There’s one secret indicator!
It’s powerful to filter the good and bad!
It even differentiates success from failure!
What is it?
To answer your question, first tell me, what is the difference between these two pizzas?
STAGE I: PRODUCT PIZZA
PIZZA SCENARIO A:
PIZZA SCENARIO B:
NOW PAUSE!
Take a moment to think every difference you can find.
STAGE II: EXPERIENCE
PIZZA SCENARIO A: The first pizza is from Domino’s pizza.
It’s delivered with great presentation. It’s clean. It’s hot. The taste and quality of the pizza is amazing, plus it’s 100% guaranteed. It will be delivered to your home in under 30 minutes and if it doesn't arrive on the promised timeframe its will be FREE!
PIZZA SCENARIO B: The second pizza is from an old local pizza shop.
It is delivered with terrible presentation. It’s sloppy. It’s cold. The taste and quality of the pizza is yucky, plus there’s NO guarantee. It will be delivered to your home in 60 minutes… if you’re lucky!
NOW PAUSE AGAIN!
- Take your wallet out of your pocket.
- Open it.
- Take a $10 dollar bill out of the wallet…
TELL ME, WHO WILL YOU GIVE THAT BILL TO IN EXCHANGE FOR A PIZZA?
To answer your question: How do you know if a startup idea is good or bad?
What is the secret indicator? VALUE!
You need to identify what’s the value that your idea delivers!
Don’t analyze only the idea of your product or market. Focus on the overall VALUE that the product or service delivers!
Is it what your customers want?
Example: “I have an idea! I will sell pizzas!”
- Amazing business idea! — check!
- Pizza business has great potential! — check!
- Is there a big market? — check!
Are those indicators good enough to answer your question?
NO!
How can you know if YOUR startup idea is a good business?
IF AND ONLY IF you deliver the right amount of VALUE that your customers want enough to be willing to open their wallets and give you money in exchange of your delivered VALUE!
Learn from the example above; you can start a pizza business… you may deliver a pizza with unbeatable VALUE or not!
Proof of concept is the ONLY way to find out what your customers consider as VALUE. Ask them to open their wallets to pay you!
Execution is the second obstacle to tackle in your journey to achieve success!
Follow the Lean Startup Methodology!
-Hector Quintanilla
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