- potential customers: businesses or consumers? If you're targetting businesses be aware of a large sales cycle; that means you'll need more working capital. Lots of customers or just a few? If there are lots you have more power, but it also means a certain type of business model. If there are few, they will have more power, namely to negotiate prices. The worst situation: you have one customer, government.
- potential suppliers: businesses or consumers (eg user generated content)? These mean different business models. Lots of them or just a few? If there are lots of them you'll have more power (eg. price negotiation). If there are just a few (or worse, just one), you might have problems down the line.
- potential competitors: are there any (if none, perfect!). Are there just a few or lots of them? Just a few might mean that its an available market but it might mean that it's a difficult market to get into, namely in terms of initial investment. Lots of competitors means that its easy to enter that market, competition his big and that means a constant price fight.
"potential competitors: are there any (if none, perfect!)." ... or it could indicate that there is simply no market for this idea. Seeing a few competitors at least validates the idea & proves that at least some other companies think there is a market for this.
- potential customers: businesses or consumers? If you're targetting businesses be aware of a large sales cycle; that means you'll need more working capital. Lots of customers or just a few? If there are lots you have more power, but it also means a certain type of business model. If there are few, they will have more power, namely to negotiate prices. The worst situation: you have one customer, government.
- potential suppliers: businesses or consumers (eg user generated content)? These mean different business models. Lots of them or just a few? If there are lots of them you'll have more power (eg. price negotiation). If there are just a few (or worse, just one), you might have problems down the line.
- potential competitors: are there any (if none, perfect!). Are there just a few or lots of them? Just a few might mean that its an available market but it might mean that it's a difficult market to get into, namely in terms of initial investment. Lots of competitors means that its easy to enter that market, competition his big and that means a constant price fight.
-- MV