Entrepreneurs often come up with new and exciting ideas

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Module Discussion - Idea Attractiveness

Entrepreneurs often come up with new and exciting ideas; however not every idea is worth pursuing. It is important to determine if ideas are worth pursing before resources are spent on developing them.

For your discussion, what are some of the red flags that would suggest that the financial attractiveness of a proposed new venture is poor? Which of the red flags that you identified would suggest that a proposed new venture isn't realistically feasible?

By Brockman

One big red flag for me would be if a company has a small target market, or plans for a target market that doesn't make sense with their product. By this poor planning the odds of being financially successful would be very limited. A poor business plan could also indicate that financial success may not happen. By having a business plan that hasn't been thought out means that the person who owns the company or is thinking of opening it hasn't put in the time and effort one would want from someone in that position. For me either one of these could be major red flags. However, I have to say the target market to me is the one that would be a big indicator of a company who would not make it regarding a financial outlook.

Reference no: EM131855646

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