How to Evaluate a Startup

As we enter the slow summer recruiting season, now is a good time to think about your next move. If you are considering a startup, this article lays out 6 points to help you evaluate the business:

1. Is the product/service unique and relevant? Consider competitors and your startup’s value-add.
2. Is the timing right? There is ideally a trend, feature, release, law, or other game-changing event that will help your product/service be especially relevant.
3. Is the market size substantial? And users will pay for your product/service?
4. What are users’ reactions? Are the features clear and memorable?
5. Can you test a prototype now?
6. Are there barriers to entry for others? Barriers could include patents your company may own, exclusivity, unique customer base, etc.