{"id":33,"date":"2021-02-04T23:29:33","date_gmt":"2021-02-04T23:29:33","guid":{"rendered":"https:\/\/zettasher.com\/blog\/?p=33"},"modified":"2021-03-03T23:39:51","modified_gmt":"2021-03-03T23:39:51","slug":"how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it","status":"publish","type":"post","link":"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/","title":{"rendered":"How To Validate A Tech Startup Idea without Coding, Part 1"},"content":{"rendered":"\n<p><strong>Last updated on&nbsp;February 11, 2021&nbsp;by&nbsp;<\/strong><a href=\"https:\/\/zettasher.com\/about.php\">Hong Zhuang<\/a>  <br><\/p>\n\n\n\n<p>Reading Time:10 min <\/p>\n\n\n\n<p>Are you a new entrepreneurs whose goal is to launch a tech startup from scratch and get it funded by pre-seed or seed investors?<\/p>\n\n\n\n<p>If yes, this blog, the first part of a validation series, will help you do a <strong>preliminary validation without diving deep into validating i<\/strong>t. You will find out if your idea<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>support your goal of building a successful, funded startup. <\/li><li>help you avoid the most common deadly mistakes which haunt many first-time entrepreneurs.<\/li><li>be attractive to pre-seed investors.&nbsp;<\/li><\/ol>\n\n\n\n<p>Then you can decide whether you should abandoned your idea or do more validation.  <\/p>\n\n\n\n<p><strong>What <em>are<\/em> the necessary ingredients of a good idea<\/strong>? It should contain the following 3 elements:<\/p>\n\n\n\n<ul class=\"wp-block-list\" type=\"1\"><li>Passion<\/li><li>&nbsp;Worthiness<\/li><li>Competency<\/li><\/ul>\n\n\n\n<p>&nbsp;If your idea lacks any one of the elements, it will ruin your chances of success. Why? Let\u2019s review how you can assess the above elements using a three-step startup idea validation process.<\/p>\n\n\n\n<p class=\"has-white-background-color has-background\">How to Decide If Your Tech Startup Idea Is Good To Get In?<\/p>\n\n\n\n<ol class=\"has-black-color has-blue-background-color has-text-color has-background wp-block-list\"><li><em>Do I have a passion for my startup idea?<\/em><\/li><li><em>Does my idea solve a big business problem from my personal experience?<\/em><\/li><li><em>Can I execute the idea and deliver the desired results successfully?<\/em><\/li><\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"639\" src=\"https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/03\/Startup_idea.jpg?resize=750%2C639&#038;ssl=1\" alt=\"\" class=\"wp-image-205\" srcset=\"https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/03\/Startup_idea.jpg?resize=1024%2C873&amp;ssl=1 1024w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/03\/Startup_idea.jpg?resize=300%2C256&amp;ssl=1 300w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/03\/Startup_idea.jpg?resize=768%2C655&amp;ssl=1 768w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/03\/Startup_idea.jpg?w=1536&amp;ssl=1 1536w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e50803ea69d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e50803ea69d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Step_1_Do_I_have_a_passion_for_my_startup_idea\" >Step 1:Do I have a passion for my startup idea?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Why_is_passion_necessary\" >Why is passion necessary?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Do_you_know_your_passion\" >Do you know your passion?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#How_do_you_connect_your_passion_to_you_heart\" >How do you connect your passion to you heart?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Why_does_this_exercise_reveal_your_passion\" >Why does this exercise reveal your passion?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Step_2_Does_the_idea_resolve_a_big_business_problem_from_my_personal_experience\" >Step 2: Does the idea resolve a big business problem from my personal experience?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Why_is_the_answer_for_this_question_is_necessary\" >Why is the answer for this question is necessary?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#What_do_I_mean_by_loosely\" >What do I mean by loosely?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Then_how_to_find_if_your_problem_is_big\" >Then, how to find if your problem is big?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#1_answer_4_questions_on_paper_napkin\" >1) answer 4 questions on paper napkin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#2_find_out_your_startup_ideas_market_size\" >2) find out your startup idea&#8217;s market size<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Step_3_Can_I_execute_the_idea_and_deliver_the_desired_results_successfully\" >Step 3: Can I execute the idea and deliver the desired results successfully?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Why_is_the_circle_of_competency_necessary\" >Why is the circle of competency&nbsp; necessary?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Then_what_is_in_your_circle_of_competency_that_matters_to_your_startup_success\" >Then, what is in your circle of competency that matters to your startup success?