In the last article, we got through the different methodologies to manage Equity Split, but how to validate an idea? Validating the idea generated is the second most important step after its generation. Today we’re going to explain the method to validate an idea according to Jake Hurwitz.
But before here what has been covered in the last articles :
- The Startup Studios advent in Italy
- History of Startup Studios Model: a 30-years journey
- Types of Startup Studios
- What’s the difference between Accelerators, Incubators, and Startup Studios?
- Startup Studio approach to market
- The Startup Studio Benefits
- How startups are crafted by a Studio
Well, now we’re ready to move to the next one!
Validating an idea: Hurwitz method
In the last chapter, we covered the main steps to be followed by a Studio to create a startup according to Tobias Gutmann’s research. Now let’s prepare the stage for Jake Hurwitz.
Jake Hurwitz has been co-founder at GSSN and current Founder at The Gallery. For Jake, the process of idea validation lasts from 3 to 5 days – not more – and some crucial steps that have to be followed:
- Prepare a checklist
The first thing to do is research the pros and cons of each idea to identify strengths and weaknesses. If your idea gets more positive than negative rates, it’s the right one, otherwise… Well, throw it away and focus on the next one!
- Define the target audience
The target audience has to be clear, here some questions to answer when defining your target audience.
- Who is your target customer?
- Can you “speak” their language?
- What is the size of the market, is it booming?
- Are there legal barriers or regulations within this market?
- Are there already any other solutions to the problem identified?
- What is the estimated lifetime value of this customer?
- How much does your customer care about the quality of the product?
- How much for the price?
- Analyze the product you want to offer
Once you have examined your target, you must analyze the product in. When you get to this step it might be useful to ask yourself the following questions:
- How much are you going to spend on the customer acquisition cost?
- How much and how often will they pay
- Do you need to build a new technology from scratch, or use an already existing one?
- How will the MVP be, how much will it cost?
- Where is your revenue going to come from?
- What is the opportunity cost of building this?
- Why is now the right time to develop your product?
- Has anyone else tried to solve this problem before? What happened?
- Who are your current competitors?
- How much capital do you need to get into the market?
- What is your unfair advantage?
- What makes your product different from others?
- Is there any barrier to entry?
- Analyze the team you need to launch the idea
This is the hardest analysis to perform: evaluating other people is easy, but evaluating yourself is tremendously difficult.
- Do you have the right team to build this product?
- Do you have the skills you need? If not, which ones will you require?
- Is it necessary to hire additional people to move this project forward?
Let's get practical!
Having answered this set of questions and your idea/product has received a positive evaluation, you have to move on to the next step, shaping your idea into something that can be measured.
Three elements have to be produced: Logo, Mockup, and Landing.
The Logos design should last no more than 1 hour. Don’t overthink, one hour is enough time to produce a logo for the MVP, it has to be simple and intuitive. You can improve your logo later when the idea is validated and you have more funds. Dribbble is a good place to get inspiration.
For the Mockup, you will need more than one hour. Still, the same rules are reasonable: avoid overthinking, be clear, make sure that your graphics reflect your company/product.
For the mockup it may be necessary to ask for professional help. If you need the help of an expert figure you can check on Fiverr.
Anyway, creating a mockup is a 1-day process, and also the creation of a landing page should not take no more than 1 day. The best and easiest tool to start is definitely Webflow, it offers a no-code experience to create the foundations of your website.
Here’s a recap of what we covered in today’s article:
- Write your landing page text on Google Docs and remember a fundamental rule: KISS!: Keep It Simple and Stupid!
- Write a catchy CTA to insert on the homepage
- Use Hubspot or Webflow to create forms to get contacts of potential users (email, phone numbers, etc..).
- Buy the domain for your website. Webflow offers monthly subscriptions for a few dollars in exchange for functional management tools.
- Check the website usability via mobile, it is essential since most of the traffic comes from mobile devices.
- Don’t “think too much”. Done is better than perfect.
And now that you know how to validate an idea according to Jake Hurwitz?
What will be the next article?
We will discover together the method by Brent Freeman for idea validation. Stay tuned.
Our Dojo is looking for great Sensei: inspired mentors willing to support our founder/samurai in their economic and, why not, spiritual journey. In Japanese, Sensei means “born before” and is defined as a person with a wide experience and skills. He/she wants to share it with others to help them become stronger.
Do you feel like this?