One of THE BEST ways to evaluate YOUR idea (apart from CENTS) and the (fourth) best book for fresh, wanna-be entrepreneurs.

[Akaushra]

As the title says, The Personal MBA is a wonderful book. If you feel like "I don't know much/enough about business, this book is for you. The author also has a website, which has FREE CHAPTERS of his book. There are also a few more resources there, like a list of 99 business books. But, without further ado, evaluating ideas.

Disclaimer/Foreword: The following list is my rewriting of an excerpt from Josh Kaufman's phenomenal book, The Personal MBA. Mr. Kaufman has in no way paid me or asked me anything to recommend this book and share this list with you. I have done it of my own accord because this book is valuable to me.

Ten Ways to Evaluate Your Idea: Rate each of the following attributes/factors from 0-10, with 0 being horrid and 10 being (

View: https://youtu.be/sAXZbfLzJUg
).

1. Urgency: How bad do people "have to get this, NOW!"?
2. Market Size: Are people purchasing the same or similar products?
3. Pricing Potential: How good is the highest price someone would pay for your solution to their problem?
4. Cost of Customer Acquisition: How expensive will it be to acquire a customer?
5. Cost of Value Delivery: How much will it cost to create and deliver the value offered, in both money and effort?
6. Uniqueness of Offer: How unique/better is your solution than your competitors AND how easy is it to copy?
7. Speed to Market: How soon can you get out there and start making money?
8. Up-Front Investment: How much will you have to invest before you can start making money?
9. Upsell Potential: Are there related accessories to your product that you could sell? (like phone chargers and cases)
10. Evergreen Potential: How much work will you have to put into AFTER your business is set up, ie is it tied to your time?

Add up your values, and let's take a look.

0-50: dump the idea.
0-75: bill-payer
75-100:

View: https://youtu.be/sAXZbfLzJUg



Yes, it's a lot like CENTS, (UMSPPCCACVDUOSMUFIUPEP doesn't roll off the tongue, does it?) I see the same concepts. But this list has twice the questions, so I feel it could be accurate. Enjoy!

 

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[farahead]

My idea is to build app block with very unique value skews (more accountability and comfortability)

1. URGENCY = 9 (phone addiction is rising so i figured people would appreciate app block that works.)
2. MARKET SIZE = 9 (alot of people struggle w addiction)
3. PRICING = 8 (premium version with more features, also accountability payments)
4. CUSTOMER ACQUISITION = 7
5. COST OF DELIVERY = 10 (almost no costs at all)
6. UNIQUENESS AND DIFFICULTY OF COPYING = 7 (uniqueness = 10/10 but i can imagine it being not that difficult to code)
7. SPEED OF MARKET = 9 (already working on beta version. i think 5 years max)
8. UPFRONT INVESTMENT = 10 (computer)
9. UPSELL POTENTIAL = 10 (premium + billing if u spend too much time on phone)
10. EVERGREEN = 8 ( bug fixing, changing the code with new android / apple software updates)

total = 86 lets goo

75-100:

View: https://youtu.be/sAXZbfLzJUg

 

[Subsonic]

My idea is to build app block with very unique value skews (more accountability and comfortability)

1. URGENCY = 9 (phone addiction is rising so i figured people would appreciate app block that works.)
2. MARKET SIZE = 9 (alot of people struggle w addiction)
3. PRICING = 8 (premium version with more features, also accountability payments)
4. CUSTOMER ACQUISITION = 7
5. COST OF DELIVERY = 10 (almost no costs at all)
6. UNIQUENESS AND DIFFICULTY OF COPYING = 7 (uniqueness = 10/10 but i can imagine it being not that difficult to code)
7. SPEED OF MARKET = 9 (already working on beta version. i think 5 years max)
8. UPFRONT INVESTMENT = 10 (computer)
9. UPSELL POTENTIAL = 10 (premium + billing if u spend too much time on phone)
10. EVERGREEN = 8 ( bug fixing, changing the code with new android / apple software updates)

total = 86 lets goo

I like your enthusiasm but your really overvaluing your idea.
If it somehow magically fixes all problems PEOPLE HAVE WITH THEIR PHONES and not just problems they have with other app blocks then the first one is fine but otherwise its like a 3.
For the rating here I am coming from the perspective that your making a better app blocker and not a magic tool that solves all your customers addiction problems. If you had that, then you can obviously change the rating.