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#What_if_you_lack_some_of_skills_experience_or_expertise\" >What if you lack some of skills, experience or expertise?&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Do_I_have_a_passion_for_my_startup_idea\"><\/span><strong>Step 1:Do I have a<em> passion<\/em> for my startup idea?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_passion_necessary\"><\/span>Why is passion necessary?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li> you have probably heard thousands of times\u00a0 \u201cdo what you love and success and money will follow.\u201d\u00a0\u00a0 According to one study, 17% of startups fail because the founder lacked passion.<\/li><li>life as an entrepreneur is extremely difficult, especially in the beginning. You know Airbnb, right? For the first 2 years, with no investors and a few customers, the founders lived on credit cards and sold cereals to keep the company afloat. When you suffer constant awkward, negative energy\u00a0 will consume you. And you, like every entrepreneur, will attempt to give up your startup. Passion, like a lifeboat, will be your positive energy to inspire you, give you courage, and drive you forward to your goal.<\/li><li>since pre-seed investors care about founders more than ideas, passion is one of the criteria they pay attention to.\u00a0\u00a0\u00a0<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Do_you_know_your_passion\"><\/span>Do you <em>know<\/em> your passion?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If so, you can check if you have a passion for the idea and skip the rest of&nbsp; this section.<\/p>\n\n\n\n<p>Otherwise, you probably are still searching. Where have you been searching?<\/p>\n\n\n\n<p><strong>Have you looked at your book collection, magazines and website bookmarks? What subjects have you been spending your time and money on?&nbsp;<\/strong> Make a&nbsp; list and see if your idea is among the subjects.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"169\" src=\"https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/combine-1.png?resize=750%2C169&#038;ssl=1\" alt=\"\" class=\"wp-image-40\" srcset=\"https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/combine-1.png?resize=1024%2C231&amp;ssl=1 1024w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/combine-1.png?resize=300%2C68&amp;ssl=1 300w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/combine-1.png?resize=768%2C173&amp;ssl=1 768w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/combine-1.png?resize=1536%2C346&amp;ssl=1 1536w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/combine-1.png?resize=1568%2C353&amp;ssl=1 1568w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/combine-1.png?w=1634&amp;ssl=1 1634w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n\n\n\n<p>Passion lives deep in your heart. This is why you can\u2019t find it using your head.&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_you_connect_your_passion_to_you_heart\"><\/span>How do you connect your passion to you heart?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Use this self-assessment technique below.&nbsp; In order to achieve the desired results, follow the process precisely.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\"><li>Find a quiet room for yourself<\/li><li>Close your eyes, and ask yourself \u201cWhat would I do if I had all the money, resources, skills, time and energy, and could never fail?\u201d<\/li><li>Let your mind wonder and get lost in your thoughts.<\/li><li>Open your mind and write down on  paper napkin the first 10 things that appear in your mind.<\/li><li>Check if your idea is on the list.<\/li><li>If yes, it means that you have a passion for the idea.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_does_this_exercise_reveal_your_passion\"><\/span>Why does this exercise reveal your passion?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many psychology studies show that as we grow older, we stop following our heart our heart because of fears, self-defeating beliefs and assumptions such as \u201cI must not make a mistake because people will think I am stupid.\u201d We only think about our dream life when we buy a lottery ticket. Like lottery tickets, this exercise sets you free from the real world and connects you to your heart. As a result, you came up with a bucket list. <strong>How many times&nbsp; have you made a choice that went against your heart, and then later regretted it?<\/strong> I can\u2019t tell you how many people reconsidered their career paths after completing this exercise.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Does_the_idea_resolve_a_big_business_problem_from_my_personal_experience\"><\/span><strong>Step 2<\/strong>: <strong>Does the idea resolve a big business problem from my personal experience?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_the_answer_for_this_question_is_necessary\"><\/span>Why is the answer for this question is necessary?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>if your idea doesn\u2019t resolve any problem, it will not be worth pursuing\u00a0 because people will buy your product or service only if they can solve their problems. <strong>Do you remember the Google Glass? <\/strong>It never clearly defined what problems it would solve for\u00a0 its customers. The creator just assumed that people would like to have glasses combining a fashionable style with functions that Google offered. The result: no one wanted them.