Does Your Business Idea Suck? Take This Free Quiz to Find Out

Everyone has that idea mulling in the back of their head. That little "what if" that spurs a daydream of their very own business. Whether it's a medical app, a clothing store or a pizza shop, the most important step before committing to an idea is making sure it's viable. Or, to put it bluntly, whether or not your idea sucks.

Deciding if your business idea sucks goes beyond examining the idea itself; it's about understanding your situation, the market, the customer, the timing and your ability to follow through with the idea. Here's the ultimate test to see whether or not you're ready. Once you're finished, don't forget to scroll down and get the guide to your results.

What Does Your Number Mean?

71-85 points: Kudos, you have thought through your idea pretty darn well and seem to be relatively prepared to start a business. The key here is to never stop learning. Take some time to review any answers you had trouble with below, and be sure that you communicate constantly with your advisors and potential customers.

55-70 points: Here's the good news: you have vetted your idea more thoroughly than most people. You understand a lot of the basic steps you need to take, but there is still some work to be done. Take some time to review each of the questions where you missed points or see gaps in your knowledge below. Give yourself a little more time to make sure you're mentally and financially prepared, and be sure that you have vetted this idea fully.

55 points or less: Here's the thing: You may have the greatest idea on the planet, but until you take the time to think through its viability, you are doing yourself a disservice. Your idea isn't everything. A lot of your results will come from your execution of the idea, rather than the concept itself. As of right now, you are not yet prepared to execute. Take some time to read the guides below, understand your market, save some money and speak to potential customers. Running a business is a marathon, not a sprint, so it's time to start building your stamina.

Questions Guide

1. Am I passionate about this idea or concept?

If you don’t feel profoundly passionate about your idea, you may not have the strength to follow through when you are stressed, financially strapped and overworked. Trust me.

If baking cookies and sharing them with your friends is the highlight of your day, consider how you can sell your treats or even start a bakery. If you’re passionate about helping people, consider a non-profit. If you’re totally obsessive about sports, think of an app that helps people optimize their fantasy team. You will live and breathe your business, so make sure that it breathes life back into you as well.

2. Does this idea solve other people's needs or problems?

Just because you love this idea doesn’t mean others will feel the same. Even if people find your concept interesting, that doesn’t mean they will pay for it. The inherent worth of an idea comes from its ability to solve people’s problems, make their lives easier or meet their needs and desires.

Your idea doesn’t need to be useful to everyone; something that seems trivial to one person may fulfill someone else’s needs or simply delight them enough that they can’t resist. However, until you are sure that there is a measurable demographic of people whose problems or desires can be solved by your idea (enough so that they would pay for it), you have no basis for turning your idea into a reality.

3. Do I have an easy way to reach people who could use my product or service?

Take some time to consider how you will reach your customers.

If you’re a local business, do you know the best way to catch the right people in the right location? What publications do your target audience read, and where should you advertise? Who can you get referrals from? Can you afford a television spot? Do you have a Yelp account?

If you’re online or in multiple locations, how will you target the right people from across the country (or even the world)? Do you understand search engine marketing? Do you have a website? Can you get press?

4. Do I have a target audience?

It’s easy to say, “everyone can use this,” but that’s also one of the biggest traps a new business can fall into. Your product may have wider use eventually, but you need to start with a focus or you won’t be able to captivate anyone.

Facebook is used by all ages now, but it was initially only a network for college students. This exclusivity not only helped create a sense of community within its target audience, but it also served to increase the buzz and interest from those outside of the group (particularly high school students who were eager to gain access).

The same works offline. A fashion store may have clothing that fits all kinds of women, but their advertisements, style and pricing should target a consistent age range and demographic. Ann Taylor targets older, more elegant women with more disposable income, while Forever 21 attracts young women and teens looking for more audacious, fun and affordable clothing.

Which age, gender, location, income level, interest or other demographic will you go after? Learn more about finding your target market.

5. Do I have mentors in this industry or space who have done something similar and are willing to coach me?

Having mentors to guide you through the common mistakes, roadblocks and decisions of your particular business will be crucial. Depending on the kind of business you create, they may even be in your board of directors or advisors.

If you haven’t gotten started, here’s a guide to getting business mentors and advice.

6. Am I willing to commit the next 5 to 10 years of my life to this one idea?

This one is pretty simple. If you cannot see yourself committing to this idea for 5 to 10 years, through the ups and downs, then you may not be passionate enough about this idea. Of course, if your business collapses, there may be a possibility of throwing in the towel early. But even the most successful businesses grew out of a long series of constant failures; be prepared to weather a lot of disappointment.

7. Are you experienced with any of these?

Each of these skills adds another notch to your business belt. Depending on your product or service, you may not need to know all of them. But you can be sure that the more of these you know, the better off you’ll be. If you want to learn more about any of them, click for free courses or guides:

• Market research (See No. 16 for full list)

• Creating a website

• SEM

• Social media marketing

• Accounting (or software like QuickBooks)

• Managing people

• Sales

• Local marketing and advertising

8. Do I have the background for this business?

Having skills, education or professional experience in the field you’re choosing to enter has a variety of benefits:

• It increases your legitimacy in the eyes of customers, employees and potential investors

• It gives you a leg-up over the competition

• It saves time on learning new skills or topics that will be necessary for your business

• It helps you predict common issues, mistakes or roadblocks you may face

• It can provide you with some of the connections, suppliers or partnerships you need to get started

• Note: sometimes a certification or degree is either required or expected for specific fields, so be sure to conduct research on others who have started a similar business

9. Can I execute this idea in a unique and better way than my competitors?

With any new business, differentiation is key. Unless your idea has never, ever been done before—and trust me, this is highly unlikely—you will be starting a similar business to someone else. And that’s actually a good thing! It means that there is already a proven market for your product or service.

