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There are six fundamentals to a well-built venture. They are:
- Innovation
- Value
- Persistence
- Scarcity
- Appropriability
- Flexibility
When identified and addressed properly, the odds of growing a successful venture are increased exponentially. Each fundamental builds upon the proceding one. This means that there is no reason to explore
the Value fundamental until the Innovation fundamental has been addressed and resolved satisfactorily.
Innovation
Is it a new idea? A new way to do something? Is anyone willing to pay for this new product or service? These are the fundamental questions that must be reviewed before going on to the other sections.
Value
Is there value for the Buyer of your new product or service? Are margins sufficient for the venture to make a per
unit profit? Is there enough market to reach the financial needs and goals of this endeavor?
Persistence
Is this a one-time only purchase? Or will customers come
back time and again to make additional purchases? Can the product or service be sold forever or is it the new "Pet Rock" a fad with a limited life-cycle? Are there sufficient resources to see this
venture through?
Scarcity
If the venture is really a business, can you keep it? Are there sufficient safeguards to protect your new market from imitators? Can it be protected from from substitutions?
Appropriability
Is your operation efficient? How about the distribution system? Your suppliers? Are you paying more than you should? Can the government collect more taxes / fees?
Flexibility
Who's going to mind the store? What is the management team's experience? What measures are in place to offset uncertainty?
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