Successful business idea properties

  • Properties of a successful business idea: A business idea which offers a product or service should be evaluated based on one or many of these following properties (that get attention from investors and Venture Capitalists).

    • Serious problem: It should be solving a serious problem. Any successful business solves some or other serious PAIN of customer. This pain can be anything like the need for social connection(e.g Facebook), the need for information (eg. Google search), the need for diabetes cure, and so on.

    • Cost saving: It should provide significant cost savings.

    • Fits in existing frame of customer behavior: Customer will experience less discomfort and accept the product/service faster, if a product or service solves a serious problem in the ‘existing’ system without requiring significant ‘change’. It should not ask the customers to change their behaviour, life style, daily routine, general norms of industry, etc.

    • Media attention: If the business idea can attract the attention of media (print/online) because of its unique offering (i.e., it is not just another product or service which already exists in some or other form), then it attracts the attention of investors, VCs, and early adopters. It will also help in “crossing the chasm”.

    • Market identification: Bill Aulet says that the most important thing required for success of a business is CUSTOMER. A business idea should have a customer/market. Are you able to identify who will be your customer? Who will be your first few customers or early adopters?

  • Fast expanding market: A business idea related to rapidly expanding market like social media (e.g Facebook, Foursquare, Gowalla, etc.), clean technology, renewable energy will get better attention from the investors and VCs than a product related to stagnant market.

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