We have come up with two product ideas in the last few months. We have done research on both markets and we have had great response to both ideas. Here is where things get tricky.
On one hand we have a product idea that definitely solves a problem for a small industry. We have spoken with 10 or so players in this industry and they would all be willing to pay for our software (they are hungry for a solution). This would be a very stable income producing product / company that could go on for years innovating in this industry but its growth potential would be somewhat capped. I can see it getting to 5+ million a year in revenue with 60% profit margins but then it becomes much more difficult to grow. Getting to 10 million would be a short term ceiling (Pending some other added revenue sources).
On the other we have an idea for a consumer product that has a huge market but a lot less predictability. Obviously the market is much bigger; but there are other players, the price points are much smaller, and there will be continuous competition because of potential for growth and future payouts.
What project do you think we should pursue?
Is it possible to get funding for a smaller market product?
