Before launching a new venture, it generally pays to do some research to understand a little better what it is you’re getting yourself into.
However, researching can be a daunting process. The first problem is knowing where to start. Here’s where I come in. What follows are the absolute minimum 10 questions to which you ought to have a fairly comprehensive answer.
1. Can you explain your idea in less than 10 words?
2. Do you know what problem your idea will solve?
3. Could you describe your ideal customer in detail?
4. Do you know why your customers want to solve that problem?
5. Do you know how much your customers want to solve that problem?
6. Do you know where your customers go to buy the product or service to solve that problem today?
7. Do you know how much your customers are willing to pay to solve that problem?
8. Do you know who and what is solving that problem for your customers already?
9. Do you know what will make your customers come to you to solve that problem instead of your competitors?
10. Do you know how much it will cost you to solve that problem for your customers?
Over the course of the next few days I shall be focusing on the how and why of each of these in turn, offering some guidance on how to understand the answers and making sure you can spot any red flags or golden opportunities.