When testing your business idea

Section 3 : Rigorously examine the economics

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It’s certainly good if your test market expresses sincere interest in your idea, but if you can’t make it work financially then it may not matter. Decide critically what it will take to realize your vision, both in terms of capital and available talent. Be conservative in your estimates. If the barriers to entry are too steep it may be that the idea is impractical. It could also be that the timing is wrong. Don’t abandon the idea immediately, but certainly don’t rush in.

 

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