From the course: Entrepreneurship: Finding and Testing Your Business Idea

Understand the business validation micro plan

From the course: Entrepreneurship: Finding and Testing Your Business Idea

Understand the business validation micro plan

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- So you've got this great business opportunity, right? Now it's time to go out and get a logo, get your business cards, form an LLC, get a loan, set up a website, slow down for a second. The next thing that we want to do is test that idea. We want to make sure, or as sure as we can possibly be, that this is a good business opportunity before we put lots of hours and money into the business. So what we're going to do, is we're going to create a micro business plan. You may love the idea and you may already be envisioning creating this corporate empire, but at this point, consider that failure is an option. It's a good option. We want to test whether or not it's going to succeed. Because in the real world, this is about results. Now just your passion. We also need to make profit. And if we are successful, then we can leverage it into the full opportunity of creating that empire that you envision. Now, is there such a thing as a perfect business opportunity? No, there never is. But we can do some things to increase our probability of success. In fact, a wise mentor once taught me this formula, the probability of success minus the probability of failure equals one. What does that mean? Well, if we increase the likelihood of success, we'll naturally decrease the probability of failure. And this business plan is how we're going to go about doing that. I've provided you with a worksheet that you can use to create your micro business plan test.

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