Starting a business always leads you to risk considerations, not to mention the fear of loss, or losing face because of failure. One benchmark that we can consider is the fact the food business has been always growing, at least 7% yearly. This reference leads us to think that the satisfaction of vital needs is always a good business. Consider, then, if the business to be started satisfies a vital need. Go for it like you consider the food chain--how high in the scale are you? The lower you are in the scale the more promotion and efforts to be visible and, consequently, perceived as needed (able to satisfy a need) you are. The lower you are in the scale, also, the easier to be discarded or replaced for another alternative you are. The basics of economy tell you that we will be willing to "sacrifice" resources for something that will produce for more satisfaction than the worth of that which you are sacrificing. Thus, this is what you should consider to decide if the project will "fly", above all things. Never put aside the very important fact of the profile of the customer that you will be targetting. This is vital and very decisive on the level of success that you will have. No sales, no money, no growth--no nothing. Based on this you have to make a business plan based on the customer profile. Once you have the profile, think and study their habits. The key point to study is "What they are willing to give their money for?"
You should never act as if you were isolated from the rest of the world. But you should not involve those whom you may compete with to help you to make the decision. From them you should get facts on the nature of the business: level of risk, downturn points, level of demand, type of customers, etc. You can add to this list as you talk to them. How about relatives? My opinion? Never talk to them about the business. They tend to curb you down. Either because of a secret, unconcious, and malicious envy, or because your potential success will mark them as failures. They are powerful deterrents to anything that involves some risk. Look, instead, for somebody who acted as consultant to a local successful business. See the banker for this. They can introduce you to somebody of those qualities. They are apt to know because they approved the funding for the business based on the presentation of the consultant. If there is existing competition, or competitors will emerge because they see your success, you should be ahead of them. Study the strengths and weaknesses of your competitors. Constantly analyze the strengths that can make you successful. Focus on the strengths and make them better as you grow. The weaknessess will dwindle in the eyes of the customers if they are not obnoxious and offend personally or emotionally. When you start to grow, then it is another problem with new visions and strategies. That requires a different vantage point to be tackled.