As the following table illustrates how new combinations may vary in the level of innovation present.
| Low | If the discovery is not new to the marketplace |
| Medium | If the discovery provides a definite improvement |
| High | If the discovery is a real breakthrough |
If the level is low, it means that your business idea or current venture is not a new combination and therefore not innovative. At this point, you should not continue with your start-up venture or current business until a higher level of new combination is found. If the level is high, then your answer to “Is it a new combination?” is yes and you continue to the next question.
Is there a product-market match?
A product-market match occurs simply when your business is able to sell its product/service to a buyer, which we also call finding a purchase order. If you cannot find a purchase order, you do not have a business.
| Low | If there are no purchase orders |
| Medium | If there are some orders or sales currently exist |
| High | If there large quantities of orders |
If the product-market match level is low, then you should not go on with your start-up venture. If you have an ongoing business, and your product-market match level is low, you must assess whether you really have a viable business and consider re-orienting your efforts. If you don’t want to re-orient, and want to build a better business venture, then begin to find a better product-market match. If the level is high you continue onto the next question./p>
2. Value (Does it create value?)
Three questions decipher whether your business idea or current venture creates value.
Is there net buyer benefit (NBB)?
Simply stated, the net buyer benefit is the difference between the value that the customer sees in your product/service and the price you want to charge.
| Low | If you are forced to reduce prices in order to sell your product/service |
| Medium | If your product/service price remains stable |
| High | If you are able to increase prices without a reduction in demand |
;
>If the net buyer benefit is low, then you should not go on with your start-up venture. If the NBB is low for your existing business then you must try to differentiate your product/service to raise its value to customers. If the level is high then go onto the next question.
Are there margins?
Margins determine the value produced for your business. It is the money your business earns as profit once all expenses are accounted for.-->
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