The 4 Test Rule

I look at a lot of business plans, and in short, what do I look for?

1. The idea is PROFITABLE. Maybe not today, but soon. Unless you have secret hypnotic powers and can convince some unwitting VC that Pet Rocks are indeed making a comeback, you better have a plan.
2. The idea is SCALABLE. What does that mean? Well...if your margins are running 40% BUT your entire market consists of all the left handed, identical twin Capricorns living in the West Indies who play Scrabble on Thursdays...then your plan may not be of compelling interest based on the size of your overall target market.
3. The idea is REPLICABLE. It can be done more than once. And in hopefully more than one place. It is a repeatable, successful business model that can be grown by you and others with reasonable confidence.
4. Lastly - the idea is SUSTAINABLE. You can reap the profits of your labor (both figuratively and literally) longer than the wonderfully not-so-successful Pets.com business lifecycle....I think the only company in history to go public (IPO) and bankrupt in the same year. Impressive.