This list of questions from Unusual Ventures is a great “gut check” to test if you’re ready to turn an idea into something concrete.
Questions to ask yourself
- Are you willing to spend the next 7-10 years of your life on this idea?
- If you run into hard times and it’s not working out (this could be years),
would you be willing to push through?
- Do you have real conviction and passion for the space or do you just want to
start a company?
- Are you willing to compete against 15-20 competitors with the same idea,
and do you think you will win? Why will you win?
- Is your personal network supportive of you starting a company?
- Do you have sufficient savings set aside to sustain you while you fundraise?
Questions to ask your potential co-founder(s)
- What are your strengths and weaknesses? Where do you want to spend most
of your time? How would that change as the company matures?
- How many hours are you willing to work a week? Would you be willing to take
calls at odd hours or are there boundaries we should respect?
- What would be an ideal exit for you? Acquisition or IPO? If acquisition, what
price would you consider a win?
- Should our team be co-located or distributed?
- What culture would you like to build at our company?
- How should we set founder equity?
- What’s more important to you? Making money? Building a product or team?
- Who would your ideal investors be? How much do you want to raise?
- How would we resolve personal conflict between ourselves?
Questions to ask about your product/market
- Are you going after building a new category or a better product in an existing
- What are the large players already if this is an existing category?
- Where will the budget come from if this is a new category?
- Does your solution have enough value to justify a customer to pay the
additional money or move the budget to your solution?
- What is the long-term view of this market? Will this combine with another
category, or do you believe this will become a standalone category?
These questions help clarify your commitment to the tough ride you will signing up for if you go ahead…!
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