A Business Equation

In searching for the viability of a business in terms of a mathematical equation I have worked out some of the parameters. The numbers below next to the item represent a factors importance as it relates to the total equation on a scale from 1-10.

  1. Problem(5) - How well is problem understood?
  2. Solution(5) - How well does solution work?
  3. Market(8) - How well is market defined?
  4. Market Size(3) - How large is market?
  5. Market Reach(9) – What is the cost to reach this market?
  6. Market Feedback(8) – How much/little feedback do you have on Problem/Solution from target market?
  7. Cost Value Scale(8) – How well does product/service rank with similar products or services on a cost/value relationship?
  8. Competition(5) - How many other businesses are doing the same thing, how close is this product/service to being duplicated by someone else at a lower cost?
  9. Automation(8) - What’s the product/service potential for systematization and automation?

My thought is to get break out Excel, then list these items with their weights in columns, and your business ideas in rows. Rate each business idea on each of the following attributes and your total score best represents a high business potential.

So for an average business you might have scores reading: {Problem = 5*5=25, Solution = 5*5=25, Market = 5*8=40, …. Automation = 5*8=40 } equals 290 for a Total Business Score, good businesses, with 7′s or greater for each category would end up with a score of 406.

I would like to use this model to plan for future business endeavors.