Business Planning: Evaluating Whether Your Virtual Business Idea is a Good Fit

By Steven D. Peterson, Peter E. Jaret, Barbara Findlay Schenck

If you plan to make your virtual business a reality, you will need to evaluate your idea before you launch into your business plan. Take time up-front to think through whether your business idea can succeed using a virtual organization. Ponder these essential questions:

  • Is the product or service you provide a good fit for a virtual business?
  • Can you effectively reach customers without a brick-and-mortar home base?
  • Which aspects of your operations are best suited to being conducted virtually?
  • Which aspects of your business would benefit from having an office or storefront?
  • What are the biggest challenges you’ll face going virtual?
  • What strategies will you use to address those challenges?

If you find yourself struggling to make a strong argument for going virtual, you may want to rethink your plan.

To face up to the challenges that a virtual business organization can pose, check out Form 12-2. Tick off each of the items that are relevant to your business plan. Then take time to detail strategies that you plan to use to address these challenges.

Very few businesses are entirely virtual. But more and more conduct key parts of their operations virtually.