Venture capitalist Howard Morgan long spoke of the “Four P’s” of sizing up a business for potential investment: People, Product, Plans and Profits. Later, he added two more:
Starting about 1996, when I was a lead investor in Idealab, I was inspired by Bill Gross to add a Fifth P.
Passion – the entrepreneur must exhibit real passion for the idea, since he or shee will be giving up some of their personal life to make it happen, and needs to believe strongly in what they’re doing.
More recently, as I’ve begun to reflect on the Way Too Early theme of my investing career, I’ve added the 6th P
Persistence – the ability to stay with it through all the many setbacks that happen during the long time it may take from idea to profitable execution.
Full article here: The Sixth P in “Way Too Early”