For us, I have a framework that we use to pick ideas.
Assuming you have an Idea, Check for the following 👇🏻
- Does the Problem Exist? Is it validated?
- We often get enticed by building products that are solutions looking for problems. Always, validate your problem before building the product. Do not start before validating the problem statement. I repeat, Do Not!
- Who are you building it for?
- Always define who your user is – Do not build something for everyone. You can always come up with a thesis that you can iterate on the go but always define who your user is.
- We built an avatar generator tool and we thought everyone will use it. When we launched it, we were all over the place in terms of marketing because we had no clue whom we were sellling it to. As a result, very few users used our product.
- Do not build anything for everyone. Always start with identifying your user persona when you have zeroed down on the problem statement.
- Does your User have the paying propensity?
- You have a valid problem statement and also know who your user is but you may still fail because your user does not have the paying propensity. Do not build for users who may not have the paying propensity in case you’re looking to monetise your saas.
- If I were to build an app that would curate content across social media and serve it to you – Will you use it? For sure. Will you pay for it? You might not.
- Get your customer research right and ensure you target user personas have the paying propensity for your kind of product.
- Operational Intensity
- I personally do not like operationally intense products. I have worked in such companies in the past and I don’t want to do it again. For that reason, I try to stay away from building platforms such as marketplaces wherein you have to solve three things – demand, supply and the platform.
- Do you know how to sell it?
- Last, you must have a plan in place to distribute your product. If not, dont do it. A product without users is worthless.
How to analyze if the problem is good enough? Answer the questions below👇🏻
- Does your potential user have the propensity to pay?
- Does your solution saves time or money or boosts either? Both is better 🙂
- Nature of Problem – One time or Recurring? Recurring is better 🙂
- Easier to reach potential users – They hang out somewhere (Reddit communities, FB or Slack group, etc) on the Internet
- Not Operations heavy – Once the initial version is built, all the processes and tech work on auto mode without a lot of manual effort involved
- Not a lot of compliances or external approvals are required (Fintech, Security)
- Competitors exist in some or another way – this validates the problem and makes sure that users already know and care to solve the problem (eliminates the need to educate users about the problem)
- The market is not overcrowded where this solution has already began a commodity (eg: social scheduling tools) and stong distribution (If you have strong distribution that’s a different story altogether) and aggressive pricing is the only differentiator
- You have good knowledge about the industry you are building in
- You know a clear path to the first 100 users