2. 6 (not as many people use app blocks as you think, being in Hamza/self improvement circles can really twist your perception of reality)

3. 2 (you cant take more than 19.99 a month realistically since most your customers are broke teens or looser tweens)

4.agreed, provided you have a good offer

5. agreed

6. ? (I have no idea what your actually doing but copying a programm you coded yourself should be a matter of a few months/weeks to a well paid professional dev team)

7. if you say it takes 5 years to bring the software to the market then this is a big fat 0/10. Otherwise its still a low score. A 9/10 would be something like a window cleaning company or a course where you can make money 1 to 4 WEEKS after having the idea to do it.

8. 2 (value your time at the salary of a coder and then also just value it as time invested. Also consider opportunity cost since you cant do something else during that time)

9. 3 (A 20€/month sub should already be the premium. Upsells could perhaps be courses and seminars but those are meh at best)

10. 5 (If people start education themselves on addiction and phones this could loose many customers. Unless of course you invented some genius things)


Overall, I would be careful with this idea. You seems to be valuing it with a strong bias.



You are a level one entrepreneur and what your going after is a top level challenge with two factors of risk.

-> idea risk

-> execution risk

Exectution risk is that you just mess up and dont do a good job, which is pretty likely already, given your experience. Idea risk is that you bring a sick product with top exectution to the market and they just dont want it. Both make it success unlikely ON THEIR OWN. Together it makes it REALLY REALLY unlikely that you will come out of this with a good outcome.

If you really believe in this and want to take on this huge challenge then by all means, go for it. However I would very much advise you to start by doing something you know works, but better. Running a Gym chain works, which eliminates one risk factor. Now you only need to focus on your execution, which is under your control.

A last point. Going after such challenges wont bring your forward as a entrepreneur because your not taking real action. "Wait what, I am doing what I need to do". Yes but No.

Real action is putting a offer in front of the market. Untill then its not real action. I know this first hand because being in the trenches of getting money and paying money teaches you so much more than coding on a super compicated app that will take years to complete.

 

[REV5028]

I like your enthusiasm but your really overvaluing your idea.
If it somehow magically fixes all problems PEOPLE HAVE WITH THEIR PHONES and not just problems they have with other app blocks then the first one is fine but otherwise its like a 3.
For the rating here I am coming from the perspective that your making a better app blocker and not a magic tool that solves all your customers addiction problems. If you had that, then you can obviously change the rating.


2. 6 (not as many people use app blocks as you think, being in Hamza/self improvement circles can really twist your perception of reality)

3. 2 (you cant take more than 19.99 a month realistically since most your customers are broke teens or looser tweens)

4.agreed, provided you have a good offer

5. agreed

6. ? (I have no idea what your actually doing but copying a programm you coded yourself should be a matter of a few months/weeks to a well paid professional dev team)

7. if you say it takes 5 years to bring the software to the market then this is a big fat 0/10. Otherwise its still a low score. A 9/10 would be something like a window cleaning company or a course where you can make money 1 to 4 WEEKS after having the idea to do it.

8. 2 (value your time at the salary of a coder and then also just value it as time invested. Also consider opportunity cost since you cant do something else during that time)

9. 3 (A 20€/month sub should already be the premium. Upsells could perhaps be courses and seminars but those are meh at best)

10. 5 (If people start education themselves on addiction and phones this could loose many customers. Unless of course you invented some genius things)


Overall, I would be careful with this idea. You seems to be valuing it with a strong bias.



You are a level one entrepreneur and what your going after is a top level challenge with two factors of risk.

-> idea risk

-> execution risk

Exectution risk is that you just mess up and dont do a good job, which is pretty likely already, given your experience. Idea risk is that you bring a sick product with top exectution to the market and they just dont want it. Both make it success unlikely ON THEIR OWN. Together it makes it REALLY REALLY unlikely that you will come out of this with a good outcome.

If you really believe in this and want to take on this huge challenge then by all means, go for it. However I would very much advise you to start by doing something you know works, but better. Running a Gym chain works, which eliminates one risk factor. Now you only need to focus on your execution, which is under your control.

A last point. Going after such challenges wont bring your forward as a entrepreneur because your not taking real action. "Wait what, I am doing what I need to do". Yes but No.

Real action is putting a offer in front of the market. Untill then its not real action. I know this first hand because being in the trenches of getting money and paying money teaches you so much more than coding on a super compicated app that will take years to complete.

