Last week, we discussed ideas and how to determine if they are good business ideas or not. I have included most of what was discussed in class and added a few more things that will help to clarify and enhance what was discussed. In this lecture, we look deeper into the different kinds of ideas and how we can determine if they are viable operationally and financially.
In this lecture, we also introduce you to a process we use at emagine called Idea Proofing, which allows us to break business ideas down into relevant components to determine how viable they are and whether we want to be involved. Idea proofing is a simple concept to grasp but very difficult to implement and use because it requires objective understanding, industry knowledge and market research. All things that the entrepreneur should include in their business plan, but as an evaluator, you must also have the knowledge to know what is correct and what is colored with emotion.