You’re here because you’ve identified a problem and thought of an idea to solve it. That’s great – it’s exactly where Meta and Microsoft started. However, it’s also how Pets.com and Fast.co once began. So how do you know if your idea is a good one? 

The first stage is validating a startup idea; you need to find out if it has the potential to grow from a spark of inspiration into a lasting business. 

Writing down the problem, ideally in one simple and very specific sentence, is a good place to start. Use this to develop a simple profile of your target customer – their demographic location, industry, etc. – and then come up with a list of 20-50 people or companies who match this criteria. 

Once you have those names in hand, it’s time to start knocking on their doors – digitally, at least. Reach out to them, employing a few simple caveats: be short, and get straight to the point; include a specific day and time you’re hoping to talk; ask who you should talk to, and let them know you’re just seeking some direction, hoping to learn from their expertise. Everyone’s busy, of course, so bear in mind you might have to contact a lot of people, just to speak to a few. 

When you get to talk to someone on the phone or over a coffee, use the time wisely. Ask them what their top challenges are, and check if the problem you’re trying to solve is one of them. Is it a big worry for them in their business? Is it something the decision maker would pay to solve? If so, how much? Give them a specific range, find out if they have existing vendors, and check if they’re locked into long contracts. 

All this information should equip you for a deep dive into the problem itself, which is where Michael Seibel, MD of Y Combinator advises entrepreneurs to begin validating business ideas. “Starting with ideas is tricky because immediately people want to grade your idea,” he says. The Validator Problem Statement Canvas will help you to outline the context, customers, root cause, emotional impact, alternatives and alternative shortcomings. It will help you get to the nub of the problem, so you can better define the target market and communicate the solution. 

Don’t forget to focus on one important, but easily forgotten element: you. The problem should be topical, the idea should be insightful, but above all the founder should be passionate. As Steve  Jobs said about the hard graft of entrepreneurship: “You have to have a lot of passion for what you’re doing…[if] you’re not having fun doing it, you don’t really love it, you’re going to give up.” The idea should be a good fit with your expertise, or at least that of a partner in the potential business. Almost all successful startups grow out of the founders’ own experiences, so give yourself time for deep thought and deep work on the problem and your own role in the potential solution. 

Once you’ve done that, it’s time to start doing some homework to further validate your business idea.