Jethro's Braindump

How to brainstorm great business ideas

tags
Business
author
Courtland Allen

Executing the ideas require being strong in four main components:

  1. The problem (aka the market)
  2. The distribution channel to reach customers
  3. The monetization model
  4. The solution to the problem (aka the product or service)

What makes a good problem?

  1. A good problem is one that many people have. A good number to aim for is at least hundred thousand.
  2. It is ideal if a group of people face the same problem (e.g. “developers”)
  3. Problem is growing: more people will face it in time to come
  4. It’s a good problem that people will pay money to solve

Always first search for a good problem. It may help to look at what people are allready paying money for.

Avoid Common Mistakes

  1. Don’t start with a solution in mind
  2. Don’t rule out already solved problems
  3. Don’t rule out high-value problems
  4. Have a customer in mind

Don’t Skip Distribution

Knowing how to reach customers is important. There aren’t many channels to investigate, so go through them all. Some examples of channels are:

  • SEO
  • press
  • content marketing
  • social media
  • sales
  • partnerships
  • ads

Thinking about solutions

  • Solve problems in the opposite way of competitors
  • Solutions should be built on first principles
  • Product-market fit
    • Stripe focus heavily on API design and documentation, because its market is developers
  • Product-distribution fit

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