4 Questions for Evaluating New Business Ideas

  1. Is the idea truly disruptive? Consider: Is the job BIG, as well as unsatisfied? Can we find a compelling foothold customer and solution to make progress? Can we start small and earn early profits? Can we avoid competition from large incumbents?
  2. Can we find a way to implement with low fixed costs (to allow for iteration) and to pilot the concepts cheaply?
  3. Are there long-term sources of competitive advantage available (especially learning curve advantages)?
  4. Is there a path to profitability in 24 months or less?
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