Building a Web 2.0 startup: Part 2 – analysis of the idea

Previous posts:

In this second post about the startup of a web application we will discuss how to analyze our first idea.

In the previous post we have discussed about possible competitors and we have understood how our idea can produce business.

At this point, before moving to the analysis phase, we must answer three questions:

  • What is the goal of our project? I mean, what we’re going to carry out?
  • Why our project is valuable?
  • What are the project’s success criteria?

Answering these questions is crucial in the analysis phase of our idea.
If even one of these questions will not get a valid answer, it means that our idea will be to reconsider or to totally discard.

The first question is necessary to closely focus project goals and needed to better understand what we want to do and how it will be implemented.
At first we will probably don’t have a clear idea of all projects features, however, the important thing is to focus on key issues, milestones, to be achieved.

The second question is linked to the question of previous post, “Good idea vs Good Business Idea” but it is essential to understand why an end user will use our application.
We must get a user’s perspective to understand whether our product will actually have a glimmer of success, or will simply forgot.
So it is better to ask who will use our product and how much; these two factors will be key points to calculate the business value of our application.

The third question requires to set up goals: decide what are the criteria for a successful implementation is crucial to understanding how much to invest on the application after the releasing date.
Success criteria can be for example X number of people using the application on a regular basis after an Y time period; to reach X euros for a service fee; the interest aroused by the media in general.

Once you have answered these three questions, we will be ready to go on with planning and analysis, the subject of our future articles.