One of the best ways to assess development risk is to build and test a prototype, or <a href="https://www.inc.com/rahul-varshneya/5-common-traits-of-a-successful-mvp.html">minimum viable product </a>. What looks good in your head may have unforeseen challenges in cost, reliability, and usability in the marketplace. Investors expect this step to be proven successful before funding.

3. Be a dreamer first, but a realist on marketplace risk.

I believe that writing down your business plan has tremendous value for you, even if you don't need investors. Generating a written plan will force you to think through all the key elements for success, including market definition, solution features, financials, real competition, and marketing.

6. Write down your business model and five-year plan.

This starts with building a positive and persuasive pitch deck for investors and team members, and updating your team on a weekly basis with progress and next steps. It also means building trust and credibility through visibility, feedback, and really listening to your team and customers.

8. Maintain communication and trust with constituents.

I find that many entrepreneurs are so blinded by their initial idea, they fail to evaluate alternatives. I recommend that you always use brainstorming, or expert feedback, to define similar approaches and markets, before proceeding to produce and sell a solution that may be expensive to change later.

2. A great innovation starts with at least three ideas.

Every successful business owner you know will tell you that their plan has changed or <a href="https://www.inc.com/alan-spoon/what-pivot-really-means.html">pivoted </a>from the original. Primary reasons include unanticipated customer reactions, early competitors, financials not meeting projections, and channel partner issues. Plan for change before the first crisis.

5. Be ready to pivot at any point in the process.

You can improve your odds by reducing risks. Certainly, some risks are uncontrollable, such as the recent Covid-19 pandemic, but others are manageable. For example, you must secure adequate funding for operations, hire good people for operations, and manage your reputation and service.

7. Take the steps needed to improve your success odds.

Believe it or not, customers are not all like you. I have found, for example, that early adopters love innovation and new features, while mass market customers enjoy simplicity and usability. Don't be hesitant to use focus groups, crowd funding, and personal interviews to quantify interest.

4. Test your innovation with at least a hundred customers.

A key attribute of every innovation transformed into a successful business is that it must provide a solution to a real problem that potential customers are willing and able to pay money to acquire. Beware of solutions that are merely nice to have, or available alternatives that are cheaper, better known, or easier to use.

1. Every innovation must solve a customer problem.

Ideas and innovations are big thing, but making it into a business is another story.

Don't be fooled into thinking that solution innovation alone will assure long-term business success.