Wouldn’t it be great if you could validate your startup idea in less than one hour because you absolutely, positively have to validate your startup idea?
There are seven steps that you need to take to validate your startup idea. And I’m betting you can do them in less than one hour.
Let me give you an idea of what we’re trying to accomplish here. The idea is not to be perfect with your analysis. The idea is to give you a go/no go idea of if it makes sense to go forward.
So how do you do this? It’s essentially to go through these seven steps. If you can make it through each step, go forward. If you can’t make it through a step, then you have a choice.
You can give up on the idea, or you can do more work. However, I’m betting if you get 80% of the way there on each one of these steps that you’ll know whether you’ve got a good startup idea.
Step number one: Validate the market size.
You have to understand how big the market is that you’re playing in. So, how do you do this quickly?
In today’s world, you have Google. You can search for this, and you can get a basic idea of how big the market is that you’re going after.
There are two methodologies you can do here. The first is top down. In other words, you understand the global market size for what you’re going after is X.
The second methodology is bottoms up. For example, you know that each unit that you’re going to sell, you charge X for. You know that there are Y number of customers out there in the world for what you’re doing next time.
That gives you the size of the market. You can do the bottoms up and top down analysis really quickly using Google.
So why do you need market size? Well, what if the market is not big enough to achieve what you want for your business. Then you got to go back to the drawing board again. That’s why it’s important to understand how big the market is.
Step number two: Can you recruit the team you need to win?
Can you recruit your team? Can you find the people you need? Will they join you…