🧠 Here’s a short thought exercise I like to do when considering business ideas. I came across this years ago in the amazing pages of Josh Kaufman's “The Personal MBA,” which everyone interested in business should read. Rate each of these ten factors on a scale - (0) being low potential, (10) being high potential. If in doubt, try to be conservative. You are likely very good at fooling yourself - I know I am. Here we go 👇 1. Urgency ➔ How bad do people want or need this right now? 💡 Renting any old movie is low urgency. Attending the premiere of an opening movie is high urgency. 2. Market size ➔ How many people are actively purchasing things like this? 💡 There is a massive market for cancer cures, but a marginal market for underwater weaving courses. 3. Pricing potential ➔ What is the highest price a typical purchaser would be willing to spend for a solution? Lollipops sell for $0.5 - while aircraft carriers go for billions. 4. Cost of customer acquisition ➔ How easy is it to acquire a new customer? On average, how much will it cost to generate a sale, in both money and effort? 💡 High-traffic interstate restaurants spend little to bring in new customers, while government contractors can spend millions landing a major deal. 5. Cost of value delivery ➔ How much would it cost to create and deliver the value offered, in both money and effort? 💡 Delivering files via the internet is almost free. Inventing a product and building a factory costs millions. 6. Uniqueness of offer ➔ How unique is your offer versus competing offerings in the market, and how easy is it for potential competitors to copy you? 💡 There are many hair salons, but few companies offer private space travel. 7. Speed to market ➔ How quickly can you create something to sell? 💡 You can mow a neighbor's lawn in minutes, but opening a bank can take years. 8. Up-front investment ➔ How much will you have to invest before you're ready to sell? 💡 To be a housekeeper, all you need is a set of inexpensive cleaning products. To mine for gold, you need millions to purchase land and equipment.