So, you’ve come across a startup product or service that claims to solve a glaring inefficiency or fill a gap—whether it’s in the corporate world or beyond. You’re intrigued, but you’re not sure whether it’s worth your time, money, or energy. Whether you’re thinking about joining, investing, or partnering up, evaluating the product or service thoroughly is a must. Let’s break down how to figure out if this product or service is the real deal or just another shiny object.

Step 1: Identify a Genuine Opportunity

Not every successful startup has to tackle an existential problem. Often, it’s about creating new value, such as by providing entertainment, facilitating connections, or achieving a meaningful social impact. If the potential market is large enough, the impact is significant, or the founder’s vision is compelling, the product or service could be worth your attention.

Before you get too caught up in the excitement, do a quick gut check with these questions:

• Does the problem feel urgent and widespread, or is the solution just creating meaningful value, even if it’s not solving a critical issue?
• Are people willing to pay or support the product or service as a social cause or entertainment experience?
• Does it stand out clearly from existing offerings or bring a fresh angle to the market?
• Is the market large enough to make it worth your while?

Step 2: Conduct Market Research

Once you’ve got a gut feeling that the product or service might be worth it, it’s time to dig deeper. Get the startup to show their homework. You’re looking for cost-effective, quick research that proves they’re not just guessing. Here’s what they should be presenting:

• Competitor analysis highlighting differentiation and competitive advantages
• Customer surveys validating pain points or interest from either primary or secondary research
• Industry trends analysis for understanding market size and potential
• Relevant internal analytics or insights from any prior experience or initiatives Helpful Resources
• Google Trends – to gauge consumer interest and market trends
• SurveyMonkey – for customer feedback and validation
• Crunchbase – to explore industry competitors and market data
• Statista – For industry research
• AI tools such as ChatGPT to get quick answers. Use these to get started but not to finish your research

Step 3: Rapid MVP Testing

No one’s got time to build a full-blown product only to find out nobody wants it. That’s where an MVP comes in. A Minimum Viable Product should be just enough to prove the product or service works without over-engineering. 

Sound advice here is to see whether the team is doing things that don’t scale but can provide the insight to whether the product is doing what they say it does. This can range from manually onboarding customers, talking to customers directly, and hands on managing data. If they’re not properly tapped into their end user base, then they’re probably not getting the insight needed to improve the product to find product market fit.

When evaluating a startup’s MVP, look for:

• Cost-effective prototypes built via no-code/low-code platforms, or minimal implementations that focus on continuous testing and validation
• Clear indicators of market interest, such as landing page sign-ups, pre-orders, or credible beta feedback
• Usability tests and data that show it’s not just functional but actually useful
• Engagement metrics proving people care enough to keep using it

Helpful Resources

• Bubble – for rapid prototyping and no-code MVP development
• Retool - For connecting data to front-end solutions so you can review, visualize, and present data to your team or customers
• Google Analytics – for user engagement metrics
• UserTesting – for capturing detailed usability feedback
• Various AI tools that can help you prototype ideas rapidly

How NITM Can Help

NITM steps in to give you the no-BS evaluation that startups need before they go too far down the wrong path. Here’s what we bring to the table:

• Technical Due Diligence:

Malcolm can help confirm that the tech strategy is sound and achievable for the current phase and the roadmap

• Prototype & MVP Assessment: Our expert team analyzes existing prototypes and MVPs, ensuring they’re practical, effective, and user-friendly
• Education and Guidance: Utilize our educational content that we have developed over years of working with founders and startups to help you navigate the most common pitfalls of working with startups

Conclusion

Investing time, money, or effort into a startup should be a strategic move—not just a gut feeling. By evaluating the problem, researching the market, and making sure the MVP actually delivers value, you’ll put yourself in a position to make a smarter decision. Let NITM back you up with solid technical and strategic insights before you commit. Let’s make sure the product or service is as good as it sounds.

Additional Resources

• Y Combinator Startup School – free resources on evaluating and growing startups.
• Lean Startup by Eric Ries – essential insights on MVP testing and product validation.
• Techstars Startup Toolkit – comprehensive resources for startup success.

What’s Next?

This article is part of a12-article seriesdesigned to help mid-level managers transition into startup leadership.

Previously: Inside the Pre-Series A Startup Mindset: What to Expect and How to Thrive

Next up: Building the Right Tech Stack: A Guide for Managers Moving into Startup Leadership

Stay tuned for more insights on bridging the gap between corporate leadership and startup innovation!