Start with a SWOT analysis

Then, find answers to these questions:

  • Are there competitors?
  • Does the service satisfy an important need?
  • Is it a one time/infrequent purchase or would it be on a subscription model?
  • What is the estimated profit margin?
  • Does it depend on a lot of people resources to run it?
  • How easily would it scale?
  • How easy would it be for competitors to copy?
  • Does it lend itself to patent/copyright protection?
  • What is the market size?
  • Are there substitute services?
  • Does the service lend itself to the “network effect?”