Simple Criteria to Evaluate Startups Ideas

From investors perspective, the best business to invest in is the one with a constant flow of clients, long term contracts or predictable revenue generation schemes, or constant  business growth from repeatable clients.

In that sense, here are 6 simple but effective criteria to select opportunities or niches to evaluate:

  • Business with lock-in possibility: which means solutions once acquired by the client, will become part of the client day to day business operations, and therefore make it difficult to switch to competitor.
  • Productivity solutions: the biggest issues in Africa in many sectors and industries is a very low productivity due to lack of technology but also human resources deficiencies. Solutions with a high potential to boost business productivity in targeted niches would have high lock-in potential but also have high margin and predictable and recurrent revenue.
  • Recurrent & Predictable revenue generation solutions: solutions with the potential to generate revenue from the same clients in a predictable way would not only make the company stronger but also be easier for investor to pay attention to.
  • High margin growth sector: the addressable market should be one with high margin business model and also one with high growth perspective.
  • Underserved or overlooked niche satisfying all above criteria: There are still many niches for IT solutions which are currently overlooked, and we will list them for consideration.
  • Solution which requires deep local knowledge and connections which would be a barrier to entry for bigger and better funded foreign competitors.
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About Mawuna KOUTONIN

Mawuna Koutonin is a world peace activist who relentlessly works to empower people to express their full potential and pursue their dreams, regardless of their background. He is the Editior of SiliconAfrica.com, Founder of Goodbuzz.net, and Social activist for Africa Renaissance. Koutonin’s ultimate dream is to open a world-class human potential development school in Africa in 2017. If you are interested in learning more about this venture or Koutonin’s other projects, you can reach him directly by emailing at mk@linkcrafter.com.

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