I’ve always been fascinated with growth potential of the business categories.
I created a scorecard based on a number of expectations by market category. Really
Some of the variables include market growth potential, barriers to entry, market growth (CAGR), Purchase frequency of the products sold, average order value, value to weight ratio, gross margin, manufacturing complexity, Market saturation, existing brand affinity, innovation in the category, regulation, accessible to a subscription model and density of startups in the category. Instead of looking at broad numbers, I converted all variables into a weighted scorecard valuation.
I prioritize these metrics and deprioritized others. The result is this simple scorecard of businesses in order of potential to grow into the future. My estimate is you will see more VC funding and growth of high scorecard companies.
If you’re interested in seeing the full research document with scoring please write me [email protected]