Have a great idea, but not sure if it’s doable? Before you jump head first into launching a startup, ask yourself these questions. You’ll have a far better idea of whether your idea is a worthwhile investment.
What’s your idea?
Be able to articulate exactly what you are trying to accomplish in a few sentences or less (often called an elevator pitch).
Are you solving a problem?
In other words, what will your business do to solve problems for your customers?
Is somebody else already doing the exact same thing you are trying to do?
You don’t need to reinvent the wheel, but if you are doing something similar, you need to make sure your idea has a unique spin and/or you can do it better.
Is your idea capable of being copied?
Even if your idea is 100% original, you want to make sure that you have a solid business model that is not easily replicable.
Did you do a SWOT analysis?
Think Strengths, Weaknesses, Opportunities, and Threats. List these out to make sure you are covering all your bases.
Do you have a mentor?
Find someone who is experienced in your field or has a successful track record with launching businesses. Have them guide you and offer you support along the way.
Who is your target market?
List out all of the key attributes of your consumers so you know how to market your idea to the right crowd.
How much of an investment will it take to launch a minimum viable product?
The first product you put out to the market does not need to be the best. Start small and assess interest in your product. From there, you can start tweaking and enhancing your product until it is in perfect condition.
Do you know how much it will take to break even or start making a profit?
You need to know these numbers, otherwise you’re setting yourself up for potential failure from mismanaged funds.
Who will invest in your idea?
This question takes a great deal of research and understanding. If it’s not going to be you, try to list out who would be most interested and ways to get in contact with them.
These questions are only the start. As you develop your idea and business model, you will find that you’re welcomed by a hundred more questions. There is no need to get overwhelmed though, half the fun of launching a startup is developing your ideas and embracing conversations about these questions with your team.
What question do you think is most important when launching a startup? Tweet @StarterNoise.
Derek Rundell, is a successful business leader, operator, and serial entrepreneur. Derek has founded, managed and sold businesses in the technology, media and finance industries. He sits on several boards and serves as an advisor/investor to numerous established businesses and startups. Startups are Derek’s real passion, and in addition to building his own portfolio of technology, media and financial ventures, he invests in and mentors startups and entrepreneurs. He is passionate about sharing his knowledge and helping other businesses succeed.