Have you ever had an idea that you thought could be the next big thing?

If you’re like many entrepreneurs, you’ve probably wondered if your idea has what it takes to succeed. After spending 25 years in the startup world, I’ve learned key lessons that can help you quickly assess whether your business idea is viable. This 70-Minute Startup guide will walk you through a proven, step-by-step process to validate your idea before you invest too much time or money.

Ready to get started?

Let’s dive in!

 

What You’ll Need to Get Started

Before jumping into the 7 steps, make sure you have these essentials:

• 70 Minutes of Focused Time
• Your idea related to a Passion or Expertise you’re already familiar with
• 3 Non-Family, Non-Friend Acquaintances to consult
• Internet Access
• A Credit or Debit Card.
• A Cell Phone.
• An Email Address.

These are the tools you need to move fast and start validating your idea.

 

7 Quick Steps to Validate Your Startup Idea

1. Identify the Problem (10 Minutes)

The first step is to clarify the problem your product or service will solve. Think about your core competency or passion, and then define your ideal customer.

Key Actions:

• Write down your idea and the problem it solves.
• Research competitors in your market and analyze the industry’s market cap.
• Important Question: Is the market growing, flat, or shrinking?

If you find competition, don’t worry. Focus on identifying a niche that you can dominate. Make sure there’s enough demand to sustain a profitable business.

2. Competitor Research (10 Minutes)

Now that you’ve identified your niche, it’s time to dig into competitor research.

Key Actions:

• Review competing products or services.
• Sort reviews from 1-star to 5-star, and look for common complaints.
• Identify Gaps in the competition: How can you offer a better solution?

Keep this feedback handy, as it will help you refine your offering.

3. Create Your Elevator Pitch (10 Minutes)

An effective elevator pitch will spark interest in your product. You have just 30 seconds to hook potential customers or investors, so make it count.

Key Actions:

• Use templates to craft a short pitch: What problem does your product solve? Why is it better than the competition?
• Bonus Tip: Focus on a clear call-to-action, making it easy for prospects to take the next step.

4. Cold Calling (10 Minutes)

Test your idea’s viability by reaching out to people outside your immediate circle—friends and family aren’t ideal for objective feedback.

Key Actions:

• Call three acquaintances and pitch your idea.
• Ask them: Would you buy this for $X? Why or why not?
• Take note of their feedback to refine your concept.

If at least two out of three people express interest, proceed to the next step. If not, revisit your idea and address concerns before proceeding.

5. Cost Analysis (10 Minutes)

Now, let’s get into the numbers. It’s time to calculate the cost to deliver your product or service. Understanding your cost structure is essential before moving forward.

Key Actions:

• For products, consider manufacturing, lead time, and shipping.
• For services, estimate employee costs, time, and operational expenses.

Make sure your price point can cover these costs while still generating a reasonable profit.

6. Calculate Profit Margin & Viability (10 Minutes)

At this point, you should have enough data to calculate the profit margin for your product or service.

Key Actions:

• Use this formula:
  Expected Revenue – Expected Cost = Gross Profit
  Then, calculate:
  (Gross Profit / Revenue) x 100 = Profit Margin
• For a new product, aim for a margin between 50-70%.
• For a new service, aim for a margin between 10-20%.

A solid margin indicates that your idea is viable. If your numbers look good, you’re on the right track.

7. Set the Ball Rolling (10 Minutes)

Now it’s time to create a clear action plan and commit to a timeline for your next steps.

Key Actions:

• Determine your budget for getting started (do you need capital or can you work with sweat equity?).
• Set a timeline with clear milestones.

Build Your 7 Follow-Up Steps to Launch Checklist

Within the next 7 days, take these follow-up actions to move your startup forward:

1. Research the top 5 online communities where your ideal customer hangs out.
2. Follow up with your first 10 leads—write down their contact info.
3. Request Funding Commitments: Reach out to 5 people for funding.
4. Draft Your Marketing Plan.
5. Discuss tasks outside your expertise with freelancers or a competent agency.
6. Set a date that you will have a working Prototype your product or service.
7. Commit to X hours minimum per week dedicated to moving this project forward.

 

Conclusion: Focus on Validation, Not Perfection

Notice how we didn’t spend the entire 70 minutes on choosing a brand name or logo design? These aspects matter, but they’re not critical for validating your idea. The goal is to quickly determine whether your product has market potential—the rest can come later.

By following these 7 steps, you’ll quickly identify whether your idea is worth pursuing or if you need to go back to the drawing board.

 

Next Steps: Free Mock Pitch Invitation

If you’ve found this post helpful, we have an exciting offer for you:

Book a Free Mock Pitch

Pitch us your startup idea and get personalized feedback. If your proposal is too similar to a product or service we’re already working on, we’ll provide helpful resources to guide you in the right direction instead.

For most proposals, we’ll provide:

• A clear overview of the market landscape
• At least 3 actionable steps to help you refine your idea

If you need more support, we also offer consulting services on a retainer basis to help you get your business off the ground.

You’ve got this! We believe in your potential.

 

— Joseph, Founder, Atomic Avatar

 

Why You Should Act Now

• 75% of startups fail due to lack of market need (source: CB Insights).
• By validating your idea in just 70 minutes, you can significantly increase your chances of success by ensuring that your product fits market demand before launching.