Page 86 - The $100 Startup_ Reinvent the Way You Make a Living, Do What You Love
P. 86
one time. In that case, you’ll need some method of evaluation. Here’s one
option: the decision-making matrix.
In this matrix, you’ll list your ideas in the left-hand column and then score
them on a scale of 1 to 5, with 5 being the highest. Granted, the scoring will be
subjective, but since we’re looking for trends, it’s OK to estimate. Score your
ideas according to these criteria:
Impact: Overall, how much of an impact will this project make on your
business and customers?
Effort: How much time and work will it take to create the project? (In
this case, a lower score indicates more effort, so choose 1 for a project that
requires a ton of work and 5 for a project that requires almost no work.)
Profitability: Relative to the other ideas, how much money will the
project bring in?
Vision: How close of a fit is this project with your overall mission and
vision?
Rank each item on a scale of 1 to 5 and then add them up in the right-hand
column. Remember, you’re looking for trends. If you have to cut one project, cut
the lowest one; if you can only take on one project, proceed with the highest one.
Here’s an example from my own business, when I was deciding which
business projects to pursue in the second half of 2011:
