One Chart Business Test

The concept of a "One Chart Business" suggests that the most compelling businesses can be explained with a single data visualization that shows clear market opportunity or trend. Here's the framework:

What Makes a One Chart Business

• The business concept should be so simple it can be explained with a single chart
• The chart should demonstrate clear market movement or opportunity
• The underlying trend should be strong enough to build an entire business around

Real Examples Mentioned

• Cremation Services

  • Chart shows cremation growing from 10% to over 50% of funeral market
  • Clear upward trend justifies building businesses around cremation services
  • Single chart was enough to validate the business concept

• D2C (Direct to Consumer) Brands

  • Success was primarily based on two metrics:
    • Time spent on Facebook
    • Facebook ad CPM (cost per thousand impressions)
  • These brands worked backwards from Facebook ad opportunities
  • The entire business model could be explained by Facebook usage trends

Key Principles

• Simplicity is powerful - if you need multiple charts to explain the opportunity, it might be too complex
• Look for clear, undeniable trends
• The best opportunities often come from obvious but overlooked market shifts
• Business model should directly capitalize on the trend shown in the chart

Why It Works

• Makes it easy to communicate the opportunity to investors
• Provides clear focus for the business
• Shows market validation before building
• Reduces complexity in decision making