I was reviewing some old material today and I came across an insight that I want to share. Andy Kessler, an ex-hedge fund manager, identified three key items that he looks for in any business; they are:
- Big market
- Unfair competitive advantage
- Ability to leverage that advantage through their business model
While you may or may not be looking for outside investment, these are three important items to keep in mind. Here's my take:
- Big market - Are there enough potential buyers who are suffering from the problem your company promises to solve to enable you to achieve your goals? Are there enough potential buyers who can become aware of your solution, without having to be 'convinced'?
- Unfair competitive advantage - Are you a prescription drug? What is your compelling value proposition? How are you unique (BTW, unique is defined as having no like or equal; unparalleled; incomparable)?
- Business model - What is your method for going-to-market and monetizing your value proposition?
I'll write more about this in future posts. Share with me your answers and I'll be glad to give you my feedback. My e-mail address is firstname.lastname@example.org.