If you're hoping to develop a startup, you should be vigilant in keeping a log of every problem you encounter each day; the root function of every single business, product and service is to be the solution to its specific problem.
Basing your entire project around a problem rather than a product is almost always beneficial; it challenges you to make your product or service better during the developing stages rather than simply rushing through it to get an end product. It also provides insurance against design problems; if something happens that prevents you from being able to go forward with a particular design, you'll already have other proposals ready to rotate into place. On the other hand, if you're trying to build a product and you're unable to build the product...well, you get the point.
So, let's say you've done your brainstorming and found a unique solution to your problem, good job! Now, we've got one more thing you do before you can officially say you're working on a new project. We need to run a litmus test to ensure your newfound solution doesn't have any major issues that would hinder your progress down the road.
In our test, your metaphorical litmus paper is going to be your common sense. I'm going to ask you several questions pertaining to your new project, and you need to write down your answers so that you can evaluate your project at the end. You definitely want to take this exercise seriously, but don't stress yourself out or start overanalyzing every little detail -- not yet anyways. All we want to do is put together a basic overview of your project and then ask ourselves "does moving forward with this project make sense?" before you start dumping hundreds of hours into it.
In essence, what you're doing here is a very informal SWOT analysis. If your idea passed the test, you'll be doing a much more detailed one to show investors and partnerships in the future, so do yourself a favor and keep up with this exercise!
The common sense litmus test:
How many people experience this problem?
Ask yourself how many people you know personally that have encountered this problem. Take an educated guess on how common you think the problem is when considering a much wider audience, such as the entire nation. Write down what demographic you feel is most likely to encounter the problem. If you can answer each of these questions, you've got a rough estimate of your target audience; refer back to those numbers when answering the next several questions.
How often do those people experience this problem?
It's important to know whether your customers will be coming back or not; if not, how quickly will demand for your product falter? If the problem is recurring, how often will customers need to buy your product? These questions are extremely important because they will set the tone for your entire marketing and branding campaign.
How many products already offer a solution to this problem?
Your competition is not limited to products that solve the problem at hand the same way as your product, so make sure that you include every product currently on the market that is designed to solve the same problem as your campaign is working on.
Is my product better than what's currently available?
Write down ways that your product could stand out from the competition; extra features, quality, durability, user interface and price point should be considered as well. Make a list of pros and cons for both your product and your competitor's to help figure out your strengths and weaknesses.
How many people will I need to hire?
Write down the number of employees you'll need to comfortable run your new business. Make a list of each employee's job title based on your needs.
Is the product viable?
Here's where everything ties together; compile all of your estimates on one page for a comprehensive overview of your idea. If you wrote down the answer to each question as you went, you should know whether you'll be able to move forward to the research and validation process with your current idea.
For those of you who made it past the common sense litmus test with your idea, congratulations! In the next section, I'll cover how to validate your idea and conduct market research.
Here's where everything ties together; compile all of your estimates on one page for a comprehensive overview of your idea. If you wrote down the answer to each question as you went, you should know whether you'll be able to move forward to the research and validation process with your current idea.
For those of you who made it past the common sense litmus test with your idea, congratulations! In the next section, I'll cover how to validate your idea and conduct market research.
In the next post: "Starting a startup: Developing a plan" (Step 1-4 of your business plan.)
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