Your Grade For Your Business Idea

ALB

Description:

• Few, if any third-party dependencies.
  Congrats on having control over the major operations of your business. Not one company can ruin your business with one arbitrary decision. You have effectively mitigated a substantial risk that many small businesses undertake.

• Teeny-tiny market size
  The size of your market is a huge concern. If your market isn't large enough, there may not be enough buyers to make your business worth an investment. If your 'best case scenario' just pays bills, is it really worth pursuing? With such a small market, you will need to execute perfectly. The only exception to this is when you have a big-ticket product or service.
  
• Limited to zero repeat use.
  A big trouble spot here is that your product is a limited use product. This means that once you find your customer (either through expensive marketing or some other expense initiative) they are unlikely to buy again. Not because your product stinks, but because it just can be used once, like a book, a game, or a calculator. While this isn't the end of your idea, it is a facet that you must deal with by offering more options (For example, more books, more games, etc.) to continually leverage your customer list. Additionally, because your product is just a one-time (or two-time) deal, your marketing efforts will have to continually replace old customers with new ones. Build momentum will be a struggle.
  
• Potential time dependencies.
  Looks like your idea will require a lot of your time. While this isn't a deal killer (most businesses require HUGE time investments) eventually you'd like to transition out of the 'work for money' equation. This is only done through automation.
  
• SIGNIFICANT FACTOR: Some effort required to reach potential buyers.
  Reaching buyers might require a bit of expertise, money and creativity.
  

• Average need
  The need you've identified, or the relative value as compared to existing options is just average. The need you're solving (or the unique value you're providing) is the most important.
• Average entry barriers.
  The resources needed to launch this business (time, skill, money) could a concern, both in the short and near term future. Strong entry barriers stop others from competing with your business. Because this idea waffles in the middle, it might be a problem later.
• Average replication ability.
  Replicating your product is not relatively hard. While there might be some challenges in meeting a huge demand, you should be able to make it happen with some adjustments and/or investments in resources; human, financial, or digital capital. Your ceiling on wealth creation is correlated to this metric as it correlates to your ability to meet demand.