Everyone knows starting a business is hard work. But how important is the idea itself to achieve success?
— Imagine this: Facebook – for dogs!
— So, what about an app like Uber, but for hairdressers?
— It will be the first 100% gluten-free food delivery app!
Working in software, we get a barrage of ideas from friends, family, and clients. Whether the idea is great or not so much, all aspire to be the next million-dollar tech startup. The conversation will inevitably turn to the question, "Do you think this idea is worth it?" Let’s say the world has been desperate for a way to socialize through their dogs. As genius as it may be, unfortunately, it’s not the idea that guarantees success.
Ideas are tough to turn into actual products. And it’s even harder for these products to find their market and become profitable. Most thoughts never pass the idea stage. That can be due to a lack of time or money and not knowing how to start a business. Thus, it’s not the idea that has value. Instead, it’s the method you use to apply the idea.
The Roadmap to Successful Startup Ideas
1. Startup Value
How to create a value offer for a startup?
The product you want to make must have a clear value offer for users. Not only that, it should be invaluable. Is it so good that once users try it, they need to have it? A great example of this is Uber and its value proposition. “Traditional taxi service got flawed. We can make a better experience with on-demand, cashless rides with GPS”.
2. Startup Research
How to do research for a startup?
Research can start with a simple Google search. Then it can expand to a complete feasibility study of market trends and analytics. Yet, the most crucial factor is defining and engaging potential customers.
To build a Facebook for dogs, you should interview dog owners. Do they follow other people's pet accounts? Are they looking to find playmates for their dog? What limitations do they see in existing social networks? The main idea behind this is to discover solutions for potential clients' problems.
3. Startup Validation
How to validate a startup idea?
A good idea has gone through tests and shows excellent chances of being profitable. A good example of this is the email client startup Superhuman. The venture achieved more than 100,000 people signing on their waitlist. This was before they released the product! They generated interest through their exclusivity and unique onboarding processes. These waitlists meant a green light to invest fully in the project. It may be tricky, but finding a way to test an idea is essential. You can find hundreds of dog owners interested in your social networking idea. Yet, the app is not worth building if you don’t get proof they will use it.
4. Startup Monetization
How to capitalize on a startup idea?
An idea with a monetization strategy becomes a business. Yes, a product can be excellent, but it won't survive long if it's not profitable. There are many strategies to monetize a product. These can include ads, purchases, subscriptions, and even data selling. Foursquare sells the data it collects. Later, it uses it to show its users' relevant points, like the most visited places nearby. When it comes to purchases, it's vital to test if users are willing to pay and how much. You can create a dummy "buy" button (without a finished product or payment). This will let you know how many visitors aim to buy it.
5. Startup Planning
How to plan a startup idea?
The formality level of a business plan will depend on the product. For startups whose direction may pivot, this plan could become obsolete. Still, all types of startups need to articulate their goals and plan. This helps both create internal strategies and show the project to potential investors. A business plan should address all the discussed items. Furthermore, it should have a marketing plan, financial projections, and a business model and plan for scaling. Knowing starter resources and their costs is key to creating a funding and revenue plan.
6. Startup Technology
Which technology is better for a startup idea?
In impact terms, the solution is more important than the novelty of the tech to create it. Still, in some cases, technology is critical to the solution. For instance, a product can use a unique algorithm that makes it superior to competitors. Algorithms using buyer behavior to display targeted ads are a great example.
7. Startup Roadmap
What is the roadmap of a startup idea?
This is an implementation plan from a technical perspective. It must break down what you need to do and for how long. The main benefit of it is that it helps to define resources, preventing unexpected costs.
8. Startup Funding
How to fund a startup idea?
Some will say that funding is essential. Others may believe it can detract value from a sustainable business. Regardless, you must consider if it’s right for your product.
9. Startup Team
Who is part of a startup idea?
It can be argued that the people behind an idea are the most crucial part of its success. Invaluable factors include technical knowledge, business savvy, and sales skills.
Conclusion
Ideas are the spark that can start a business. For a startup to succeed, solid business skills and planning are essential!