\u00a0<\/li><li>When you have a personal connection to the problem, you will avoid the number one entrepreneurs\u2019 mistake, which causes 42 % startup failing. It is that they built a product\/service that did not solve their customers problems. You greatly increase your odds of success.<\/li><li>the first thing pre-seed investors look at is\u00a0 the level of\u00a0 founders\u2019\u00a0 unique insights to their problems. When you have a unique insight to the problem, you will likely develop a unique solution, outrunning your competition and avoiding the number three entrepreneurs\u2019 mistake\u2014getting outcompeted. Taking Uber as an example, the unique insight was the inconvenience of the taxi services including taxi availability, cash payments, and unfamiliar routes of drivers. Its solution is an app that connects customers with drivers easily, uses GPS to guide drivers, and processes the credit card payment.\u00a0\u00a0\u00a0<\/li><li> to attract pre-seed and seed investors, your startup idea must exist in a market size of at least $200 million(some may tell you $100 million).<\/li><\/ol>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/problem.jpg?resize=608%2C172&#038;ssl=1\" alt=\"\" class=\"wp-image-42\" width=\"608\" height=\"172\" srcset=\"https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/problem.jpg?resize=1024%2C292&amp;ssl=1 1024w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/problem.jpg?resize=300%2C86&amp;ssl=1 300w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/problem.jpg?resize=768%2C219&amp;ssl=1 768w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/problem.jpg?resize=1536%2C438&amp;ssl=1 1536w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/problem.jpg?zoom=2&amp;resize=608%2C172&amp;ssl=1 1216w, https:\/\/i0.wp.com\/zettasher.com\/blog\/wp-content\/uploads\/2021\/02\/problem.jpg?zoom=3&amp;resize=608%2C172&amp;ssl=1 1824w\" sizes=\"auto, (max-width: 608px) 100vw, 608px\" \/><\/figure>\n\n\n\n<p>A common mistake&nbsp; made by new entrepreneurs is to define your problem loosely.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_I_mean_by_loosely\"><\/span> What do I mean by <em>loosely<\/em>?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A startup founder once told me that his startup was to solve&nbsp; food insecurity issues. But, food insecurity can mean many things, from food availability to food affordability to food safety. So, you have to be more <em>specific<\/em> to details. Remember: the devil is in the details.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>If you define the problem correctly, you almost have the solution.\u201d<\/p><p>\u2014 <a href=\"https:\/\/www.azquotes.com\/quote\/1059253\" target=\"_blank\" rel=\"noreferrer noopener\">Steve Jobs<\/a><\/p><\/blockquote><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Then_how_to_find_if_your_problem_is_big\"><\/span>Then, how to find if your problem is big?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_answer_4_questions_on_paper_napkin\"><\/span>1) answer 4 questions on paper napkin<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Let&#8217;s get your paper napkin and pen, and write answers for the following 4 questions because writing will help you understand your problem more deeply.<\/p>\n\n\n\n<p><strong>Does your startup idea solve any real problem?<\/strong>&nbsp;People will buy your product or service only if it can solve their problems. For example, you go to McDonald&#8217;s when you are either hungry or thirsty.<\/p>\n\n\n\n<p><strong>Is this problem from your personal experience?<\/strong>&nbsp;If not, I would suggest that you take a step back and make sure you understand the problem in depth. <strong>Why? <\/strong>\u201cIf you define the problem correctly, you almost have the solution,\u201d as Steve Job said.<\/p>\n\n\n\n<p><strong>If yes, how urgent is the problem?<\/strong>&nbsp;If your potential customers can live with a nonurgent problem (e.g., a mosquito bite), they would not be willing to pay your product or service, and you would not have a viable business.<\/p>\n\n\n\n<p>Otherwise, an urgent problem,\u00a0<strong>what are switching costs?<\/strong>\u00a0Even though your problem is urgent, it will not guarantee success if the switching costs are high.<\/p>\n\n\n\n<p><strong>Do you still think your idea is good? Yes?<\/strong> Let&#8217;s move on. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_find_out_your_startup_ideas_market_size\"><\/span>2) find out your startup idea&#8217;s market size<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>At this stage, you only need to do a rough calculation of the market size.<\/p>\n\n\n\n<p>If your idea targets a B2C market, you can find&nbsp; how many potential customers exist by sex and age are in the market ( forget about your competitor for now), and then multiply by the estimated &nbsp;service charge.&nbsp; To help you do the calculation,&nbsp; the table below lists the US population by age and sex coming from the US government census data.