Business Model for “evaluating New Venture”.

“What makes for an ideal entrepreneurial opportunity?” is the question commonly asked when deciding on a new business venture. When reviewing a business opportunity there are three primary aspects to look for: Market size, Technology and Team.

The most important requirement for a good investment is a large market opportunity in a fast-growing sector. That means a strategic view that includes evaluating market growth, market size, competition, and customer adoption rates. Another big determinant of success is the sector. When you invest in the right sector even if the team is mediocre, or the implementation isn’t as good, the rising market will lift all the companies in that sector.

The second factor involves a competitive edge that is long lasting. It is usually an engineering challenge that is tough enough to give the company an edge, which will result in a several year’s technological lead or longer. To create a barrier look for a tough problem that has not been solved before. Patents are strongly suggested.

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