Frameworks for coming up with startup ideas 👇
"The best way to come up with startup ideas is to lead an interesting life & be curious.
If you put yourself in a position to have problems—if you're at a company, if you start a family, etc—you'll be in a position to have ideas."
"The best way to come up with startup ideas is to lead an interesting life & be curious.
If you put yourself in a position to have problems—if you're at a company, if you start a family, etc—you'll be in a position to have ideas."
Framework 0: "Put yourself in position to viscerally feel problems that matter to other ppl at scale
e.g. most college students focus on their own problems: The Pizza Problem. The Tinder Problem. The Friday Night Problem.
Go work at, say, Chevron & get exposed to new problems."
e.g. most college students focus on their own problems: The Pizza Problem. The Tinder Problem. The Friday Night Problem.
Go work at, say, Chevron & get exposed to new problems."
Framework 1: When they go high, you go boring
Pick something that’s so boring (but hard/big) that other people just *won’t* do it. Something that's neither flashy nor sexy to tell others about.
Example: Lumi.com + packaging. Inspired by my podcast w/ @jessegenet
Pick something that’s so boring (but hard/big) that other people just *won’t* do it. Something that's neither flashy nor sexy to tell others about.
Example: Lumi.com + packaging. Inspired by my podcast w/ @jessegenet
Framework 2: Search for founder market fit.
Given skills, expertise, & relationships—where do you have an unfair advantage to build a biz?
What's the product that you're born to build, the company that if you didn't build, no one else would (or not in the same way?)
Given skills, expertise, & relationships—where do you have an unfair advantage to build a biz?
What's the product that you're born to build, the company that if you didn't build, no one else would (or not in the same way?)
Consider founder archetypes:
Younger founders should take market risk (market that are small or doesn't exist yet)
Older founders should take execution risk (market is very clear & execution, expertise, and relationships are the differentiator).
Younger founders should take market risk (market that are small or doesn't exist yet)
Older founders should take execution risk (market is very clear & execution, expertise, and relationships are the differentiator).
https://twitter.com/eriktorenberg/status/1243357352943738882?s=20
Framework 3: Leverage enabling technologies
Snap wouldn't have been possible w/o smartphone cameras
Youtube wouldn't have been without broadband
Wearables wouldn't have been without airpods
What new technology decrease friction somewhere else?
What's now abundant & scarce?
Snap wouldn't have been possible w/o smartphone cameras
Youtube wouldn't have been without broadband
Wearables wouldn't have been without airpods
What new technology decrease friction somewhere else?
What's now abundant & scarce?
Framework 4:
"Take a human desire, preferably one that has been around for a really long time...Identify that desire and use modern technology to take out steps." - Ev Williams
"basically either take a human need from -1 to 1, or 1 to 10000000000" - @davegoldblatt
"Take a human desire, preferably one that has been around for a really long time...Identify that desire and use modern technology to take out steps." - Ev Williams
"basically either take a human need from -1 to 1, or 1 to 10000000000" - @davegoldblatt
Framework 5: Unlock new supply using a fixed physical asset or new digital asset
FB unlocked new supply of content
Airbnb unlocked new supply of residence
Uber unlocked new supply of taxis
Instacart extends existing supply
FB unlocked new supply of content
Airbnb unlocked new supply of residence
Uber unlocked new supply of taxis
Instacart extends existing supply
Things to consider:
The best ideas sound terrible at first
But this a good thing (it means there’s less competition)
Also, the truly good ideas don’t sound like they’re worth stealing (so don’t be afraid to share your idea with others)
The best ideas sound terrible at first
But this a good thing (it means there’s less competition)
Also, the truly good ideas don’t sound like they’re worth stealing (so don’t be afraid to share your idea with others)
https://twitter.com/eriktorenberg/status/1234174173460623367?s=20
Things to consider:
Don't hide your ideas.
Startup ideas are free unless, of course, they're good & genuinely novel.
They are rarely ever really good, so the feedback you receive is probably worth more than the benefits of keeping the idea private.
Don't hide your ideas.
Startup ideas are free unless, of course, they're good & genuinely novel.
They are rarely ever really good, so the feedback you receive is probably worth more than the benefits of keeping the idea private.
Things to consider:
Ideation:
Tops-down (A new technology or regulation came out & I want to methodologically navigate what can be uniquely built as a result)
Bottoms-up (I experienced this problem, & built X to solve it)
Both can work, but there's a stigma against tops-down
Ideation:
Tops-down (A new technology or regulation came out & I want to methodologically navigate what can be uniquely built as a result)
Bottoms-up (I experienced this problem, & built X to solve it)
Both can work, but there's a stigma against tops-down
For tops-down you need to:
Celebrate "distance traveled" on an idea rather than landing on an idea.
Why is this important?
They meet ppl who ask them, "what are you doing?"
They panic, "well, I don't want to be a dabbler for the rest of my life" & pick an idea. Don't rush!
Celebrate "distance traveled" on an idea rather than landing on an idea.
Why is this important?
They meet ppl who ask them, "what are you doing?"
They panic, "well, I don't want to be a dabbler for the rest of my life" & pick an idea. Don't rush!
