What Makes a Good Business Idea?

Business idea checklist: Rate this idea on each of the following criteria from 1-10. 1-3 is weak; 4-7 is fix-able; 8-10 is do-able. What could you do to make each area stronger?

  1. 1

    Sustainable market demand

    • based on one or more identifiable trend(s)
    • not a short term-fad
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  2. 1

    Acceptable financial risk

    • low initial investment to prove idea is viable
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  3. 1

    Simple operations

    • not overly complex to execute
    • less likely to breakdown
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  4. 1

    Feasible

    • “you can pull it off”
    • have necessary expertise and experience to execute it
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  5. 1

    Strong market demand

    • solves real problems for real people with abiliy to pay
    • dependable, accessible customer pipeline
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  6. 1

    Profitable

    • high prices and gross margins (limited competition)
    • low cost to produce (efficient operations)
    • special relationship with supplier(s)
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  7. 1

    Scalable

    • can replicate/ grow business quickly
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  8. 1

    Distribution channel

    • simplify getting product to customer (time & money)
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  9. 1

    Defensible channel

    • intellectual property that is hard for competitors to copy
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10
  10. 1

    High growth potential

    • market is very large; many people have this problem
    • limited direct competition or strong ability to differentiate
    • 1
    • 2
    • 3
    • 4
    • 5
    • 6
    • 7
    • 8
    • 9
    • 10