How to tell if a market is a good one

Questions to ask yourself

  • What has changed? Why now?

    • Have the cost fallen or price points have risen?

    • Has a new distribution channel opened up such as Facebook virality did for Zynga?

    • Has a new technology emerged?

    • Is there a new source of customers or demand?

  • Is a growing customer base being dramatically underserved? (think Palantir and government data analysis)

  • Is the industry growing rapidly?

  • What is the market structure?

  • Is there a lot of hype or interest in the market?

Author: Elad Gil

Source: http://blog.eladgil.com/2011/03/how-can-you-tell-if-your-market-is-good.html

Rohan KatyalStrategy