Every great start-up begins with a great idea but it takes massive effort to put that idea into execution and make it successful. When you look out to make it on your own and ask yourself how to launch a startup, having a great idea is just the beginning. Here are a few walk-throughs that will not only help you in conceptualizing a good business idea but also help you make the best decision for your startup. Let’s dive in.
Have many innovative ideas in your head, but not sure where to start? Feeling overwhelmed by all the capable ideas, niches, and business models out there? AVCOE has put together a useful decision matrix that can help narrow this down into a thoughtful decision.
Every great start-up begins with a great idea but it takes massive effort to put that idea into execution and make it successful. When you look out to make it on your own and ask yourself how to launch a startup, having a great idea is just the beginning. Here are a few walk-throughs that will not only help you in conceptualizing a good business idea but also help you make the best decision for your startup. Let’s dive in.
- Define your problem statement
First of all, you need to be clear on what problem or pain points your target audience is facing. That pain point should be the focus of the product, idea or service you have in mind and aim to address it. Do not start with the end solution or technology in mind, and then work back to a problem. Instead, analyse the problem and use whatever tools are necessary to solve it. Try validating your ideas with real customer or end-user insights rather than relying on your own instincts and preconceptions.
The problem statement lays out the
current state and the gap in customers’ experience. Spending the right amount
of time and effort on defining a clear problem statement can help increase your
chances of providing a solution that meets the needs of your consumers and
generates real value.
- Analyze how differentiated or superior is your offering
Consider putting yourself in the shoes of your customers. Analyze how different is your product or service compared to what is already available in the market. Does it provide some extra value? Does it improve the current process in a way that only few others do?
You do not always need to be a grand innovator. Smaller improvements to existing solutions can also make the consumer experience better.
- How desirable is your idea, product, or service?
How much do your future customers want
it? To what degree does it solve enough of a problem, that they will be willing
to use it? You can test this by conducting a detailed online survey or also
interviewing your future audience.
- How viable is it?
Will it return a profit, or at least break even in the near future? What will be the possible ROI (Return on Investment)? You need to be clear on what your ROI milestones would be. List out all the known costs and benefits from the solution and make sure the pros outweigh the costs over your startup’s lifespan.
- Does it utilise your skill-set?
Will you be able to utilize your skills and competencies to your fullest potential to work on the idea? Having clarity on your skillset, and where the gaps are, can help you get a rough estimate if your idea can extract your skillset.
- Analyzing the potential for early adoption
Early adoption are users or customers who are able to test your offer before it goes out to the wider market. If a product or a service has a well-defined target audience, it can be easier to identify and reach out to them. This can be a great opportunity to get early feedback to tweak and refine your offering.
- How passionate and curious are you about this?
Last, but not the least! Think about how passionate you are about the idea, product or service. Would you be a user/consumer of it yourself? Do you feel connected to the value delivered behind it, and does it align with your own values and beliefs?
You will need to feel genuinely curious if you are to be in it for the long haul and avoid burning out. Besiders, your lack of genuine care and passion could ultimately stifle your business’s growth.
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