I’m currently going through the process of researching different niches and trying to find a viable business and product idea. Based on books I’ve read, podcasts and other sources here is a list of requirements I would like a potential idea to meet.
- Must be selling to small businesses with employees.
- Solves a problem that businesses are already searching online for.
- There must be an existing marketing channel to reach customers.
- Must have a recurring revenue.
Along with those base requirements I have the following list of things that are ideal but not required.
- Solves an urgent problem that requires a short sales cycle.
- High pricing potential to be able charge a higher price and sell on value.
- Low cost of acquisition, some factors that reduce cost of aquisition are:
- Having a high urgency product.
- Selling to businesses with a single decision maker.
- Low cost to service a customer, some factors that reduce this cost are:
- Low onboarding cost
- Low cost of support whether by phone, email, chat etc.
- Low cost of support staff such as a DBA or IT infrastucture.
- Have a unique and simple value proposition.
- Low time and money to get to market.
- Long term potential, try to avoid building on another companies API or platform
When it comes to evaluating markets and ideas are there any other factors that should be taken into consideration?