offering of some sort? Does it combine elements from different existing products and/or services into something new and useful? If it is an existing offering, how can you improve upon it. What will make people buy yours instead of the others on the market.

Is your idea compelling?

If the business you’re thinking of doing doesn’t sound exciting or interesting or good for someone, then it isn’t likely to succeed. The business must be appealing to someone in order for it to be successful.

Is there a market for your idea?

You must identify the types of people who would want this product or service. Think about what types of problems or issues they might have that your idea can solve. You need a target audience, not a mass audience.

Is your idea unique to your target audience?

Is there something that’s only attractive to them? For example, many companies choose to take advantage of the ‘Mommy Market’. Big name companies created products for new moms because there is a need to fulfil but more importantly they can be identified, targeted and marketed to both online and offline.

Does your idea have a way to make money?

If you can’t make money with your business idea, then don’t even consider starting it because you will quickly go broke. Make sure you have an online business plan and that the business can generate income.

What are your potential costs?

Costs are going to determine your timeline and if you’re able to make the business work. You need to factor in time, money and other potential costs for your new idea. How much will it cost you to develop your new product or service?

Okay you passed the test and got this far. What’s next?

Now that you have decided whether or not your idea is good and unique, are you ready to create a business around it? If not, would you consider developing the idea a bit more before making a move? Remember those two questions will help guide your decision.

It’s time to ideate.

Ideation or brainstorming a business concept is a principle that is used to generate ideas of what a company may produce. A business idea can be anything from developing an innovative product, service or introducing a new trend in the market. There are many types of brainstorming techniques that can be used with success, and each has their strengths and weaknesses.

At Founders Toolkit, we’ve compiled all the ideation tools you’ll ever need to brainstorm your ideas. Check out the full list of ideation tools and brainstorming tools and resources to help you draw out the best ideas for your product.