Initial Idea Evaluator

It is a Business Idea Calculator in which you can quickly predict if your business idea is good or not and thus increase the probability of establishing a successful business.

Scores:
  • 0-49: You could do better


  • 50-64: Nice one


  • 65-74: Great idea


  • 75+: One-time opportunity

How long it will take to produce MVP
(minimum viable product)

There are many ways to build initial product/service in which it will validate your "leap of faith."

So how long it will take to build your first MVP?
For example:
Landing page with registration form: This may take one week

Small Functional product: Like Mobile App, Electronic Product ...etc. may take from 1-3 Months to produce a high-quality product (only to validate leap of faith)

Require Constructions and location-based business: constructing laundry shop may need 3-6 months of work before opening



Market / Audience Size

How many users do you expect that they are going to buy/use your product/service (Let's say in the first year of launch)

For example:
Game: Games and Apps have great advantage of being accessible to wide range of users across countries and not limited by location , potential size 100k+ user

Laundry shop: In this example, you are limited by location, potential size is 1000 customer (varies depending on location and other factors)

Programming/Design Service: You maybe accessible across countries, but potential number of clients is small, the potential size could be 30-100, and it varies depending on specifications



User Retention for the Product / Service

How might frequent single user use your product/service during the product/service lifetime?

For example:
Games: During the lifetime of average user he may play the game 15-30+ times

Laundry shop: During the lifetime of average customer he may use your service 10-30 times

Programming/Design service: During the lifetime of average customer he ask for your service ten times




Competition

How many competitors are in the same market you are targeting?

Examples:
War Games VS New Puzzle Game: War Games may have high competition in contrast if you came with new interesting puzzle there would be no competition

Website programming services vs. Systems Integration services: Programming service, in general, have high competition but if you are specialized in particular kind of technologies/projects you will be in a less competitive area (you still have kind of competition with general programming service).
Laundry shop: Competition is based on location , if there are many shops then there are high Competition.



Revenue / Profitability

How much revenue do you think you will generate from each customer ? Revenue does not mean it is net profit still there are expenses we need to take away

Examples:
Games: There are many business models, but potential ARPU is 0.015$-2$.
Programming/Design Service: Potential ARRPU in this case is high because there are no free users and this service require too much time, Average ARRPU 30k$+.
Laundry shop: Potential ARRPU in this case is ok because there are no free users, Average ARRPU 10$.



Cost Per Customer
reproduction cost per customer

How much does it cost to provide the customer the product/service in term of time & money?

Examples:
Games: Almost doesn't cost a thing, they just play and the cost for the server (in the case of an online game) is insignificant per user.
Programming/Design Service: Very Costly, because many resources will be allocated to make app/design for the client and it will take a lot of time.
Laundry shop: Moderate cost, it cost ~ one hour+x$.




Initial Fund
to produce the MVP and test it

How much money do you need to start your business idea and produce/provide the first MVP?


For example:
Programming/Design Service: less than 10000$.
Games: 15k$-30k$.
Laundry shop: 30k$+.




Founder Engagement

When business is up and running , does it require from the founder to be full-time or can founder delegate most of his tasks without affecting the business?

For example:

Games: Little-Middle Engagement.
Programming/Design Service: Extensive Engagement.
Housekeeping Service: No-Little Engagement.



Scalability and Growth

How scalable is your Idea? can it grow fast or it's a slow growing business?

For example:
Games:Scalable and Fast Growing business
Programming/Design Service: Hard to scalable and Moderate Growing business
Housekeeping Service: Not scalable and slow growth



Idea Score:

Worst Case

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Middle Case

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Best Case

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