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Desirability blog

Startup desirability, a close look on what makes a startup idea good?

Launching a startup often begins with a fundamental question: “Is my startup idea good?” To assess whether your startup idea is good, it’s important to explore three critical factors: desirability, feasibility, and viability. In this blog, we’ll focus specifically on startup desirability, breaking down its significance and providing practical steps to evaluate if your idea will resonate with your target market.

What is startup desirability?

Startup desirability definition

Startup desirability evaluates how appealing your product or service is by assessing whether it effectively addresses important customer needs and pain points. It focuses on creating a solution that genuinely helps customers with critical tasks and provides value that they find meaningful. High desirability means your offering aligns well with what customers truly want and need, increasing its potential for success in the market.

How to discover if customers really want your solution?

Evaluating the desirability of your startup idea involves more than just conceptualizing a solution; it’s about ensuring that your solution effectively addresses a significant problem and resonates with your target audience. We prefer an iterative approach which start with the customers need and switches from there to the solution. Here’s an example of what you can do.

Step 1: Identify the right problem to solve

Startup desirability check - problem

Start by pinpointing the specific problem or pain point you aim to address. The following things can help you:

  • Conduct problem interviews: Engage with potential customers to uncover their key challenges and needs. This step is crucial for understanding what problems are most critical to your target audience.
  • Observe customers: Discover how they act right now.
  • Perform data analysis: And get data-driven insights on potential customer problems.

Step 2: Develop and validate your solution

Once you’ve identified a pressing problem, focus on creating a solution that meets these needs. The following things can help you to determine startup desirability ”on paper”.

  • Conduct solution interviews: Present your proposed solution to potential customers to gather their feedback. Make sure your solution’s attributes align with what they find important and stand out from existing options in the market.
  • Execute preference testing: Gather and analyze customer feedback to determine their preferred features and attributes for your product.
  • Focus groups: Discuss your product concept with a group to gauge reactions and preferences.

Step 3: Test with an MVP

Now that the desirability of the concept has been demonstrated on paper, it is time to discover whether it can actually deliver the proposed value. Create a Minimum Viable Product (MVP) that includes the essential features needed to address the identified problem. Release the MVP to a group of users to evaluate its appeal and functionality in real-world conditions.

There are countless MVP forms that you can use to discover whether your product or service is valuable to users. Be creative and try to test things as small and quickly as possible and iterate from there.

Netsolutions create a great MVP-guide. Read it for more inspiration.

Step 4: Iterate based on data

Collect feedback from MVP users and use it to refine and enhance your product. Continuously iterate based on customer input to improve the fit between your solution and their needs.

Product-market fit: the ultimate indicator of startup desirability

It’s important to recognize the difference between value creation on paper and actual value in the market. Product-market fit occurs when your product effectively meets the needs of a specific market segment, leading to strong customer demand and satisfaction.

Indicators of product-market fit

Here are some concrete metrics to assess product-market fit:

  1. Net Promoter Score (NPS): Measure customer satisfaction and likelihood to recommend your product. A high NPS indicates strong product desirability.
  2. Sean Ellis’ Must-Have Score: Assess how many users consider your product a “must-have.” A score above 40% suggests high desirability.
  3. Retention rates: Track how many users continue to use your product over time. High retention rates indicate that your product effectively meets their needs.
  4. Willingness to refer: Evaluate how many users are willing to refer your product to others. High referral rates signal strong market appeal and customer satisfaction.
  5. Pre-orders and sign-ups: Monitor the number of pre-orders or sign-ups for early access. Significant numbers suggest strong market demand.

In the initial phase of a startup, hard metrics like NPS or retention rates aren’t available. Instead, focus on “soft commitments” to gauge interest:

  1. Expressed interest: Look for enthusiasm through sign-ups or early prototype engagement.
  2. Early feedback: Collect qualitative insights from conversations and surveys.
  3. Pre-commitments: Track informal commitments like beta test agreements or pre-orders.
  4. Content engagement: Measure interactions with related content, such as blog posts or social media.
  5. Interest in involvement: Watch for willingness to participate in focus groups or provide referrals.

Frequent pitfalls in evaluating startup desirability

Here are some common mistakes startups make when evaluating desirability:

Startup desirability mistake 1: Insufficient interaction with customers

Pitfall desirability

Not engaging enough with customers and users can lead to an incomplete understanding of their needs. Actively seek their input and ensure you’re addressing their core issues.

Startup desirability mistake 2: Ignoring customer feedback

Failing to listen to potential users or undervaluing their input can lead to missed insights. It’s essential to understand their needs and preferences, even if you believe your idea is strong.

Startup desirability mistake 3: Overestimating market demand

Startups often overestimate how much demand exists for their product. Avoid assumptions without solid data; ensure your market research accurately reflects real interest.

Startup desirability mistake 4: Relying on unverified data

Using outdated or unreliable data can skew your findings. Base your market research on current and credible sources.

Startup desirability mistake 5: Focusing solely on competitors

Desirability mistake

While competitor analysis is important, don’t get fixated solely on what others are doing. Ensure your product offers unique value and addresses real market needs.

Startup desirability mistake 6: Neglecting market segmentation

Understand that your target market isn’t a monolith. Pay attention to different segments and tailor your approach to their specific needs.

Desirability, Feasibility, and Viability: A complete evaluation framework

When evaluating your startup idea, consider not just desirability but also feasibility and viability:

  • Feasibility: Can you realistically develop and deliver your product with the resources available?
  • Viability: Will your business model be profitable in the long run?

Together, these three aspects—desirability, feasibility, and viability—provide a comprehensive framework for assessing your startup idea’s potential.

Ready to create better startup concepts?

I hope this article on startup desirability inspired you. Do you want to learn how to create better businessconcept? Read our other blogs and our book Business Model Hacking.

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