Will your startup succeed? — a self checklist (part 1)
At Future Branch, we’ve learned a lot about startups. We created a self-checklist to help determine if you’ve got the mettle. Find part 2 here and part 3 here.
The Idea
The number one issue we see with startups is that engineers like to build things. Now, this doesn’t sound bad on the surface, but many times founders have a solution that they want to build despite not fully understanding the problem space.
It’s more important to solve a problem than to create a solution.
1. Problem size
How many people have the same problem you are solving? How many people are willing to pay for it?
Are you solving a problem that is large and urgent? Is this one of the top 3 problems your target market experiences? If so, you’ve stumbled upon a Tier 1 Problem.
Many times people have problems that others have, but they aren’t willing to pay for solutions or it isn’t one of the top 3 problems they have. Unless you might these criteria, they will focus on other more important problems they have.
2. Talk the talk
How many people have you talked to about the problem you are solving? Did you mention your solution? No? Good.
Talk to at least 50 people about the problem you intend to solve. Does 50 seem like a daunting number? Building a startup is much harder. Your goal during these discussions is to fully understand the problem space. Maybe you’ll discover a solution that is better than your original or that there is no budget to pay for solutions. Do not mention your solution.
3. Do your homework
Who else is competing in this space? Who is working on the problem right now?
Now that you’ve talked to 50 people that have the same problem, you need to spend time finding out who else is working on solutions. This is a full team job and we recommend creating a shared spreadsheet and constantly keeping it up to date.
“Your solution needs to be at least 10 times better than what is currently out there.”
4. Defeat human nature
Now that you’ve made a list of competitors, is it worth building your product? You might get lucky and find a problem that no one is currently working on. This is called a blue ocean.
If there are competitors, your solution needs to be at least 10 times better than what is currently out there. Users don’t like to learn new things and you need a very large lead to convince them to switch and prevent your competitors from catching up too quickly. Be wary of providing a cheaper product unless you are massively disrupting the market. You don’t want to get into a race to the floor price.
5. Put up or shut up
Now it’s time to go back to your list of problem experts from step 2. Propose your solution to them and get their feedback. You’ll need to spend at least $50 validating your proposed solution with members of this group. Why $50? You’ll spend a lot more on building your startup, so if you are hesitant to spend $50 then the solution isn’t a very good one.
Next
We’ve come to the end of Part 1. Next we’ll learn about the business requirements. Please explore my other stories here. If you’ve liked this, please hit the 👏 or follow. Thanks!
Oh and don’t forget to take the self-checklist.
