The Top 3 Principles to Evaluate Your Business Idea

If you are going to launch your startup company, no matter what products or services to create, the only three principles should be pretty important for all entrepreneurs. The three principles are Rigid Demand, Pain Point and Recurrence.

1. Rigid Demand

Rigid demand generates strong needs. Most of the natural resources like water, gas, and electric power are highly needed for human society. Here below is a list of rigid demanded products and services.

  • Coffee
  • Pet foo
  • Wedding Ring
  • VPN for blocked guys
  • Weight loss

2. Pain Point

Pain point produces purchase impulse. People need water and air, but would not pay for them in a normal situation, because we don’t lack them, so these things do not create pain points. The GFW blocks Chinese to visit websites overseas, that’s a pain point, that makes people willing to pay for a VPN service to surf the internet. If you find something is hard to make or achieve, that’s a pain point, such as:

  • Mastering a foreign language
  • Find a great job
  • Weight loss diet
  • Grade improvement

3. Recurrence

Reading is a recurrence activity that makes content consuming to be a good business, thinking about you purchase ebooks on Kindle again and again. Searching for information is another recurrence activity that makes Google can sell ads to advertisers worldwide. A recurrence business model makes the company easy to grow, and recurrence income makes your finance more healthy, because the first sale is most difficult, and recurrence sales would be much easier.

If you are going to start a small business, put your business idea into the structure of the above three principles firstly, to make sure it’s a good niche, then you could focus all your resources to run this business.