How to Evaluate Your Startup Idea

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    06-Sep-2014
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Before your idea can grow into a startup, it has to pass a few sniff tests. Is there a demand for what you’re creating? What resources will you need to make your idea come to life? Boundless co-founder and CTO Aaron White will be on hand to give you all the info you need to make your idea ready for the rigors of startup life.

Transcript of How to Evaluate Your Startup Idea

  • Evaluating Your Idea you do vet them dont you??
  • Demand First ExperienceConstruction Value Capture Distribution Positioning
  • Demand First ExperienceConstruction Risks Value Capture Distribution Positioning
  • Common MistakesIve made all of these once, twice, three, four times...
  • Mistake #1People want it
  • Mistake #2Lots of people want it
  • Mistake #3Its easy to explain
  • Mistake #4I built it, they will come
  • Mistake #5Its obvious how to use it
  • Mistake #6Theyll remember to use it
  • Oh god, Im doomed. well, not quite..
  • As with most things,start w/ a framework! Just so happens Ive got a few for you!
  • #1 Business Hypothesis Specify your dream
  • Day Month Year No.Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value?Who are our key suppliers? Our Distribution Channels? Which one of our customers problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers?Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established?Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model? How costly are they? What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments Our Distribution Channels? Customer Relationships? want to be reached? Revenue Streams? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines?What are the most important costs inherent in our business model? For what value are our customers really willing to pay?Which Key Resources are most expensive? For what do they currently pay?Which Key Activities are most expensive? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
  • #2 Enumerate RisksWhat should you be worried about... in order!
  • Validation Board Project Name: Team Leader Name: Solas Bar 232 E. 9th Street Track Pivots Start 1st Pivot 2nd Pivot 3rd Pivot 4th Pivot Tip: For two-sided markets, Customer always validate the riskier side first Hypothesis Remember: Problem Limit one sticky-note per box Write in ALL CAPS Hypothesis Do not write more than 5 words on any sticky-note Solution Tip: Do NOT define a solution until youve validated the problem Hypothesis Design Experiment Track Pivots Riskiest Results Invalidated If Invalidated, pivot at least one Core Hypothesis Validated If Validated, brainstorm and test the next Riskiet Assumption Tip: Clear all post-its from this area after each experiment is completed