How do you know if an idea is worthy of starting a startup?

It depends on what your own goals are. E.g. if your goal is to ‘solve a problem’ or ‘help someone do something’, then you evaluate it on those parameters.

However, if your goal is to build a successful, profitable startup, then you have to evaluate if the concept has a good business case around it. Start with the value proposition and evaluate if that is meaningful to a certain set of people. Assess how much they are willing to pay for it. Then check if the costs of delivering that value proposition is lower than the cost that the customer is willing to pay. And if the answers are positive, then assess if there are enough number of customers that will make this a meaningful sized business for you, and for your investors if you are thinking of raising funding from investors.
Most importantly, despite a yes on all the above, evaluate if this is something that you really, really are excited about doing. If not, no matter how strong the business case, it is just not worth it.
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Author: Prajakt Raut

Prajakt Raut is the founder of Applyifi.com, and author of the book for startups - ‘Starting Up & Fund Raising’ Prajakt personal goal in life is to encourage and assist a 100,000 people to become entrepreneurs. _____________ Prajakt is the founder of Applyifi - an online platform that provides startups a 36-point scorecard and assessment report on the venture's investment readiness [www.applyifi.com], and helps them improve their odds of getting funded. Prajakt is also the founding partner of The Growth Labs, a platform where growth-stage companies get sharp, incisive advice from senior professionals and experienced entrepreneurs. [www.thegrowthlabs.in] Before starting Applyifi, Prajakt was the head of operations at IAN, founding member of a leading incubator, and the Asia-Director for TiE (2004 - 2007). Previously Prajakt had co-founded Orange Cross, a healthcare services company, and was part of the founding team member of Idealake Technologies. While in college Prajakt had founded a printing business and has spent over 10 years working in leading advertising agencies. Prajakt’s book, ‘Starting Up & Fund Raising’, helps startups understand an investor’s perspective, and helps them improve their odds of getting funded. The book also helps entrepreneurs understand the building blocks of a business.

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