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How to choose your next startup idea

here is my own filtering mechanism evolved over the years..

  • large market, lots of room to play: this helps in moving vertically and horizontally when things don’t work out as planned and keeps investor interest
  • quantifiable value proposition for customer: must save lots of time and money and provide hard value
  • have rich customers who can pay handsomely for the value they get. they should have stable income sources of their own
  • ‘in the trend’ on the upswing: you get to experience rapid growth just because you in the uptrend. technology shifts, behavioral changes
  • can i gather and put a world class team loose on this problem?
  • does it have a clear profitability path and exit? historical data is great to have. where does this solution ‘fit’ in the larger echosystem?
  • can i go viral or have very less marketing cost in the longer run? can it spread without a lot of cash?
  • can i keep up to the competition sufficiently to gain a sustainable advantage or is it just a feature race (this is a moving target that you never hit)?
  • can you test all your assumptions about the market, customers, pricing, distribution very cheaply?
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