While there is often great value in constructive criticism, I'd just like to remind you both (@Subsonic & @farahead ) that you're quite young in the grand scheme of things. Don't be afraid to take some risks and fail in the learning process. Again, constructive criticism and developing critical thinking skills with others is wonderful for growth, but at the same time, be careful not to get discouraged (or discourage others) into never taking action because the idea isn't fully realistic or fully baked. Especially at such young ages! Get out there and try and learn and grow!

 

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[farahead]

Thank you for your objective feedback, definitely something i needed to hear.
It got me thinking, you made some fair points, helped me notice flaws in the idea. Im not gonna just right away forget the idea but im going to analyse this more and look through my other ideas.

I like your enthusiasm but your really overvaluing your idea.
If it somehow magically fixes all problems PEOPLE HAVE WITH THEIR PHONES and not just problems they have with other app blocks then the first one is fine but otherwise its like a 3.
For the rating here I am coming from the perspective that your making a better app blocker and not a magic tool that solves all your customers addiction problems. If you had that, then you can obviously change the rating.


2. 6 (not as many people use app blocks as you think, being in Hamza/self improvement circles can really twist your perception of reality)

3. 2 (you cant take more than 19.99 a month realistically since most your customers are broke teens or looser tweens)

4.agreed, provided you have a good offer

5. agreed

I have a question regarding this :

6. ? (I have no idea what your actually doing but copying a programm you coded yourself should be a matter of a few months/weeks to a well paid professional dev team)

Fair point, but everything can be copied, maybe except personal brand like Justin Bieber etc. What would be your example of 10 / 10 in this area ?

7. if you say it takes 5 years to bring the software to the market then this is a big fat 0/10. Otherwise its still a low score. A 9/10 would be something like a window cleaning company or a course where you can make money 1 to 4 WEEKS after having the idea to do it.

8. 2 (value your time at the salary of a coder and then also just value it as time invested. Also consider opportunity cost since you cant do something else during that time)

Woahh this is good i never thought about it this way, so 10 / 10 would be window cleaning service where u just buy basic equipment.

9. 3 (A 20€/month sub should already be the premium. Upsells could perhaps be courses and seminars but those are meh at best)

Yes but its a subscription based = if average stay time was 3 months and it costs me 20 $ to get 1 customer it would be profitable, 10 / 10 would be some b2b software where u can charge 100x that for example?

Overall, I would be careful with this idea. You seems to be valuing it with a strong bias.



You are a level one entrepreneur and what your going after is a top level challenge with two factors of risk.

-> idea risk

-> execution risk

Exectution risk is that you just mess up and dont do a good job, which is pretty likely already, given your experience. Idea risk is that you bring a sick product with top exectution to the market and they just dont want it. Both make it success unlikely ON THEIR OWN. Together it makes it REALLY REALLY unlikely that you will come out of this with a good outcome.

If you really believe in this and want to take on this huge challenge then by all means, go for it. However I would very much advise you to start by doing something you know works, but better. Running a Gym chain works, which eliminates one risk factor. Now you only need to focus on your execution, which is under your control.

A last point. Going after such challenges wont bring your forward as a entrepreneur because your not taking real action. "Wait what, I am doing what I need to do". Yes but No.

Real action is putting a offer in front of the market. Untill then its not real action. I know this first hand because being in the trenches of getting money and paying money teaches you so much more than coding on a super compicated app that will take years to complete, also i think @farahead is the coolest guy on this forum (not edited by farahead in the reply)

Thank you @Subsonic

 

[Subsonic]

Thank you for your objective feedback, definitely something i needed to hear.
It got me thinking, you made some fair points, helped me notice flaws in the idea. Im not gonna just right away forget the idea but im going to analyse this more and look through my other ideas.



I have a question regarding this :

Fair point, but everything can be copied, maybe except personal brand like Justin Bieber etc. What would be your example of 10 / 10 in this area ?






Woahh this is good i never thought about it this way, so 10 / 10 would be window cleaning service where u just buy basic equipment.



Yes but its a subscription based = if average stay time was 3 months and it costs me 20 $ to get 1 customer it would be profitable, 10 / 10 would be some b2b software where u can charge 100x that for example?





Thank you @Subsonic

10/10 in hard to copy would be something that's uniquely defensible via patent or revolutionary technology.
(Flying car, cure to cancer pill or maybe a strong personal brand like you said)

Also thanks for taking the time to respond