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How to check the viability of a startup idea

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How to check the viability of a startup idea

#1
I thought it would be cool to share with each other how to check the viability of your startup idea.

To kick off, I'll share with you what I do whenever an idea pops to mind.

1) Adwords keyword tool First I go to the Adwords keyword tool, to find out if people actually are looking for my idea/future product. You can check per keyword how many searches per month there have been done and if there's a lot of (SEO) competition.

2) Surveys I setup a survey for potential customers. In the survey I try to find out if my assumptions are right. I use this survey for step 3 and 4.

3) Run Google ads Running Google ads is a great way of checking my assumptions. I emphasize different benefits per ad. This way I can check what benefit appeals the most. The more clicks, the more important this benefit is, the more this should be the focus point of the product. The ad leads to my survey. Not so many people take the time to fill it in, but still it is some extra data.

4) Meet with potential customers Although I always find it hard to take this step, I know it's important. These meetings can motivate tremendously, can force to iterate my idea, or make me decide it was a stupid idea. The survey comes in handy in these meetings as well, btw.

So that's my viability-check. I'm wondering what you do to check viability. Looking forward to your ideas and advice!

ps. I'm sorry if I made some mistakes in my English. I'm no native speaker and I know that especially grammar tenses are not my forte...

Re: How to check the viability of a startup idea

#2
http://news.ycombinator.com/item?id=2232357

http://news.ycombinator.com/item?id=2034790

http://news.ycombinator.com/item?id=2194110

http://news.ycombinator.com/item?id=2193075

http://news.ycombinator.com/item?id=2115146

http://news.ycombinator.com/item?id=2079237

Re: How to check the viability of a startup idea

#3

http://news.ycombinator.com/item?id=2232357 http://news.ycombinator.com/item?id=2034790 http://news.ycombinator.com/item?id=2194110 http://news.ycombinator.com/item?id=2193075 http://news.ycombinator.com/item?id=2115146 http://news.ycombinator.com/item?id=2079237

The Quora thread is great. Thanks!

Re: How to check the viability of a startup idea

#4

http://news.ycombinator.com/item?id=2232357 http://news.ycombinator.com/item?id=2034790 http://news.ycombinator.com/item?id=2194110 http://news.ycombinator.com/item?id=2193075 http://news.ycombinator.com/item?id=2115146 http://news.ycombinator.com/item?id=2079237

You should rename yourself RiderOfEncyclopedicKnowledgeOfHNDuplicates :-)

Re: How to check the viability of a startup idea

#6
post #4

http://news.ycombinator.com/item?id=2232357 http://news.ycombinator.com/item?id=2034790 http://news.ycombinator.com/item?id=2194110 http://news.ycombinator.com/item?id=2193075 http://news.ycombinator.com/item?id=2115146 http://news.ycombinator.com/item?id=2079237

You should rename yourself RiderOfEncyclopedicKnowledgeOfHNDuplicates :-)

I know I'm giving away my secrets, but:

http://searchyc.com/submissions/startup+idea?sort=by_date

Re: How to check the viability of a startup idea

#7

Henry Ford once said that, if he’d asked his customers what they wanted, they’d have asked for a faster horse.

That's not to say you shouldnt ask what they want. What you have to do as a visionary is to interpret their answers into what it is that they really need.

Re: How to check the viability of a startup idea

#8

Henry Ford once said that, if he’d asked his customers what they wanted, they’d have asked for a faster horse.

But doesn't that tell you what his customers wanted? They wanted something faster. They just didn't know how. You always have to know what people want. Delivery in a way that they don't expect it is what converts the need into a "revolution"

Re: How to check the viability of a startup idea

#9
post #7

Henry Ford once said that, if he’d asked his customers what they wanted, they’d have asked for a faster horse.

That's not to say you shouldnt ask what they want. What you have to do as a visionary is to interpret their answers into what it is that they really need.

True. But here I agree with Fred Wilson (http://www.avc.com/a_vc/2011/02/mba-tuesday.html).

He says: "Early in a startup, product decisions should be hunch driven. Later on, product decisions should be data driven."

I talked to Jack Dorsey of Twitter about quite the same topic when he was in Russia last Feb. And he didn't tell me he asked people a lot before starting. He just built something around idea he had a strong obsession about and everything else is a history.

Re: How to check the viability of a startup idea

#10
You have a great method and you will one day strike the right vein.

My assessment, from being a student of entrepreneurship, is that the success stories reflect a mixed bag. Some are methodical and swear by it (ask, build, deliver), and others are hunch oriented and lucky, though the latter is clearly a much larger risk and the path to profitability akin to winning a lottery.

What do the Ivy League MBA's have to say on this?

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