Top Seven Characteristics of Successful Business Ideas

1. Scalable: Scalability is a business idea that allows it to grow at the exponential level needed to evolve into a large business. A scalable business will increase its revenue from $50 a week to $100 per week without doubling its costs. Although many successful companies were not scalable, the scalability makes the success prospects much higher.

2. Sustainable - Has a Multi-Year Plan: Great business ideas need to be sustainable in two regards - access to resources and a vision: 1. Sufficient access to resources: Draining key resources will cause the business's death. Think of a mineral water company whose spring has dried up. What are its prospect for success? 2. Vision: A business without a vision regarding where it will be a year from now will never be there. On the other hand, a business with a clear vision regarding its goals will carry out day-to-day activities to achieve them.

3. Solves a Problem in an Intuitive Way People Like: If the business's solution is not intuitive and hard to understand or is not liked by people, it will cause the business to fail. An intuitive solution is the google search engine. The company has created an intuitive product while solving several problems users had with finding the data they searched for.

4. Has an Existing Market or Has the Capability to Create a New Market: A business idea without a market isn't but an idea. Therefore you must validate first that the market needs the solution your business is about to offer.

5. Enters a Growing Market: It's much easier to succeed in a growing market. In such a market, scalability is much easier. Industries go through business cycles of growth, stability, and decline. Entering a stable or decreasing market is expected to create difficulties after launch. Measuring the market's growth is a crucial element in business success.

6. Profitable: A key factor in the success of a business is a profitable financial projection. To make sure a business has a profitable idea, it must obtain a financial projection. At the end of the day, no financial forecast is accurate. But on the other hand, if the business is not profitable according to the financial forecast, then the chances of success are nil.

7. Differentiated: A successful business is different from others. They offer something different from existing products or services. The business idea needs to offer something unique and not replicated, such as better service, lower prices, or higher quality.

If you have a business idea and can't find several of the "Top Seven Characteristics of Successful Business Ideas" in your plan, you should consider looking for a better business idea.

Now that you know if a business idea can be successful - it is time to answer the one million dollar question - What is the idea's value? To quickly find the value - you can use our business valuation calculator. Start for free. Pay as you go!