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1. Market demand .
• Who is your target customer?
• What is your value proposition?
• How strong is his pain point?
• What value do you provide that will make the customer buy your particular product or service?
Bottom Line: It has to be something people need and can't get from other places, and it has to be sustainable over time.
2. Market size and structure
Here are the questions you need to answer:
1. Who are your competitors?
2.What are they offering their customers?
3. To what degree can you provide something different that's going to allow you to capture market share from this industry?
4. What's your sustainable competitive advantage against all others?
3. Money.
1. How much is it going to cost me to produce this product or service
2. Can I charge enough so that I can make money?
Your revenue minus your cost of goods should be around 40 percent or more. You want to have at least a decent gross margin because you need to be able to fund your operating expenses out of it.
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