Questions to Test Your Startup Ideas
After startup ideation comes to the testing phase.
It’s important to test your startup idea with these questions:
How many people need your solution?
Is that enough people to make the business work?
Consider how many customers you need at your chosen price point to make the business model work.
Then estimate how large the market must be as only 1-3% of the customers will buy from you.
Can you access those customers easily and at a reasonable cost?
If it’s too expensive to acquire customers the business model may not work.
Is the problem painful enough that they are actively looking for a solution?
It helps if the customer is looking for you rather than you trying to find them.
Are customers willing to pay for it?
If so, how much will the majority pay?
Based on these questions you can eliminate many startup ideas and focus on the ones that work.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Let’s go startup something today.
Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.