When you listen about numerous startup pitches, you begin to address that they all sink or swim on just a few primary points. Given enough time, you don’t even need to know what the product is.
Instead you just start inquiring whether or not the entrepreneur has the appropriate answer to a handful of questions that validate just about any startup idea.
Let’s explore what are those, so the next time you sit evaluating your startup idea this could come handy.
The Problem And The Solution
Irrespective of size big or small, every business solves some or the other prevailing problem . As entrepreneurial visionaries, we sometimes get fascinated with our solution at the expense of having a real problem to solve.
The value of a great business idea is directly proportional to the size of the problem it solves. For example, if I tell you I have the cure to AIDS, I don’t even have to tell you what the product is. You constitutionally understand what a massive problem AIDS is, so certainly any solution I have must be somewhat interesting.
You need to address the pain points of the society and then come up with a business idea which solves that problem effectively. Only then people will know and understand the maturity of your business idea.
Marketing And Sales
Although you may have come up with a very bright solution to address the problem, but it will do no good to you without the understanding of sales and marketing . Anyone telling you that a product will sell itself is a big fat lie. Understand unless you don’t bring people through the door, the products don’t sell themselves!
That’s why a powerful sales and marketing plan can be even more critical to your business than an initial revenue model. Don’t get me wrong, you can’t sustain your business forever without revenue. But I’m 100% sure that without any customers you’ll never have to worry about your revenue model.
Your revenue model should be simple – someone is willing to pay for what you offer. Whether they pay for it indirectly through advertising or directly through a purchase, there has to be a sustainable and readily identifiable revenue model.
When you’ve figured answers to all of these questions, then, and only then, it’s time to go start a company. Until, then, keep asking questions and evaluate your startup idea thoroughly.