1 - Speed to Market

Speed to market is basically the amount of time from your initial concepts and planning until you are able to start selling your solution to a customer.

2 - Up-Front Investment

How much capital will be required before you see the first dollar from sales to a customer?

3 - Size of Market

While the size of the market is obviously something you should take into careful consideration… The more important consideration is the market potential of your product.

4 - Cost of Acquiring a Customer

CAC - the amount of money you spend to acquire a new customer into your business.

Obviously, the lower this amount the better.

You can even segment your CAC by marketing channels such as Facebook, Google, direct mail etc.

5 - Pricing Potential & Upsell Potential

Can you offer your product for a higher premium than other competitors in the market?

Are can you offer your product for a lower price (while still making a decent profit) than other competitors?

Are there other products that can be offered as an up sell?

6 - Cost of Value Delivery

This one has a near and dear place in my heart. In the early 90s I started a national home grocery delivery business.

Great idea… Wrong time!

The cost of shipping the product was exorbitant compared to the value the consumers were getting via lower prices.

If you are offering some type of product or service that involves you personally you have to take into account the monetary value of your time.

For example if it is going to take you three hours of your precious time this might make the cost of delivering the value prohibitive.

7 - Evergreen Potential

This is by far one of the most important items I look at when evaluating a market.

Is this a market that will provide revenue for years to come?

Will there always be a demand for products in this market to allow you build a sustainable business?

Every Business Succumbs to Demographics…