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-light-gray-background-color has-background\"><tbody><tr><td><strong>Age<\/strong><\/td><td>&nbsp;<strong>Male<\/strong><\/td><td>&nbsp;<strong>Female<\/strong><\/td><\/tr><tr><td>Total<\/td><td>161,657,324<\/td><td>166,582,199<\/td><\/tr><tr><td>.Under 5 years<\/td><td>10,009,207<\/td><td>9,567,476<\/td><\/tr><tr><td>.5 to 9 years<\/td><td>10,322,762<\/td><td>9,873,133<\/td><\/tr><tr><td>.10 to 14 years<\/td><td>10,618,261<\/td><td>10,180,007<\/td><\/tr><tr><td>.15 to 19 years<\/td><td>10,745,607<\/td><td>10,308,963<\/td><\/tr><tr><td>.20 to 24 years<\/td><td>11,064,752<\/td><td>10,568,188<\/td><\/tr><tr><td>.25 to 29 years<\/td><td>12,004,570<\/td><td>11,504,446<\/td><\/tr><tr><td>.30 to 34 years<\/td><td>11,354,610<\/td><td>11,076,695<\/td><\/tr><tr><td>.35 to 39 years<\/td><td>10,884,941<\/td><td>10,852,580<\/td><\/tr><tr><td>.40 to 44 years<\/td><td>9,907,139<\/td><td>10,014,484<\/td><\/tr><tr><td>.45 to 49 years<\/td><td>10,085,355<\/td><td>10,312,396<\/td><\/tr><tr><td>.50 to 54 years<\/td><td>10,086,611<\/td><td>10,390,540<\/td><\/tr><tr><td>.55 to 59 years<\/td><td>10,642,489<\/td><td>11,234,902<\/td><\/tr><tr><td>.60 to 64 years<\/td><td>9,856,730<\/td><td>10,714,416<\/td><\/tr><tr><td>.65 to 69 years<\/td><td>8,199,773<\/td><td>9,255,228<\/td><\/tr><tr><td>.70 to 74 years<\/td><td>6,499,806<\/td><td>7,528,626<\/td><\/tr><tr><td>.75 to 79 years<\/td><td>4,318,499<\/td><td>5,334,166<\/td><\/tr><tr><td>.80 to 84 years<\/td><td>2,679,724<\/td><td>3,637,483<\/td><\/tr><tr><td>.85 years and over<\/td><td>2,376,488<\/td><td>4,228,470<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>For example, you have a product or service that can be used for women between 65 and 69. Assume that only half of the population will use your service and your service charge is $5 per time,<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-subtle-light-gray-background-color has-background\"><tbody><tr><td>Annual service usage frequency<\/td><td>Population<\/td><td>Total potential market size<\/td><td>Fundable idea?<\/td><\/tr><tr><td>1<\/td><td>4,627,614<\/td><td>23 million<\/td><td>No<\/td><\/tr><tr><td>10<\/td><td>4,627,614<\/td><td>230 million<\/td><td>Yes<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>But, if your idea targets a B2B market, you can do a quick Google search using a search phrase like \u201chow many\u201d+ your b2b companies+\u201c in the US\u201d. For example, if your idea is about serving law firm, your search phrase should be \u201chow many law firms in the us?\u201d Your search result will return 1,352,027 as 2019. Thus your annual service fee must be at $200 in order to be fundable.  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_Can_I_execute_the_idea_and_deliver_the_desired_results_successfully\"><\/span><strong>Step 3: Can I execute the idea and deliver the desired results successfully?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You probably know Warren Buffet, the legendary stock investor in the US.&nbsp; He has beaten the S&amp;P 500 index for decades.<strong> What is his secret sauce to succeeding?<\/strong>&nbsp; Circle of competency. Here\u2019s <a href=\"http:\/\/1996 Shareholder Letter:\">Warren Buffett in his own words:<\/a><\/p>\n\n\n\n<figure class=\"wp-block-pullquote is-style-default\"><blockquote><p><em>What an investor needs is the ability to correctly evaluate selected businesses. Note that word \u201cselected\u201d: You don\u2019t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.<\/em>&#8220;<\/p><cite>Warren Buffett<\/cite><\/blockquote><\/figure>\n\n\n\n<p>In other word,  it is an area where your skills, expertise and experience are strong. It is your edge. For every investment, Warren Buffet ensures that he is familiar with the businesses and whose owners focus on their circle of competency to lead the company to success.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_the_circle_of_competency_necessary\"><\/span><strong>Why is the circle of competency&nbsp; necessary?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It protects you from making major mistakes that will destroy your chance for success.<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>starting a business is like entering a war zone. Knowing your circle of competency is a must. As the greatest Chinese army strategist, the author of the Art of War said \u201cIf you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.\u201d<\/li><li>as Sue Grafton said\u201d Ideas are easy. It&#8217;s the execution of ideas that really separates the sheep from the goats.\u201d You must know <em>what<\/em> makes you to execute your idea successfully in a timely manner?<\/li><li>pre-seed investors only invest in startup whose founders focus on the circle of competency to lead the startups success.<\/li><\/ol>\n\n\n\n<p class=\"has-text-color\" style=\"color:#a35400\"><strong><a data-type=\"URL\" data-id=\"http:\/\/zettasher.com\/session.php\" href=\"http:\/\/zettasher.com\/session.php\" target=\"_blank\" rel=\"noreferrer noopener\">Need Help with Your Idea?