You're About to Waste Time on a Bad Idea. Here's How to Stop.

As an entrepreneur, there's a lesson I keep having to learn. I see a problem that needs solving and just want to go for it. Intuition leads the way instead of rational thinking. Instead of pausing to figure out if the idea is any good—if the problem exists at a large enough scale, if the solution is actually the right one—I want to plow ahead.

There's a better way. It only involves one sheet of paper and some basic research.

Even though we're well past startup mode, this method still works for us here at LivePlan. As we consider adding new features, we use this same method to figure out if the idea is worth pursuing. This method works just as well for established companies exploring their next idea as it does for an entrepreneur thinking about making their first prototype or considering making the leap and starting their business.

The first step is documenting your idea. Taking that extra beat to think more carefully about your idea and write down how it will work is valuable in itself. Writing transforms vague notions into concrete specifics. Aspects that might not be well defined suddenly require description.

You'll document your idea using a one-page plan (sometimes called a "canvas") that includes:

• Problem you’re solving
• Your solution to the problem
• A specific description of the customers you’ll be serving
• The competition and alternative solutions your customers currently use
• Your differentiators that are the reasons customers will choose you over your competitors

You can download a template here.

You don't have to be a writer to accomplish this. Just write down a few words or bullet points for each section.

The most important thing to define is the problem you're solving. If you aren't solving a real problem, you're going to struggle building a business. Customers spend money when you're solving a problem they actually have. Without a concrete problem, success is unlikely.Once you’ve invested time documenting your idea, the next step is to validate it. That is, you need to figure out if the assumptions that you just wrote down are real.

This matters especially if you're solving a problem you yourself have. You need to confirm that other people experience the same problem.

Start by searching online forums, Reddit, LinkedIn groups, and Facebook groups. Find people who have the problem you're solving. See what solutions get recommended. If you don't find anyone discussing the problem, that's a red flag. If solutions are plentiful and well-liked, your entry into the market will be challenging.

Not every idea will spawn online discussions that directly relate to it. Take Skinny Dipped's chocolate-covered almonds (which are delicious). People weren't discussing the poor quality of existing chocolate-covered almond products. Instead, they were talking about the lack of healthy but indulgent snacks. You need to think broadly about the problem you're solving when you search.The alternative is getting out from behind the computer and talking to potential customers. Do they have the problem you think they have? Do they like your solution? Would they pay to solve the problem? This route is harder—you might face rejection in person—but it's far less painful than starting a business that fails because customers don't buy.

Taking these steps may feel like slowing down. But this slowdown is worth it. You'll either move forward faster with a validated idea or avoid wasting time on one that doesn't have legs.

I'd be interested to hear how this approach works for you, or what validation methods have helped you the most. Find me on Reddit or LinkedIn and let me know.