So you want to create your own startup but how do you know if your idea is a sound investment? Here are a few tips to help you vet it:
How qualified is the team?
- Do they have unique insight?
- Do they have the necessary technical experience?
- Do they have the design capabilities to bring the vision of the product to fruition?
Know the market opportunity.
- What is the depth of the problem that this particular product or service is solving?
- The market size and growth rate has to be compelling.
Understanding product quality.
- Making sure the market-product fit has some early traction is key to predicting whether or not it has long-term potential.
Anticipate the revenue model.
- Whether it’s transactions, subscriptions or marketing, know which mode of revenue generation your product will thrive in.
Determine the operational approach.
- How are you bringing this product to market? Do you have any competitive advantage in doing so that other businesses don’t have?
If you take the above points into consideration as you develop your product or service, you will be able to understand the quality and potential of your business idea within the marketplace.
Dinesh Moorjani, founder and CEO of Hatch Labs, gives advice on evaluating ideas and the teams pitching them.