When an entrepreneur has an idea for a business, he/she should put the idea through three filters:
- Marketing filter – does the market actually want the product or service?
- Financial filter – can the product be delivered within a market related price range?
- Operational filter – is it possible to produce the product?
Market research should be done to forecast the uptake in the market accurately. A reasonable estimate should be done about the sales opportunities. The success of the venture will depend on this forecast ability.