How to create an Idea statement for your startup or corporate venture
When you have an idea and you start working on it, it’s helpful to create a clear and concise description of your idea, we call this an Idea statement. There is going to be a point where you’ll need to present your idea to the world. One scenario in which you can find yourself is the Elevator Pitch. This is a short oral presentation in the time it takes to complete an elevator ride, which is 30 to 90 seconds. This 30-90 seconds can be all you get to convince, for example, investors of your idea. With an Elevator Pitch, it can then be hard to present your idea in such little time. The Idea Statement is a tool to get the most relevant elements of your start-up idea across one sentence, being able to do this can then be crucial for convincing your audience. For corporate venture builders, creating an idea statement will also allow you to compare ideas better.
How to create an idea statement
Before creating an idea statement, you must know for which problem your idea is providing a solution. Because working on an idea that is not solving a problem worth solving is a waste of time and money. We use a problem statement to make sure this is not the case. If you know your customer’s problem, it is time to create an idea statement.
To create an idea statement we use the following formula: <name of idea> is a <type of solution> that <does X> in order to < accomplish Y>
To clarify it a bit more, let’s take Booking.com as an example. The Idea statement of Booking.com would be: Booking.com is a digital platform that allows you to book hotel rooms in order to plan city trips in a cost-effective and easy manner.
In this idea statement is:
- Booking.com the name of the idea.
- The type of solution a digital platform.
- X is that it allows us to book rooms.
- The accomplishment Y is planing city trips in a cost-effective and easy manner.
Let’s do one more. For our company, GroundControl, the idea statement is:
GroundControl is a software platform that offers corporate venture builders a systematic approach to innovation and enables data-driven decision making, in order to help ventures make innovation work.
In the idea statement is
- GroundControl the name.
- A software platform the solution type.
- X is offering a systematic approach to innovation and enabling data-driven decision-making.
- Y is to help your ventures make innovation work.
You want everyone to be able to understand your Idea statement. No matter if this is a friend, a college, or an investor. The better your Idea statement the more proof that you understand the essence of your own idea.
A couple of tips to keep your Idea statement as clear and concise as possible are:
- Don’t use jargon
- Avoid using adjectives
- Stay away from buzzwords
Finally, remember that your idea statement is not set in stone. Generally, you create the Idea statement at the beginning phase of your startup, so it is possible it will change during the course of your journey.