1. Low overhead.
2. Broad and easy-to-reach market.
3. Predictable recurring revenue model.
4. Dedicated quality founder(s).
5. Appeal as an acquisition target.
6. Development scope.

There’s plenty of information about these criteria on our website and in the FAQ section at http://sproutbox.com/apply, but this is really just the bare minimum. A business idea that fails to meet one of these criteria is almost sure to be rejected, but simply passing the initial test won’t guarantee selection either. I thought I’d share  a little more detail on what really makes an applicant stand out.

It’s a little cliche to say that we invest in people (as opposed to ideas), but it’s absolutely true. Your business plan reflected in your application is merely an indicator of your ability as an entrepreneur. A good application will convey not only your ideas, but also your ability to turn that idea into a successful business. When I read an application, I’m looking for words and numbers that will tell me what kind of entrepreneur you are. In particular, I’m looking for founders who have these characteristics:

Technical Savvy

This doesn’t mean that you must be a programmer. Certainly, founding teams with an accomplished programmer on board will be favored, but I want to see founders that understand both the underlying technology and the benefit it offers to customers. Even if you’ll never write a line of code, an understanding of the technology will help you make the right choices in hiring staff and finding the right partners for your business.

Ability to Raise Capital

SproutBox is an alternative to seed capital. Our investment will help you get a great product to the market, but that doesn’t mean you won’t need more capital to fund growth. Previous investment in your business, or interest from other investors will greatly improve your chances for selection.

Existing Revenue or User Base

We are happy to invest at ‘idea stage’ when we see a great opportunity, but nothing proves a concept better than customers. Great entrepreneurs find ways to engage customers before the product is ready. Maybe you have customers paying you on a consulting or service model. Maybe you’ve got potential customers reading your blog about innovation in your market. Anything that quantifies your ability to attract users will help your cause. The founder of our current Sprout had over ten years of experience and hundreds of paying customers before he ever pitched his concept for a product.

Resilience (aka Scrappiness)

Every startup will face challenges. There have been countless white papers, books, college texts, and articles written about the reasons startups fail, but no startup fails until the founders give up. I can’t tell you how many justifications I’ve heard for why a startup fails: “We were under-capitalized” or “We couldn’t compete with the big guys” or “The market wasn’t ready”. Every successful business found a way to overcome these challenges. Convince me that you have the guts to do the same.

The deadline is coming up 11:59pm Sunday May 8, 2011, so get over to http://sproutbox.com/apply now and show us what you’ve got.

BTW, we love to see applications from all over the place (our first two Sprouts were from California), but the midwest has been living up to expectations lately. Our last two were both from Indiana (myJibe from Indy and StoryAmp from Bloomington). I can’t wait to see where the best applications are born this time.

When we build products for groups of people we aim for a fictitious middle. While we’re trying to make something people LOVE we make assumption about what they love. It would be like saying to your girlfriend “I hear women LOVE Victoria’s Secret. Go try this on.” when in actuality some women might like that but she really loves sweat pants; taken as an individual, demographics mean jack.

When we build products for real people — starting with ourselves — however, we know exactly what to build.

Before he launched Foursquare, Dennis Crowley would go around saying “I just want a Leaderboard for my Saturday night and I want to be at the top of it.” Foursquare wasn’t just built for himself, it was built with a very specific set of friends in mind — those he spent his Saturday night’s with.

Now I can honestly say I really enjoy my experience writing for startups. I may not be a guru, but I can hold my own. That being said, after a month of self-education, and a little help from your websites, I have a request for entrepreneurs who do their own writing; before you post it, ask your mom if she understands it.

The words on your website are just as important as the coding used to create it. And if every other word is jargon only you understand, that’s going to be a problem. You can’t acquire customers if they can’t make it past the homepage. If your target audience only includes tech-savvy entrepreneurs with advanced knowledge of your product, knock yourself out. Otherwise, you’re going to have to rethink your strategy.

Tips for your web writing

Know your audience

Who is looking at your site? Is it someone who works for Google or is it the small business owner down the street? Are they familiar with services you provide, or will they have to learn about it? These are questions you are going to have to tackle before you write.

Use jargon only where necessary

If it isn’t necessary to use technical terms, don’t. People are often intimidated by what they don’t understand. If you need to, offer a brief description. It will go a long way, I promise.

Use simple sentences

The longer the sentence, the more likely it is that you will confuse your reader. Don’t use 28 words when 5 will do. You should be able to describe what your business or software does in less than 5 sentences.

Be consistent

Once you use certain words and phrases to describe what you do, keep it the same throughout the site. The chances of customers understanding your services are much better.

Q&As are your friend

Think about what questions customers will certainly ask, and provide the answers right away. This is the easiest way to clarify details or provide more advanced information for people who have advanced knowledge.