Getting and Evaluating Startup Ideas

Common mistakes, ten evaluation questions, and practical ways to find startup ideas worth pursuing.

Good startup ideas begin with real problems, not just appealing solutions. These notes outline how to find those problems, assess whether you are the right team to solve them, and avoid waiting for a perfect idea.

Part of Building Startups.

Four Mistakes

1. Not solving a real problem. Start with a worthwhile problem rather than a solution looking for a use.
2. Falling for tarpit ideas. Some ideas sound intuitive and attractive but repeatedly fail because of hidden structural barriers. Investigate why previous attempts struggled.
3. Not evaluating the idea. An appealing concept still needs scrutiny.
4. Waiting for the perfect idea. Do not let the search for certainty prevent you from getting started.

Ten Key Questions

1. Do you have founder-market fit? Are you the right team to work on this idea?
2. How big is the market? It can be large today or small but growing rapidly.
3. How acute is the problem? How strongly do people need it solved?
4. Do you have competition? Most good startups have competitors; their existence is not automatically a reason to stop.
5. Do you personally want this? If not, do you know people who do?
6. Did this recently become possible or necessary? Look for changes that create new opportunities.
7. Are there good proxies for this business? Are there comparable businesses that suggest the idea could work?
8. Would you work on this for years? Consider your long-term interest, not just initial excitement.
9. Is this a scalable business? Can it grow beyond its initial customers?
10. Is this a good idea space? Consider the broader area, not only the first version of the idea.

Three Things That Can Be Advantages

Some characteristics make an idea look less attractive without necessarily making it worse:

• Hard to get started: Difficulty can discourage other teams from tackling the problem.
• A boring space: A problem does not need to sound exciting to be worth solving.
• Existing competitors: Competition can indicate that customers already want a solution.

Seven Recipes for Startup Ideas

1. Start with what your team is particularly good at.
2. Start with a problem you have encountered yourself.
3. Think of things you personally wish existed.
4. Look for things in the world that have changed recently.
5. Look for new variants of successful companies.
6. Talk to people and ask what problems they have.
7. Look for large industries that seem broken.

How to Develop Ideas Organically

Rather than relying only on brainstorming, put yourself in situations where you can notice useful problems:

• Become an expert in something valuable.
• Work at startups.
• Build things you find interesting.

Takeaway: Develop relevant expertise, pay attention to real frustrations, and evaluate the opportunities you discover.

Source: Lecture video. Adapted from my Notion notes.