If someone asks if their startup idea is good, and it’s not a good idea to tell them one way or another, what to do? Easy, help them by asking key questions for them to consider, so that they can make the assessment on their own, based on feedback from people in the market. Here are a few potential questions to ask:
- How many potential customers have you talked to about the idea?
- How much did the potential customers say they’d pay for the solution?
- How many potential customers are out there?
- How expensive will it be to acquire customers?
- How will potential customers justify the ROI for the solution?
- Is the solution a must-have or a nice-to-have?
Clearly, it requires time and a number of conversations to evaluate if a startup idea is good. The best place to start: potential customers.
What else? What are some other questions to ask to help an entrepreneur evaluate if a startup idea is good?
3 thoughts on “Evaluating if a Startup Idea is Good”
Great article, lots of advice for people looking at starting something….thanks for sharing!
Unique selling proposition – How will you differentiate your products from the competitors’ products?
I would say that the first place a business person needs to look is – what made them decide to pick this product or service as a prospective start up?
There are plenty of people out there who want to become business people but just don’t have an idea. To me this is a dangerous place to start, because you are in it for yourself, not for what you can do to help others….
I do believe this is the key to business success. If you are giving something to others that will benefit their life in some way, then there is a place for your start up in the market. If you can’t see this as your primary reason for being in business, watch out, money can disappear really fast!