How do I know if a startup idea is good or bad for current market?
Do right thing happen at right time? — Good business opportunities may grab quickly because it make sense right now.The best business opportunities are typically things that didn’t previously feasible to do it, but have just become possible due to great market demand and trend. E.g. Cab services like OLA and UBER exist with the popularity of GPS-enabled smartphones, Facebook, with people have no time to meet their relatives.
What is your initial market? — It’s rarely impossible to build your “whole vision” all in one shot. Instead you typically need to start by being best and easy to get in the world at something very small, and then decide your path which way you want to go. E.g. Twitter started as broadcast SMS and then it become a huge platform to convey messages, Amazon started with book and right now?
What is your initial benefit in your initial niche? — What service are you providing, that others don’t, that unable you quickly become successful in the world at your initial niche.
In what extent you are making your costumers life easy — For example McDonalds’ realise that people can’t afford to wait for 20 minutes to get their food ready. They come up with the time saving process.To get someone to establish a new habit, you definitely need to solve a problem that consumer find “painful”, while requiring minimal changes to their existing lifestyle. The amount to which you need to be better depends on the amount to which you want users to change their behaviour.
Do you have enough amount of fund to resist sustain period of time? — It is very important that you have some financial backup before starting any business. You may find some unexpected expenses they have to be done or need extra fund for marketing. No matter how valuable your product is. Market is very noisy, if you can’t tell your story louder and clear you might be in trouble.
Is there a clear view of even bigger niches? — It would not happen that your initial niche is big enough to be a really important opportunity. You want to have a clear sequence of ever bigger market place which may help you to dominating each niche sets you up to dominate your next niche. E.g. Amazon starts from Books, to Electronics items, to now you name it.
Can you de-risk your key assumptions? — Any Startup business plan is going to rely on assumptions that might not be in your favour all the time. It’s crucial that you have a way to quickly figure out which plans are false so that you can improve your working method.
How are you going to earn money? — People who think about to make money not really can make money. Money is the byproduct of all your hard work, unfortunately, people reads motivational book to get charge up but, reality is “Motivation is just a trap” so,get up and work. At the end you get paid by how much changes you made in human life.