Do you have a great Startup Idea? I will show you a system that will let you evaluate a Startup idea in less than 5 minutes. We use 5 factors, 5 simple questions and you have a Startup Idea Score that will tell you if the idea is good or not so good!This post and framework are based on a YouTube video I did. If you prefer to see it as a video instead it is available here.This is about Startup ideas for scalable and fundable businesses. A small business or lifestyle business will do fine without passing this test.This is only something you do early on before you start building, after you start building other factors become more important. This test is there to check that you want to start building.The 5 factors are:ProductAcquisitionMarketDefendabilityBuildabilityWe will answer 1 question for each factor.An important note here, don't lie to yourself when you do the scoring be very truthful, Be pessimistic rather than optimistic,.Being too optimistic here is a really short-term strategy, you end up celebrating for 3 minutes that you came up with a great idea and then paying for the next 10 years because the idea really wasn’t that good. So be pessimistic and move quickly to the next idea if it isn’t very good.Now answer the questions below and give yourself a score for each one.ProductHow likely is it that you can build a product that is 10 times better than the existing way of doing things?0 Unlikely1 Yes, if the product comes out perfect2 Yes, there is at least a 50/50 chance of that3 Yes, for sureThe 0 is a disqualifier, if you can’t build something that is 10 times it probably not a great startup idea.AcquisitionCan you find and market to the users of this product?0 No,1 Yes, users can be found and paid marketing will probably work2 Yes, not a viral product, but will have some word-of-mouth growth3 Yes, the product is viral in its nature and it will find users automaticallyThe 0 disqualifies, is if you can’t find the users, that is a problem and it will make it really hard to get started and there might not be any way to launch the product.The best products are viral and find their own users, this is a clear 3, but is very rare. Give it one if you can only find the users through paid marketing and a 2 somewhere in between where there is some word of mouth.MarketIs the market big and growing?0 Market is not big and not growing1 Unsure of market size and growth2 Market is either big or growing3 Market is big and growingIn a perfect world, you give this a 3 if the market is big and growing. If either is growing it is a 2 not sure give it a 1. I would not recommend doing anything in a market that is small and not growing, so that is a 0.DefendabilityWhen the product gets traction will the product have unique features that are hard to copy?0 No, anyone can copy it easily1 We have a head start2 It will take a long time to copy, but it is possible3 Yes, it is very hard to copy.Investing in and figuring out how to build a product that anyone can copy right after is no fun. Investors are not willing to invest in products that anyone can easily copy. You have build some knowledge that puts you ahead of the field otherwise nobody will invest in you. It is much easier to raise money for a Startup that is defendable.BuildabilityCan you get the team, knowledge and capital to build this product?0 We don’t have it and will hard to get it.1 It will be possible to get the resources needed to build this.2 We have most of what is needed and can probably get the rest.3 Have everything and are ready to go!There is no point in starting with an idea that you can’t do anything about - an idea that you can’t build. I mean a flying car that takes you anywhere is 3 seconds would be great, but at this point is pretty hard to build.Now let’s put it all together and get that score!Let’s start with the math, it is really simple you just multiply all by each other.PRODUCT X ACQUISITION X MARKET X DEFENDABILITY X BUILDABILITY= STARTUP IDEA SCOREAlthough the highest possible score is 243 most scores come out between 1 and 100.You can just use a calculator or do like I do a simple spreadsheet.Here are some examples of scores:Facebook 162 -WOW!Uber 24WeWork 6DoorDash 18 - maybe not a great idea, but they’ve executed incredibly well.My advice would the following:Score under 10 - I would not do it, this will be an uphill battle.Score between 10 and 20 - I would think carefully about using the idea, probably not a great idea, but maybe you can improve on the idea and get over 20.Score over 20 and you’re probably ok, still the higher the better.In the end, it is all about execution, but you might as well start that execution on a great startup idea.Now it is your turn! Please test this with your own idea or any other idea and put it all in the comments. Maybe you find some flaws in the system. Please do challenge this and put it in the comments.A low-scoring idea doesn't mean you certainly shouldn't do it, it will just be a lot harder. see hubwealthy.com/wealthy
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