Determining whether your idea has potential as a business is a fairly simple equation:
- How much will it cost to produce your product or service?
- How much will people pay for your product or service?
- How many people will pay for your product or service?
The bottom line: If it costs more to produce your product or service than people are willing to pay, you don’t have a business. Yet. As you work through the product development process, look for opportunities to increase the amount of revenue you’re seeking and decrease the costs.
Taken from Becoming an Entrepreneurial Journalist: From Idea to Implementation, a self-directed course by Mark Briggs at Poynter NewsU.
