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(1) Annual revenue if successful. So, it's number of users/customers times average revenue for each. (2) Ease of getting first users/customers before virality
by graycat 9y ago
(1) Annual revenue if successful. So, it's number of users/customers times average revenue for each.
(2) Ease of getting first users/customers before virality, a marketing/sales effort, etc. can work.
(3) Some form of lock-in. E.g., once a company has all their important data in database manager X, they will be reluctant to change to Y. E.g., once all the office is good with office suite software X, they will be reluctant to change to Y. Once all your friends are on Facebook, you want to join Facebook and won't want to leave all your friends. And there are more cases.
(4) Various barriers to entry to keep out competitors. Technological secret sauce can be one such. Also some proprietary data. Sure, have to count some forms of lock-in as possible barriers to entry.
(5) Ease of developing the product or service to get to good profits, e.g., your wife is pregnant, your three year old needs braces on her legs, your nine year old needs braces on her teeth and wants to ride horses, your 11 year old wants to be an Olympic figure skater, your 16 year old wants his own car and to go to a private high school that will let him race ahead in computing, and your 18 year old has done really well in violin, e.g., much as in
https://www.youtube.com/watch?v=xvtibhCdepQ https://www.youtube.com/watch?v=xvtibhCdepQ
[October 27, 2017 will be exactly 100 years since he did that, fresh off the boat, at Carnegie Hall and got a remark from a violinist in the audience "Isn't a little hot in here?" and a remark "Not for pianists!"]
has been accepted to Julliard, and wants a $500,000 violin (down from th $15 million he really wanted). And, by the way, you need a larger house and want an enclosed, Olympic pool. So, you want profitiability. Oh, yes, everyone in your family over the age of 5 wants the new iPhone for Christmas. Your wife needs a new SUV, bigger than the last one. You want a Corvette, e.g., just to save time driving to work you understand. Oh, yes, the new house needs a four car garage.
(6) Technology is your friend that helps you make money and not your enemy that threatens to run you out of business.