What Makes a Good Idea?

by Dave Lupyan

Did you know that about 40% of all startups fail? Are you surprised by that number? 

Many entrepreneurs are so in love with their idea that they think it cannot fail. After all, “if I think it is a good idea, then it must be!”

After 40 plus years of developing new products and getting them commercialized I have discovered some helpful tips. I hope they help you. 

If the lightning bolt of creativity strikes you, make sure the idea resonates with the human condition and solves an obvious problem. Some concept areas that always seem to work:

1. Does it save time? (Think everything from shampoo/conditioner to Door dash)
2. Provides needed information quickly. (Think phone apps)
3. Increase personal safety or health. (Ring doorbells, Apple watches, Oura rings, etc., etc.)
4. Does it make a bothersome task easier? (The newest cleaning or cooking product, “as seen on TV”)
5. Provides superior personal comfort or reduces stress. (Sketchers slip-ins, Weathertech auto, etc.) 

There are two additional areas that are good but be careful because of the expensive path needed to educate the customer.

1. Better performance over something that’s already commercialized.
2. A better design (sexier, more efficient, adds more features) 

So, let’s say you have something that hits one of these key areas. So, what’s next? Here’s a list of activities you should start immediately.

1. Write down in simple terms what the problem is and how you solved it. Rewrite it several times. Be short, concise using 8^th grade verbiage. Tip: Use a PowerPoint slide, because you will need it for your eventual pitch deck.
2. Has anyone else thought of this? Tip: Simply ask your AI buddy.
3. Talk to others as much as possible. Practice verbalizing your initial value proposition. Tip: This will help you prepare a script for your customer discovery phase.
4. Do you have a platform or product? Tip: Investors love platforms. 

Now for the most important part!

Customer discovery: Identify your target demographic customer. Prepare a script asking 5 – 10 questions of how they currently do a task, solve the issue at question, or purchase the competitive in your category. Keep asking the same questions until you get the same answers. At the end you will have your best elevator speech and ultimate value proposition for your pitch deck.

Caveats:

• Social enterprises with weak value propositions.
• A weak demonstration of the product’s features & benefits. The demo should be powerful and compelling.
• Educating the customer for the need of the product. You should leave the potential customer with a “wow, I get it” feeling after demonstrating or reciting the value proposition.

Congratulations, you are an entrepreneur.