When reviewing a new business opportunity, there are six crucial questions. These apply to any industry and almost any type of business.
• Is the market large enough?
Is there money in it, are there competitors making money, can you?
• Is there an existing customer base?
If people are buying, then you know it can be sold, creating a new market means you have to teach the customer why to buy from you. You want a market that knows what you are selling and knows they need it..
• Is there an opportunity to dominate the market?
What is your unique advantage or selling proposition? Is there something you have that gives you an edge over your competitors?
• Can existing technology be used to rapidly grow the business?
Taking new technology into a an old market can give an advantage, and can you business scale?
• Can the company be profitable and will investors participate?
Can you make money at this, how?
• Is there a meaningful exit opportunity?
You will want to set up be able to sell your business one day; either to exit and move on, retire, or just doing that so your business systems are stable.
Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher
“We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.
— Charles T. Munger”
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