What is one thing you ALWAYS do before green-lighting a new project or biz idea?
The following answers are provided by the Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.
1. Test Assumptions
There are lots of great ideas, but it’s easier to devise them than to execute them. So before you go off and try to execute new plans, it’s imperative you test some basic assumptions. If you already have customers, speak with them directly about the idea and take their feedback to heart. If you don’t, set up a landing page with an AdWords campaign to test response and prove the market exists.
– Adam Callinan, BottleKeeper
2. Ensure It Aligns With KPIs
Before giving the go-ahead to a project or idea, it’s critical for me that the project aligns with our key performance indicators. If a project doesn’t drive to one of our key metrics, it’s likely not a worthwhile pursuit or use of resources. To have these kinds of checks and balances, it’s important to establish KPIs early on. Once in place, it’s a useful rubric to green-light ideas.
– Doreen Bloch, Poshly Inc.
3. Take a Step Back
The worst thing you can do is pursue a new project or business because it sounds like an exciting opportunity. The problem is that pretty much every new idea seems like an exciting opportunity at first, but only the best of the best maintain that excitement weeks or months down the road. Set it aside and don’t think about it for a while. If you pick it back up and get just as excited, go for it.
– James Simpson, GoldFire Studios
4. Analyze the Pros and Cons
I’m always thinking of new projects or business ideas to help grow our business, so I’ve developed a system to green-light them. First, I write them down and let them marinate for a few days. If the idea still seems legit, I’ll set up a call with my partner, discuss the plan/implementation in detail and write out a pros/cons list. We then analyze the data to make the final decision.
– Anthony Saladino, Kitchen Cabinet Kings
5. Run the Numbers
Before moving forward with any new project, I want to make sure that it’s worth our time and the ROI is there. Numbers don’t lie. Financial projections are an essential tool for determining ROI and helping us make business decisions based on fact, not gut.
– David Ehrenberg, Early Growth Financial Services
6. Ask if It’s What People Want
I see so many entrepreneurs, especially in the startup world, creating new businesses and products without even determining whether there’s a market for them or if people really want their product. Before green-lighting any new idea, I survey people, hold focus groups, run market tests through AdWords and even call people.
– Natalie MacNeil, She Takes on the World
7. Organize the Project First
Before green-lighting a project, you should take the time to organize it. It is prudent to the success of the project or idea to know how long it will take, how it should be executed and who will be responsible before committing to a launch.
– Fabian Kaempfer, Chocomize
8. Define What Success Looks Like
Without a clear definition of what success will look like for a given project, it’s impossible to tell whether it’s on track or even finished. By making a point of defining success before we even get started, we can decide how to measure a project and tell if it’s reaching the necessary goals.
– Thursday Bram, Hyper Modern Consulting
9. Run Some AdWords Tests
Google AdWords is fantastic at validating market interest. I’ll run a few different ads over the course of a few days or a week to test how well they convert and at what rate. That tells me how crowded the space is and how strong the market interest is. Usually I don’t even create a landing page. Instead, I’ll send them to one of my other sites.
– Jared Brown, Hubstaff
10. Talk to Real-Life Customers
Always test your ideas by talking to people in the real world before you invest tremendous amounts of time, energy, and money. Don’t be afraid of anyone stealing your ideas. Get feedback in the wild. Even if it’s simply by sending an email to your customer list asking if it’s something they’d be interested in, that’s a start.
– Cody McKibben, Digital Nomad Academy