STEP 6:
Begin Techno-Economic Analysis (TEA)

Entrepreneurs need to assess whether their solutions are technologically capable of performing as needed by the market. This mode of assessment is called Techno-Economic Analysis (TEA). Like PMR, TEA starts early and continues throughout the venture building process. It often involves the creation of a model that translates technical aspects into economic output. This model will start rough and improve over time.

If you’re doing a tech-push venture, where you start with a technology and search for the right application, then you will likely jump right into doing an initial TEA. If you’re doing a market-pull venture, where you start with a problem in the market and search for the right technology to solve it, then you should instead start with a Technology-Problem Matching Matrix to evaluate how various current and emerging technologies align with the problem you’re tackling.

In either case, this step gets you thinking about factors like costs, performance metrics, and market readiness. TEA forces you to balance innovation with practicality. You might have a groundbreaking technology, but if it’s too expensive or not scalable, it won’t make the impact you’re aiming for. This step helps you identify potential roadblocks early, and gives you the chance to refine your approach.

By the end of Step 6, you’ll have a clear understanding of whether there’s a fit between the problem you aim to solve and the technology available for solving it. This analysis will evolve over time, and it will eventually be a powerful tool for communicating with investors, customers, and other stakeholders who need to see the numbers before they buy in.