At the initial stage of a startup, the core idea makes a huge difference. Small changes in your initial idea/direction will make a big difference to where you end up.
Five Frameworks to Refine Startup Ideas:
Innovate Just Enough
- Novelty is a risk.
- The biggest ideas often strike a balance between what has been proven to work and something totally new.
Leverage Technological Shifts
- Without a big tech shift underlying your idea, it’s less likely to be a breakout hit.
Take More Risks
- Contrarian ideas allow you to compete in a less crowded market.
- This is particularly helpful in network effect businesses and in consumer businesses.
- The biggest ideas are not consensus ideas
Solving a Problem vs. Creating Opportunity
- When evaluating ideas, you should certainly think about how much they are solving a clear problem.
- Think about what new opportunities they might be creating.
Market Risk vs. Execution Risk
- Market risk is when you don’t know if anyone will want what you are building.
- Execution risk is when you don’t know if you can execute at a world-class level on the idea.
- Evaluate your ideas to see how much of each of these two risks it takes on and which you are better suited to solve.