One of the main risks of launching your own business idea is in failing to perform enough analysis to identify its potential for success. Seven Domains Assessment framework is a checklist tool that can be used to identify whether a business idea has potential to succeed, highlight its flaws, and help to avoid basic mistakes being made:
Figure 3.5: The relationships of the seven domains for validating business ideas.
This looks at the overall market's ability to provide a profit. Specific consideration is given to identifying the number of customers in the market, volume of sales, pricing segments and emerging trends. The analysis of trends in the market is important for identifying the likeliness of growth, stabilization, or decline, hence suggesting how the current market attractiveness may change.
Key considerations:
How many customers are there in the market?
How many sales are made to the customers?
What are...