Generally speaking: what's a good way to evaulate business ideas?
Fabrice Grinda, a 31-year-old entrepreneur who once sold a company (Zingy) for $80 million once admitted that he steals brilliant internet ideas from USA and bring them to Latin America or Europe or vice versa. He 'throws stuff at the wall and see if it sticks. And if it fails, it fails.'
His series of business selection criteria when deciding which company to go into are as follows (and he does make the point that these are personal and based on his own skillset:
1. Is this a billion dollar market option?
2. Is this a valid and understood business model from the start? Do you know how much you’re going to charge? Do you know what your gross and net margins are
3. Is this a biz that doesn’t require more than 5 – 15 million dollars in series A funding, more than $2 M in seed money coz if it s more than that then its probably not for a start up.
4. Is it scaleable?
5. Is it something I want to do (coz it needs to be fun)
6. Is it something that’s at no risk or little risk if there’s intermediation or market repression from suppliers or customers? Don’t be involved in a biz where there's a risk of disintermediation!
7. is it something that’s part of a growing market?
His blog
www.FabriceGrinda.com
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