How do I know if I'm on the right track with my startup idea?

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Hi Reader, have you been nursing your startup idea for a while? Are you launching and wondering if your idea is good enough?

I may be able to help you here.

Enter IKIGAI.

A Japanese concept meaning "reason for being".

It’s a holistic way of finding purpose and meaning in life, which can be incredibly powerful when applied to entrepreneurship.

The idea is to find a balance between four key elements:

• What You Love (Passion)
• What You Are Good At (Profession)
• What the World Needs (Mission)
• What You Can Be Paid For (Vocation)

I recently realized it's also a GREAT way to help founders assess if they are hitting the right notes with their startup.

A great way to help you evaluate a startup idea that aligns together passion, skills, market demand, and financial viability.

I've built this simple framework for you to assess where you stand today.

A couple of notes.

You don't have to hit EVERY point for you to find your ikigai sweet spot. It will also depends on the nature of your business and your industry... but honestly, the more the better.

Your idea doesn't have to be the most COMPLICATED solution in the world for it to succeed. It just needs to be... good enough.

Let's begin.

Step 1: Do you LOVE your startup?

This is all about your PASSIONS.

What excites you and keeps you motivated.

For entrepreneurs, it means finding an idea that you’re GENUINELY enthusiastic about.

You KNOW you are hitting the right notes here if:

• You are DRIVEN by passion:

Are you EXCITED to build this?

Do find yourself projecting into the future and seeing how this idea can evolve? Great.

• You are solving YOUR own problems:

The BEST ideas often stem from personal PAIN POINTS.

What challenges do you face in your life that you could turn into a solution?

Excellent place to start from. A problem you are familiar with INSIDE OUT is a problem you are PRIMED to solve.

• You CAN'T stop talking about it:

Your excitement will be contagious, attracting cofounders, investors, and customers alike.

• Your idea ALIGNS with your values:

Your startup should reflect your core beliefs.

This alignment will keep you motivated and authentic on your journey.

Or you might find yourself in a state of crisis, torn by a startup that goes against the values that make you who you are.

Step 2: Are you GOOD at what your startup does?

This all about your SKILLS and STRENGTHS.

Choose a startup idea that leverages your expertise.

Your unique skills can set you apart from competitors and help you excel in your chosen field.

You KNOW you are hitting the right notes here if:

• You're leveraging your EXPERIENCE:

Are you familiar with the space you are attempting to disrupt?

Have you worked in that industry before? Yes? then you're already a few steps ahead of the pack.

Your history WILL give you a competitive edge in your chosen space.

• You're tapping into your NETWORK:

Your connections are gold.

Leverage your network for mentorship, partnerships, and funding opportunities.

• You know your MARKET and consumer:

Deep knowledge of your market and potential customers is crucial.

A strong understanding of their needs will generate an EXCELLENT solution accordingly.

• You have CO-FOUNDERS that complement you:

Get yourself co-founders! Be it in the industry you're entering, technology, or strategy and startups.

Find people who FILL your skill gaps.

Step 3: Does the world NEED what your startup offers?

This is all about DEMAND and RELEVANCE.

Your should aim to solve a REAL problem in the market.

It’s about making an impact and providing value to others.

You KNOW you are hitting the right notes here if:

• You offer a NOVEL Approach:

Bring something new to the table.

Innovation can set you apart from the competition.

• You're leveraging NEW technology:

Your solution is coming from a use case of technology that was recently developed.

This means others probably haven't done this yet, and it's a truly new solution to the problem you're tackling.

• You're replicating a SUCCESSFUL model, differently:

Adapt successful models from other industries. Apply proven concepts to new areas and be a trailblazer.

• You're disrupting a BROKEN industry:

Identify industries ripe for disruption.

Outdated and inefficient solutions are golden opportunities for innovation.

Step 4: Are people willing to PAY you for your service?

This is all about the financial VIABILITY.

Can you build a sustainable business model?

It’s CRUCIAL to ensure there’s a market willing to pay for your solution.

You KNOW you are hitting the right notes here if:

• You are 10x what's out there:

Your idea should be exponentially better than what's out there.

Aim to be 10x better. Not 2x, not 3x. 10x.

There's no longer lasting advantage than a truly DISRUPTIVE solution.

• You have ONE source of revenue:

Your startup should have ONE income stream, enough for it to grow.

Don't diversify. Not yet.

Managing multiple income streams as you build is mess, slows you down, and weakens your growth.

If your main income stream isn't enough, your solution is not where it needs to be.

• You market is big (ENOUGH):

Validate that the market is large enough to sustain and grow your business.

A smaller market may be easy to enter but needs to generate sufficient demand.

• People are WILLING to pay you:

Make sure people are willing to open their wallets for your solution.

Test, survey, and validate early on.

• Your focus REMAINS on the customer:

Always keep your customers at the heart of your business.

Their feedback should drive your product development and strategy.

With this, you've hit the IKIGAI bullseye.

A balanced idea where you as a founder can grow.

Where passion, skills, market demand, and financial viability align to create a great space for you to thrive in.

What a sweet spot to be in.

Let me know how it feels,
Majd

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