I Have a Great Idea 💡

Time to put your idea to the test

Hello 👋🏼

I always meet people who have “great ideas”, and I usually convince myself that my ideas are great too! But are they really as we think? Let’s start with a short story…

Omar and Pete arrived at a café but the parking space was full. Their class would start in 10 minutes, when Omar protested: “I’m not leaving without my coffee!” At that moment, he also said his famous phrase: “I wish there was a coffee pickup app where the barista delivers to my car!”
Daydreaming in his class, Omar thought: this could be a thing, the next DoorDash! we’d also join the “Dropout” squad, as he and Pete already have a dismissal warning :)

Before you start, here are some questions:

Does your idea solve a problem? 😬

Great startups usually solve a problem. For example, most employees resort to ordering lunch from delivery apps during work hours because these apps solve several problems:

• Not having enough time to go out and return to the office

• Hot temperatures in summer

• Fear of losing their parking spot

Does the problem happen often? 🔁

Your idea might be great, but the problem doesn’t occur frequently enough for users. For example, an A.I. product that predicts a person’s age from their photo spread a few years ago. This product is not expected to be reused as users will likely try it once. Similar ideas may experience rapid growth but soon lose their users or, in entrepreneurship jargon, have low retention.

What about the Blue Ocean? 🌊
While many products we use, like the App Store, are in what’s considered a blue ocean (a new market), I rarely see this in startup projects. Blue oceans are more likely used as an excuse to continue with a weak idea that the entrepreneur is emotionally attached to 😊

What if it doesn’t happen often but it’s big?

“My app helps people buy a house. It doesn’t happen often, but it’s a big deal.”
I agree, but make sure you have a strong business model so that you get a large amount with each purchase.

Does it fit the current market? 🕗

Let’s imagine that 20 years from now, most employees will be working from home. Is the idea of restaurant delivery during work hours effective? I don’t think so, as eating home-cooked food is cheaper and healthier.
What about communication apps like Zoom? it’s “the right time”

Are there enough users? 👥

Sometimes the idea is unique, but the market is small. Although I used to look for cafés that offer decaffeinated coffee, it’s a small market where I live. as specialty cafes are packed after midnight. This may be a problem for many people somewhere else but not in my area.

Does the target audience have high purchasing power? 💰

Some apps have a large user base, but they fail to generate enough revenue due to the low purchasing power of their users.

but I’m not selling, my business model is based on ads.
Economically weak markets have low ad revenues.

Omar’s Idea

Does it solve a problem?
Yes, many specialty coffee shops have limited parking, and time is usually tight on the way to university/work.

Does it fit the market now?
Absolutely, with the spread of specialty coffee shops and the coffee culture in our society.

Does the problem happen often?
Yes, it happens every day for many people, and it might be used several times a day.

Does the target audience have high purchasing power?
Definitely, as specialty coffee prices are high.

Is the idea great? 🤔 Yes, I think so :)

Note
It is very useful for an entrepreneur to solve a problem they personally face, as is the case with Omar, his understanding of the problem’s dimensions and his interest in solving it is great.

Finally
You are not required to abandon your idea if it doesn’t answer these questions, but it is a great opportunity to reshape your idea, by simplifying it or changing the target audience, for example. As is the case in many stages of entrepreneurship, you need to make continuous changes.

All the best with your great idea 🙂