The hard part comes when you need to distinguish yourself enough to stand out. How will you be better or different from your competitors? Will you target a slightly different or narrower market? Will you be cheaper? Faster? Easier? Learn more about creating a unique selling proposition here.

10. How complex is this business idea? If I quit my job today and just focus on this business...

The longer it takes to start your business, the more financial burden you’re putting on yourself, your family and your company. Even if you spend your money carefully, you are technically losing money via opportunity cost when you waste time or drag the process along.

As a general rule, for a website or mobile business, the first version of your company and product should be up and running within 90 days at the absolute latest. The sooner you can get the product out and testing, the better.

A small retail store, restaurant or physical business should be up within 6 months at the most. If the process will take longer than that, make sure you have plenty of money and resources for a long-term setup.

Remember, even after you launch your business, it will take a while before you start turning a profit. You need to give yourself a reasonable runway.

11. Can I handle the risk?

I know it seems obvious, but don’t dismiss this question. You might lose a lot of money. Are you really okay with that?

A lot of people who are relatively risk averse still think it’s a good idea to start a business because they don’t realize how incredibly risky this decision really is. In business, there is no “sure thing,” and you will need to be comfortable with the idea of making bold decisions in the face of constant uncertainty.

12. Do I have enough money to build a basic version of this business without financial help?

It’s not necessary to have enough capital to start the business yourself, but it will really help. If you can borrow money interest-free from friends and family, then definitely consider that, but make sure not to compromise the relationships dearest to you by putting their financial security at risk.

If you need startup capital, that’s all right, but it’s important that you understand your options as well as the consequences of each. Most businesses leverage different kinds of loans to get started. If you can prove that your idea has high growth potential, you can seek investors (if you don’t know about them already, take your time to read up on angel investors and venture capitalists, as well as what they’re looking for). If you’re looking for a more creative financial solution, there are also alternate funding options, such as crowdfunding. No matter what your idea is, make sure you can secure enough money to get it off the ground.

13. If I set the cost of the business aside, do I have enough money to pay the bills and make ends meet?

First, consider how long it will take for your business to get off the ground (and remember, in reality it will probably be even longer than that). Then give yourself at least another 3-month buffer period before you start making money. At the bare minimum, you should have enough to support yourself for at least 6 months. This should be money you set aside for your personal needs, including your rent, food and other non-business expenses. Ideally, you will have money for up to a year. Here’s a great guide that will help you determine whether or not you’re financially prepared to start a business.

14. Are there already customers buying a product or service like this?

This is a great way to evaluate your market potential. Are there already people buying this product or service? How many? And how much money are they spending?

15. Have I researched competitor prices? How much will I charge in relation to them?

If you haven’t looked at competitor pricing yet, it’s time to get started. For a local business, look at other businesses selling similar products or services in your area. Make sure to look at businesses targeting a similar demographic of people. Do your research and get a sense of how much people are willing to pay for your product or service.

Whether your pricing strategy is to offer your product for less than the competition or to provide better quality for a marginally higher price, it’s important that you understand the range that people are willing to pay. Learn more about pricing your product here.

16. Have you conducted market research or a competitive analysis?

No clue what these things are?

• Learn more about how to conduct market research:

o   Evaluating your market size

o   Understanding market segmentation

o   Conducting market research with surveys and focus groups

• Learn more about competitive analysis.

17. Have you researched any licenses, permits and insurance required to start this business?

Compliance is a huge part of starting a business, and it can often be costly, time-consuming and confusing. Don’t let improper licensing be the thing that holds you back from pursuing your idea. Learn more about getting licensed here, and understand different types of business insurance here.

18. Is this business idea seasonal?

Some businesses have year-round appeal, but others have peak business seasons. Maybe your business will be more popular when it’s warm, or maybe when it’s cold. Maybe it will be more popular during the holidays, or when students start school. There is nothing wrong with being seasonal, but it’s critical that you launch your business at the right time to align with the appropriate season (for example, you wouldn’t try to sell an awesome new snow shovel in June).

19. Do I need help form others to build this business?

If you’re sure that you can create this business on your own, that’s great. If you will need help, figure out how much that help will cost you. Maybe you’ll need employees to help you run your store. Maybe you’ll need to hire a developer to build your website, or an accountant to manage your finances. Or perhaps the management responsibility is too vast, and you will need a business partner (just make sure you choose the right one).

Many new businesses need help to get started, but make sure that you can afford these helping hands and factor them into your budget. In the case of a partnership, make sure that this person is as passionate about the idea as you are, and remember that you will most likely only be earning half of the profits.

20. Why am I starting a business?

This answer simply serves as a reminder for you. Remember what you have written here. Whether you are driven by the desire to work for yourself, to build beautiful things, to help people or even to become filthy rich, this underlying desire may be the only thing that keeps you motivated when your back is against the wall.

It’s important to believe in your idea, but you also need to understand your own, personal motivation. Things will get harder before they get easier. Are you ready?