Startup idea evaluation

Main source Y combinator talks

Don’t forget to write things down in a clear, non-abstract and concise way - this might help with feature creep among other things.

Problem

Problem must have as many of these characteristics as possible:

• Popular (many ppl have this problem)
• Growing
• Urgent (ppl want to solve the problem today)
• Expensive (the problem’s impact must be big, so that customers will be willing to pay for a solution)
• Mandatory (e.g. the law changed and now everybody must fix something)
• Frequent

Solution

Do not start with SISP (Solution In Search of a Problem). Does it scale?

Insight

Unfair advantage - Why don’t other companies solve the problem?

As many of these characteristics as possible:

• Founders - Are you the only one who can solve this problem? Can you build it? Can you sell it?
• Market - is it growing?
• Product - is your product 10x better than competition?
• Acquisition - how do you get more customers? is throwing money at advertising the only way?
• Monopoly - do you have something that makes you stronger as you grow. How hard is it for somebody to copy you? Do you have a patent?