<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Then_what_is_in_your_circle_of_competency_that_matters_to_your_startup_success\"><\/span>Then, what is in your circle of competency that matters to your startup success?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>&nbsp;imagine that you have an idea of a beautiful house. Now, you need an architect to convert your idea into a blueprint and a general contactor and many subcontractors and workers to build your house based on the blueprint. In order to turn your idea into a product\/service, do you have expertise, experience and tech know how to design your system blueprint and convert your design blueprint into a product\/service that your customer will love and stands out from your competitors?<\/li><li>there is more than simply building a house. You need to buy a lot, get building permits from local government, buy insurance, obtain a construction loan, and so on.&nbsp; <strong>Do you have industry experience and expertise to make your product\/services fits and works in its ecosystem effectively? <\/strong>For example, if most of your customers were using mySQL database, they would not buy your app using Oracle database.&nbsp;<\/li><li>if your idea is within your circle of competency, you will save yourself valuable time and money to avoid reinvent the wheel, and find product market fit faster.&nbsp;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_if_you_lack_some_of_skills_experience_or_expertise\"><\/span>What if you lack some of skills, experience or expertise?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p> One effective way is to find a co-founder or recruit subject matter expert as your advisor.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now, you know the secret to deciding if your idea is good to get in by assessing passion, idea worthiness and circle of competency. You might wonder if it works. Yes, in fact, <em>you<\/em> can find many living proofs:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Amazon founder Jeff Bezos, for example,&nbsp; had many ideas when he started Amazon, and decided to sell books online because he is a book lover. Its market size is huge, and he knew how to build the Amazon platform, and he was nearby the biggest book publisher.<\/li><li>Another entrepreneur,&nbsp; Aaron Patzer,&nbsp; turned his idea into a funded startup within 1 year without a product and sold his company Mint to Intuit 2 years later for $170 million.&nbsp; He showed how fast a good idea can help&nbsp; to reach your goal. <strong>Why did the VC invest in him?<\/strong> His unique insight to the problem of difficulty for people to save, his tech know how in building the product, and his passion for being a successful entrepreneur(He got the VC founding after he had been rejected by many Silicon Valley VC firms).&nbsp;&nbsp;<\/li><\/ol>\n\n\n\n<p class=\"has-text-color\" style=\"color:#a35400\"><strong><a href=\"http:\/\/zettasher.com\/session.php\" data-type=\"URL\" data-id=\"http:\/\/zettasher.com\/session.php\" target=\"_blank\" rel=\"noreferrer noopener\">Need Help with Your Idea?<\/a><\/strong><\/p>\n\n\n\n<p>Coming next week: we continue part 2 of the validation series that will help you validate your idea in depth effectively (Hint: It&#8217;s Not What You Think). Stay tuned!<\/p>\n\n\n\n<p>I\u2019d love to hear your opinions on this in the comments. If you know other preliminary methods to validate a startup idea. Would you please share with us in the comments so we can help more entrepreneurs&nbsp;succeed as the 5%?<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last updated on&nbsp;February 11, 2021&nbsp;by&nbsp;Hong Zhuang Reading Time:10 min Are you a new entrepreneurs whose goal is to launch a tech startup from scratch and get it funded by pre-seed or seed investors? If yes, this blog, the first part of a validation series, will help you do a preliminary validation without diving deep into&hellip; <a class=\"more-link\" href=\"https:\/\/zettasher.com\/blog\/2021\/02\/04\/how-to-decide-if-your-startup-idea-is-good-to-get-in-before-diving-deep-into-validating-it\/\">Continue reading <span class=\"screen-reader-text\">How To Validate A Tech Startup Idea without Coding, Part 1<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_eb_attr":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-33","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"aioseo_notices":[],"featured_image_src":null,"author_info":{"display_name":"hong zhuang","author_link":"https:\/\/zettasher.com\/blog\/author\/hong-zhuang\/"},"jetpack_featured_media_url":"","wps_subtitle":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/posts\/33","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/comments?post=33"}],"version-history":[{"count":61,"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/posts\/33\/revisions"}],"predecessor-version":[{"id":584,"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/posts\/33\/revisions\/584"}],"wp:attachment":[{"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/media?parent=33"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/categories?post=33"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zettasher.com\/blog\/wp-json\/wp\/v2\/tags?post=33"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}