When you're evaluating new business ideas in fast-moving markets, where trends, consumer needs, and technologies are constantly evolving, is there a particular red flag or warning sign you find especially important to watch for? For example, do you have a specific signal you monitor that suggests an idea might not be viable or sustainable in the long run??

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If customers say “that sounds cool” but never pay or actively use the product, it’s a red flag. The biggest signal is talk without traction. I watch for a lack of repeat usage; if you need constant reminders or incentives just to keep people engaged, the idea might not be sustainable.

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Social media likes and views are not indicator of actual interested customers

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Is it stupid? Seriously. It's baffling the number of ideas and businesses I see that, if you look at them for more than a minute, you wonder how anyone thought they were viable.

Go look at the top companies in the last decade that raised huge money and failed or went public and lost 90%+ of their value. The writing was on the wall all along. They never made sense as businesses, especially the companies pretending to be tech companies because they have a website.

Blue Apron, Groupon, SmileDirectClub, Quibi, Zume. WeWork.

Two other big red flags.

One, is this actually serving a need or solving a problem? I see so many startups trying to build a thing nobody needs.

The other thing is hype. Is this actually an idea that has a wide market, or does it just feel relevant to the niche audience of people building and investing in it? A great example of this is Clubhouse. Techies and VCs liked it. The rest of the world couldn't have cared less.

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