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16%
Research shows that the most successful founders are relatively unconcerned with getting consensus before acting. They tend to focus on solving business problems and vaulting roadblocks.
Do I Have What It Takes To Be A Founder?
Is it crucial to you that everyone is on board with your ideas before you take action?
YES!
YES!
NO.
NO.
You might make a better employee than founder.
This is a good sign:
85 percent
of Inc. 500 CEOs are risk takers—but they’re also good at identifying and mitigating that risk before it burns them down.
Segment of Inc. 500 founders who have a "relational" leadership style, compared with 40 percent of founders who aren't in this fast-growth club.
Are you a
risk taker?
I Have A Unique Product or Business Method. SHould I Get A Patent?
Are you borrowing money
to start your business?
YES!
NO.
Tesla founder Elon Musk said in 2014
that he wouldn't sue anyone who used Tesla's patents because, he wrote at the time, "Tesla, other companies making electric cars, and the world would
all benefit from a common, rapidly
evolving technology platform."
Spend your time and money building a market. You can also file a provisional patent application now
so that you can do a full patent application later.
Investors tend
to favor companies that hold patents and other forms of intellectual property, but getting them can be very
expensive and time-consuming.
YES!
Maybe.
Maybe.
YES!
NO.
Alexa von Tobel, founder of LearnVest, wrote a 75-page business plan that she never showed anyone, but she claims it was invaluable in helping her develop a clear vision. Yours needn’t be that long.
Should I write A Formal Business Plan?
Are you borrowing money
to start your business?
Write the plan.
It can serve as a valuable road map when the fog
of startup war
moves in.
You can get away with not having one, but at the very least, write an informal plan that outlines your ideas for the business, and make a list
of milestones.
And accept that
it will change.
Banks, angels, venture capitalists, and friends and family will want a formal business plan that includes a comprehensive financial overview with projections
of expenses and your marketing strategy.
Is my business idea
any good?
Does your idea solve a problem
or address an issue that has affected you personally?
YES!
YES!
YES!
NO.
NO.
Maybe.
Focusing on solving
a problem is a great way to keep motivated when the going gets tough. And if you’ve had the problem, others probably have as well. Before going further, make sure that assumption is true by testing your ideas with potential customers.
It’ll be a lot easier
to stick with this if it’s a passion project.
There’s plenty
of time to find that blockbuster idea. Pay attention to your daily life and keep a list of everyday products, services, and situations that don’t work the way
you think they should. This is your idea list.
Is your product or service
differentiated by a lower cost or price point, its unique quality, or
its appeal to
a niche?
Do you want to start your company anyway?
You can try, but this will be a lot easier if you wait until you get a better idea.
SARA BLAKELY founded Spanx because she wanted to look better in her favorite pants. Warby Parker’s founders were fed up with overpriced prescription glasses. Airbnb’s founders hosted guests on air mattresses in their apartment to make money when a conference came to their city.
NEXT: Should i write a formal business plan?