Steps To Evaluate Startup Ideas

Building a digital business is not just selling a digital product, but also far from that a business owner must be very observant of the situation and conditions that the market needs. Currently, there are many digital-based startups that offer various conveniences for doing things. Changing traditional habits that were often done in the past is now turning into online or online activities, it is not as easy as turning the palm of the hand.

Many mistakes are made by business people , one of which is running a business without evaluating the business idea. Though this is important to do in order to know whether the idea is good enough and can be implemented or not.

Before making a change, you should take the time to research and analyze the business idea as objectively as possible, such as:

  • Who are the target users? This question must be answered with a more specific target. 
  • What problem do you want to solve? The purpose of answering this question is to limit assumptions going too far. Before getting busy thinking about the feature or technology to be used, identify exactly what problem you really want to solve.
  • How can the product to be developed solve the problem? After successfully understanding the problem, this question places the idea or product in a position to what extent the product to be developed provides benefits and is able to solve the problem.
  • What are the differences and advantages? In the midst of a startup industry that is starting to rise as it is now, it will be very difficult to find completely new ideas. The next evaluation is what makes the difference compared to existing products.

The easiest way to evaluate ideas is to open a discussion with close friends or people who are considered to understand the problem at hand. Listening to suggestions and opinions from trusted people is one way to evaluate ideas. By exchanging opinions, people will see how the solutions the business owner offers have an impact on them. If indeed the solution offered is deemed necessary, at least the business owner can execute it because the idea is indeed needed by the market.

However, if the opposite happens, the business owner can pivot the business. Business pivot can be interpreted by changing the idea as a whole by finding a new idea that is more acceptable. Here are the steps for evaluating a business idea that you must do:

Start with something realistic.

The first stage of making an idea grow is to convince people that your idea can be a realistic thing to realize. Your idea doesn’t need to be perfect because other parties, including investors, can help you develop it.

Competitor Research

Focus on similar businesses targeting the same market segment as you. Don’t compare your product with business people whose market segmentation is different from yours from the start. So you don’t make lopsided comparisons. seek information about who the competitors are in the market, including the usual competitors and the most threatening competitors. Next you have to know the type of competition you are facing, find out the competitive advantages of your business compared to competitors, analyze their strengths and weaknesses, and try to be better than their weaknesses.

Perform a financial analysis Financial

analysis is an important factor for your business. This includes how much capital is needed to start the business, where the initial funding will come from. It also includes how much potential business income is, what is the range of business expenses, and whether the income earned can cover it, and to what point our capital can be BEP.

By doing a financial analysis, you can consider potential sources to earn income, invest, and get the most suitable credit. 

The readiness of the product that has been tested before being launched will make the business owner more confident about the product and that the product is really needed by consumers.

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