If you have an idea for a business that has been lingering at the back of your mind, maybe it is time you take some action. Listening to the advice of those who know is a good way to start. Billionaire John Paul DeJoria, who was homeless twice before becoming a billionaire, may have a word or two of advice for you. There are actually three aspects that he considers before deciding if a business has real potential for success:
- Potential for scaling
DeJoria looks for products that have the potential of benefiting masses of people, not just a few. This concept is very simple. It is about identifying a problem affecting a large group of people, coming up with a solution, and providing it for them. For instance, Dejoria’s newest project, Aubio Life Sciences makes a lip balm that helps cold sores disappear. About 3.8 billion people in the world suffer from cold sore virus, Dejoria says, which is a rather huge market.
- Potential for repeating customers.
DeJoria says, "You don't want to be in the selling business. Instead, you want to be in the reorder business, where your product or service is so good, people want to reorder it or reuse it."
So, he looks for products that you do not have to be offering over and over again. He aims towards products that will become part of people´s routines.
- Potential for affordable pricing
DeJoria addresses the majority of people that can afford inexpensive products. So these are priced in such a way that they do not become prohibitively expensive. The Aubio lip balm and Paul Mitchell products are all within the reach of people. "All three are premium products, but they are all priced realistically," says DeJoria.