Half a million members creating, sharing and exploring great visual content. Join us!

Header

Transcript

10 Rules to a Great Startup Idea

10 Rules for a Great Startup Idea



Ideas don't matter, execution does. But even the world's best entrepreneur would fail with a fundamentally flawed startup idea.



At the Founder Institute, Founder & CEO Adeo Ressi preaches a structured approach to analyzing your ideas. If you can check off the items below, then you can greatly increase your chances of success.



1. You are passionate about it



If you are pursuing an idea just to make money, then stop right now. Money can be a great motivator, but it won't get you through the dark times of being an entrepreneur.



Are you so passionate about this problem that you can see yourself working on it in 10 years?



2. It's simple

Big ideas are raised, not born. mark Zuckerberg didn't wake up one morning and say, "I'm going to create the social graph."



All the great businesses of our time started with something simple, and then expanded upon that. Start by solving one problem, with one product, for one customer.



A

BC



3. One revenue system



A startup would be more than lucky to execute on just one revenue stream, let alone three or four.



So, focus on one to start, and if you can't identify one revenue stream that can support the business, then it's a bad business.



4. Few steps to revenue



How many things need to happen before you make a dollar? By going through this exercise you can identify the number of stakeholders involved, which equals complexity.



No more than 3 steps to revenue is ideal.



$



5. You know the customer



From the outset, you need to intimately know of one very specific archetype who desperately needs your product.



And, there's nobody you know more intimately than yourself. That is why so many great businesses have been formed from personal need.



6. You know the market



How can you possibly have a meaningful vision about the future of a market if you are not a leading domain expert on that market?



If you are not an expert, then get to work!



$ %



7. Sufficiently large market



Any market with < 10 million people or multiple billions in annual revenue will be very hard to address, and is not worth your time. For example, if you won a $500m market, you would still only have a ~$50m business.



You will die winning a small market, so don't start up in a graveyard.



8. Original secret sauce



Is what you are doing unique, or better, than everybody else? Do you know a secret that nobody else does?



Be bold, because the best ideas are transformational, not incremental.



SECRET



9. You have tried to kill it



Positive reinforcements are very easy to find, but your job in the idea stage is to find the things that make your idea bad.



Then, one-by-one, eliminate those negatives through iterating on you idea.



10. You are sharing your idea!



The chances that someone is going to drop everything and devote their lives to executing your idea are slim to none. You are much better off getting as much feedback as humanly possible.



"Don't worry about people stealing an idea. If it's original, you will have to ram it down their throats."

-Howard Aiken

Download the latest issue of the Visualist, our guide to visual content strategy.

10 Rules to a Great Startup Idea

shared by Founding on May 20, 2013 in Business

10 Rules to a Great Startup Idea

shared by Founding on May 20, 2013 in Business

5K views

13 faves

2 comments

There's a common misconception floating around Silicon Valley that ideas mean nothing, and execution means everything. But the reality is much less binary and much more nuanced. If you can check off ...
Source: Unknown. Add a source
Rank: 137 of 15888 in Business

Published by

Designed By

Andrea Chen

Embed Code

Switch to Wordpress Code
Click below to copy
Customize size

Tell your story visually before December 31st and get a free iPad Air!*

The holidays are a great time to tell your brand story. From Black Friday trends and Mobile Shopping guides to the Best and Worst Times to Book Travel and Thanksgiving etiquette, the Visually team will help you craft your brand's unique stories and raise your social profile during the noisy holiday season.


*Requires $10k minimum purchase
Infographic
Video
Interactive
Presentation

60 characters minimum (0)

X
Credits
Publisher
Designer
Developer
Animator
Journalist
+ Add More Credits
Make Private

This is the final step