Fear Not! Shockingly Easy Framework to Evaluate Your Next Great Idea
Eight questions to determine if you have a million dollar idea!
If you’re anything like me, your mind likely fills to the brim with ideas on a daily basis. It’s a side effect of having an active and entrepreneurial mind.
As great as having a constant influx of exciting ideas is, it can get out of hand if left unchecked. The ideas can build up and become overwhelming — cue mental overload.
The best way to avoid this is by developing a framework to evaluate your ideas. A framework provides structure to determine which ideas are promising and worth pursuing and which should be placed on the back burner.
This sound like a relatively easy task but can often be made difficult due to mental fatigue, emotional decision-making, or any number of biases.
That’s why it’s crucial to have an established framework to fall back on, something to guide you when external factors interfere. A well-thought-out framework will keep you accountable and ensure your ideas are acted upon and materialize.
There are countless idea evaluation frameworks, but today we’ll dive into Michael Michalko’s eight-factor evaluation method. He’s the best-selling author of Thinkertoys, a handbook of creative thinking techniques.
Before we dive into the eight factors, it’s important to note they carry different point distributions. The first three questions are evaluated on a score of 0 to 20, the second set of three questions are scored from 0 to 10, and the last two are scored from 0 to 5.
On question 1, for example, a score of 0 means you can’t communicate the idea at all, while a score of 20 means you can easily communicate the idea.
Ideas scoring 50+ points are considered worthy of further exploration.
Let’s jump into it!
20 Point Questions
Q1: Can I communicate the idea completely and clearly?
Would you be able to explain your idea to a child in a way they understand?
People have made careers out of explaining the complex in laymen’s terms. Ensure that your idea can be easily understood by the average person and remove any unnecessary jargon or overly technical terms.
Q2: How much interest do I have in this idea?
An excellent way to answer this question is to spend some time working on the idea and reflecting on how you felt while working.
Did you reach a flow state? After you stopped working, did you yearn to get back to work?
Nobody can tell you how much interest you have in an idea. You must be intentional and reflective about how the idea makes you feel.
Q3: How good is my opportunity to implement it?
Do a little research and identify a rough estimate of the time commitment and financial obligation required for implementation.
It may also serve you well to do a little market research and see if the market is saturated or if there is still a lot of opportunity.
10 Point Questions
Q4: Do I have the skills to implement this idea?
Look at similar ideas and relevant case studies. What skills and actions were necessary for completion? This step will require some research and honest self-evaluation.
Even if you do not have the skills to implement the idea, you will need to evaluate the feasibility of partnering/contracting/hiring someone who does have the necessary skills.
Q5: Would following through on this be a good application of my personal strengths?
Will pursuing this idea develop your skills. Even if the idea ultimately ends up unsuccessful, will you be better off for having attempted it?
Q6: How unique is this idea?
To answer this question, you will again have to do some brief research on the market you’re trying to enter.
Look at products and services in the industry you’re attempting to enter, how does your idea compare to what’s already out there? What makes your idea special or different?
5 Point Questions
Q7: How good is the idea’s timing?
You have an idea for an educational service, but summer is quickly approaching. Do you release the service rollout right now, or might it be beneficial to wait a few more months until school starts back up?
Ensuring your idea has good timing will lead to quicker implementation and greater adoption. Understand the industry you are attempting to enter and the surrounding context.
Q8: Does this idea have good competitive advantages?
Can you bring your idea to life better or more cheaply than competitors? Evaluate the inputs required for your idea’s implementation and compare them against the market.
If you found this framework helpful, let me know in the comments, and follow along for more articles about entrepreneurship and mental frameworks! Additionally, I encourage you to check out more of Michael Michalko’s work by following him on Twitter!
