Evaluating Online Venture Opportunities – Industries and Markets

 

When launching an important new online product or business there are several questions to ask.  First and foremost is this: Does your new idea change the way people will live their lives and work, or is it an incremental improvement only?  If the latter, then beware in terms of ginning up investor or media interest – you probably have a lifestyle business on your hands that will be hard to garner attention.  If the former, then get your pitch ready because investors and the press may want to hear what you have to say.

 

In terms of evaluating prospective markets, here are 5 additional questions where an affirmative on the former suggests you have a high-growth, investable business on your hands and the latter suggests a lifestyle business.  They are:

 

1.      Does your idea encompass a market-driven recurring revenue niche, or is it an unfocused, one time revenue play?

2.      In terms of customers, are they reachable by you or are they loyal to others?

3.      In terms of user benefits, will they see a payback in a year or less when adopting your product or will it take three years or more for them to receive a positive ROI? 

4.      Is there a high value-add where customers will pay in advance, or is the value-add low with minimal impact on the market?

5.      Finally, is the product a durable one or is it perishable?

 

Shaping your new online business and pitch towards a reachable, market-driven audience with recurring revenues, one year payback, high value-add, and durable products will increase your chances of success with both investors and customers.