Evaluating Your Ideas
Now that you've got a bunch of ideas on the table, it's time to take a step back and see which ones are worth pursuing further. We'll walk you through some practical ways to assess your ideas, looking at factors like feasibility, viability, and how well they meet user needs. Think of it as a reality check for your creative alter ego, ensuring you're investing your time and energy in ideas that could actually make a difference.
📺 Watch the following Y Combinator Start-Up School video on idea evaluation.
Here are some insights from the video.
4 common mistakes with startup ideas:
- Not solving a real problem
- Getting stuck on a "tarpit idea" (common ideas that are much harder than they seem)
- Not evaluating the idea
- Waiting for the perfect idea
Some key questions to ask yourself about your idea:
- Do you have founder/market fit? (Are you the right person/team to be working on this idea?)
- How big is the market?
- How acute is this problem?
- Do you have competition?
- Do you want this? Do you know people who want this?
- Did this only recently become possible or only recently become necessary?
- Are there good proxies for this business?
- Is this an idea you want to work on for years?
- Is this a scalable business?
- Is this a good idea space?
An Idea Evaluation Framework: Desirable, Feasible, Viable
📺 Watch the following video on how to evaluate Tesla through the Desirability, Feasibility, and Viability
Desirability: This aspect focuses on whether there is a real need or desire for the product or service in the market. It's about understanding the customer and their problems, needs, and wants. The key question to ask is, "Do customers want this?" It involves user research, market analysis, and empathy to ensure that the solution addresses a genuine customer need in a way that is meaningful and appealing to them.
Feasibility: This refers to the technical, operational, and logistical ability to actually create and deliver the product or service. It involves assessing the technology required, the skills and resources available within the organization, and any other operational requirements. The key question here is, "Can we build this efficiently with the technology and resources we have?" This component ensures that the solution is practical and sustainable from a production standpoint.
Viability: This dimension assesses whether the business model behind the product or service can generate revenue and sustain itself in the market. It's about the economic logic behind the offering, considering factors like pricing strategy, cost structure, and revenue streams. The key question is, "Can this be a financially sustainable business venture?" Viability ensures that the solution is not only desirable and feasible but also profitable in the long run.
Case Study: HealthTracka
Healthtracka is a health-tech startup based in Lagos, Nigeria, co-founded by Ifeoluwa Dare-Johnson and Victor Amusan in May 2021. The startup is dedicated to decentralizing lab testing across Africa by providing convenient at-home lab testing services and delivering digital results. This innovation is particularly critical in a continent where the healthcare infrastructure is strained, and the doctor-to-patient ratio is alarmingly low, with figures such as 1:5,000 being reported in some regions. Healthtracka's services aim to bridge the gap in healthcare access by making it easier for individuals to undergo medical diagnostics without the need to visit a hospital or laboratory, thereby reducing the risks associated with such visits and the waiting times often involved.
DFV Evaluation
Desirability
Healthtracka addresses a critical gap in the African healthcare system by offering at-home lab testing, which is highly desirable in regions where access to healthcare facilities and diagnostics is limited. The convenience of home-based lab testing is appealing to users who face challenges such as long travel distances to healthcare facilities, high costs, and long waiting times. The company has successfully built trust with its users, overcoming initial skepticism about the reliability of at-home testing services. This trust is crucial for the desirability of the service, as it assures users of the legitimacy and quality of the health tests provided. Furthermore, by investing in health education and promoting the importance of regular health checkups, Healthtracka is increasing the desirability of its services. The startup engages with communities through social media and other channels to enhance healthcare awareness.
Feasibility
Healthtracka partners with reputable lab centers and employs a network of phlebotomists to collect samples from users' homes, making the operational model feasible. The company has established quality checklists to vet these lab centers, ensuring high standards. The startup's digital platform, where users can book lab tests and receive digital results within 48 hours, demonstrates the technical feasibility of Healthtracka's service model, and its efficiency and user-friendliness are critical for managing bookings and delivering results effectively. Healthtracka's plans to expand into more African countries and introduce new product lines, such as APIs for healthcare providers, indicate the feasibility of scaling its business model to meet growing demand across the African continent.
Viability
Healthtracka generates revenue by offering a range of lab tests that users can book through its platform. The service includes the convenience of home sample collection and digital result delivery. The startup's move to introduce subscription plans and its B2B offerings to telehealth providers, hospitals, and pharmacies further diversify its revenue streams, enhancing its viability. With a growing focus on preventive healthcare and the convenience of digital and remote services in Africa, Healthtracka is well-positioned in a market with high growth potential. The demand for healthcare services that can circumvent the challenges of the traditional healthcare system in Africa supports the long-term viability of Healthtracka's business model.