For tops-down, also don't get stuck in the clouds!
Tops-down often struggle b/c they focus too high-level & long-term, not enough on what's in front of them.
Instead, find the little thing you can execute against for the next few months....that could lead to this larger thing.
Tops-down often struggle b/c they focus too high-level & long-term, not enough on what's in front of them.
Instead, find the little thing you can execute against for the next few months....that could lead to this larger thing.
Things to consider:
Don't pursue double miracle startups (or "bank shots").
A startup miracle is the key difficult thing you need to pull off for your startup to work.
Startups should only require one miracle, not two.
As told here: blog.eladgil.com/2012/10/startu…
Don't pursue double miracle startups (or "bank shots").
A startup miracle is the key difficult thing you need to pull off for your startup to work.
Startups should only require one miracle, not two.
As told here: blog.eladgil.com/2012/10/startu…
Things to consider:
“There are no bad ideas. There are only early ideas… They’ll all happen. I’ve become convinced...Every smart person that comes in here with a crazy idea, it’s all going to happen at some point. They will all happen. It’s just a question of when.”- Andreessen
“There are no bad ideas. There are only early ideas… They’ll all happen. I’ve become convinced...Every smart person that comes in here with a crazy idea, it’s all going to happen at some point. They will all happen. It’s just a question of when.”- Andreessen
Of course, being early is the same as being wrong practically speaking, so it's worth understanding why is the right time:
Is there an emerging technology? shift in consumer behavior? new regulation?
Is there an emerging technology? shift in consumer behavior? new regulation?
Other avenues to consider, all from @nikillinit
-Insert liquidity where liquidity didn’t exist (e.g. Opendoor)
-enable new SMBs in that area/allow ppl to go independent (e.g. Shopify)
-Reduce anxiety (e.g. Hims, Nurx)
-New regulations (Oscar w/ ACA, Plaid w/ Dodd Frank)
-Insert liquidity where liquidity didn’t exist (e.g. Opendoor)
-enable new SMBs in that area/allow ppl to go independent (e.g. Shopify)
-Reduce anxiety (e.g. Hims, Nurx)
-New regulations (Oscar w/ ACA, Plaid w/ Dodd Frank)
Things to consider:
"The best ideas are usually either very different from existing companies in one meaningful way or totally new
If it takes more than a sentence to explain what you’re doing, it’s almost always a sign that it’s too complicated"
"The best ideas are usually either very different from existing companies in one meaningful way or totally new
If it takes more than a sentence to explain what you’re doing, it’s almost always a sign that it’s too complicated"
Things to consider:
Navigate the Idea Maze:
Assume every idea's been tried, & ask why now or why you would have a different outcome.
Q's to ask:
Why'd it fail?
What were the assumptions?
Why are mine different?
How is the world different in a way that may change the outcome?
Navigate the Idea Maze:
Assume every idea's been tried, & ask why now or why you would have a different outcome.
Q's to ask:
Why'd it fail?
What were the assumptions?
Why are mine different?
How is the world different in a way that may change the outcome?
Consider distribution & GTM for different kinds of ideas:
https://twitter.com/eriktorenberg/status/1135272936657416192?s=20
Imagine a world where we had decks, post-mortems, etc on all startups
Founders would avoid minefields, build on other ppl's ideas, & better idea mazes
In short, we'd have so much more innovation
And yet we don't, b/c ppl pursue local maxima at expense of global maxima
Founders would avoid minefields, build on other ppl's ideas, & better idea mazes
In short, we'd have so much more innovation
And yet we don't, b/c ppl pursue local maxima at expense of global maxima
FIN/
If you have any frameworks for coming up with startup ideas I'd love to hear.
If you have any frameworks for coming up with startup ideas I'd love to hear.
When what was previously scarce becomes abundant, look for the constraints that go away & what 2nd order effects might emerge
It was easy to predict online ratings—it was hard to predict Airbnb
It was easy to predict taxi-hailing apps—it was hard to predict Uber
- @Alex_Danco
It was easy to predict online ratings—it was hard to predict Airbnb
It was easy to predict taxi-hailing apps—it was hard to predict Uber
- @Alex_Danco
Another framework: Look at ideas that were tried before but failed.
There was a board game that was Monopoly for failed 90s ideas
The "stupid" failed ideas were: social networking & games, reviews & group discount buying
Good ideas pan out eventually
There was a board game that was Monopoly for failed 90s ideas
The "stupid" failed ideas were: social networking & games, reviews & group discount buying
Good ideas pan out eventually
https://twitter.com/eriktorenberg/status/1243820710327275520?s=20
"Is this idea I'm pursuing a local maxima?"
Bad local maxima: You don't have unfair domain expertise, relationships, or a special insight—or the market is anomalously bad
Good local maxima: You have a proprietary advantage in a good market—nobody can build that company like you
Bad local maxima: You don't have unfair domain expertise, relationships, or a special insight—or the market is anomalously bad
Good local maxima: You have a proprietary advantage in a good market—nobody can build that company like you
"Build software that automates your job and then sell it back to your employer." - h/t @shl
Look at the products & services wealthy people use, because soon enough many of the products and services that they use to be more effective & happy will be cheap enough for the masses.
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