Point is, a business plan is nothing but communication in writing, where you tell the reader everything about your business/ idea as clearly and in as much details as possible. Leaving no room for guess work!
Simple, any business idea that you come up with has to pass three questions:
1. Will I pay for this? Would people pay for this service/ product?
Always think of “will people pay for this?” first. Don’t assume that people need what you are creating, rather find out what people want and are ready to pay for and then create it. Put together your product/service quickly and put it on for pre-sale, and then promote the hell out of it. See if people are ready to pay for this product you have been thinking about. You can NOT sell what you can not PRE-SELL.
A quick and easy way to test your ideas is to put together a landing page or simple website with paypal button and all the details of your potential product and advertise it via craigslist or other free classified ads. Work on making money with your idea first, doesn’t matter how much, just find real customers to pay for your service or product, this takes care of the profitability and feasibility of the idea.
2. How quickly would this make me rich?
Is this an idea that you believe would make you rich overnight or in a few short months or with little or no work at all? Immediately scratch this idea off, if you answered yes. 10 out of 10 times such get rich quick ideas are stupid schemes that involve fooling the prospective buyers in some or the other way.
3. What would this business look like 5 years from now?
Look at your idea [product or service] from a scalability point of view! Could this eventually be multiplied and grown bigger with or without you? Is your product or service based on a current trend or fashion that will fade away sooner or later? Or is it based on a nuts and bolts opportunity in the market? This will help you understand the long term potential of opportunity. If you can vision a somewhat definite growth and scaling plan for future, this could be the idea to invest your time and money in.
The three criteria apply to screening or identifying true money making ideas. One more factor: ask yourself whether you have the commitment for the idea.