A few months ago I wrote about my 9 business selection criteria for evaluating business ideas. After some deliberation, I have decided to relax the selection process. Specifically, as long as the idea has massive mass market appeal, I am now willing to start businesses where the business model may not be clear and understood from the get go.
While relaxing the criteria, makes the project riskier, strict adherence to the philosophy would mean that I would have passed on Google, Facebook and MySpace. Again, this conclusion is highly personal. To some extent I have already succeeded and as a result am willing to take more risks in order to increase the probability of a home run even if it decreases my batting average.
My willingness to take more risk is clearly demonstrated in running OLX and funding Allmydata – the former is in an extremely competitive market with entrenched incumbents, the later is also in a competitive market whose size and viability is yet to be proven – even though both of them, a priori, have clear business models.
A first time entrepreneur may want to keep the selection criteria to increase his probability of success and set the stage for future successes.