Startup #1: What to Build?!

Learn my lightning-fast process for generating & assessing startup ideas

Each week, I’ll share what I’ve been working on. In this edition, I’ll cover:

1. How I generate startup ideas

2. How I filter those ideas

3. What I’m building for Startup #1

1/3 How I Generate Startup Ideas

Let’s talk constraints, then process.

Constraints

Building each SaaS startup is going to come with some unique constraints:

1. I’m non-technical: I can code a bit but decided against custom code. It would a) take too long to get my first product out & b) likely get stuck on unknown issues

2. I’m going solo: I need to be really careful how I manage my time (particularly balancing it between building the product & building demand for the product)

3. Distribution is hard: If I can’t get a product in front of the right audience, the product fails. That’s why, as I outlined last week, I’m going to build these products for you, the reader (hopefully, a ready-made distribution channel!)

4. I’m self-funding: All 12 products will be paid so I can prove profitability very quickly. This means each product needs to be good enough for the target market to pay for from launch

5. I’m building using Bubble: This is easier than custom code. BUT, even with low-code, it’s easy to get stuck for days on tough, unknown tech challenges. I’ll therefore try to focus on simple solutions

6. I’m launching 1 per month: Honestly, that means I’m probably going to launch 1-2 products I’m embarrassed by. Things that lack the V of MVP. But it also forces me to ship. And the more I ship, the higher chance 1-2 products will be a bit success (more on how I define success next week).

Some would see these constraints as a limitation.

I don’t.

I simply see them as a lens to help me filter what I should - & should not - work on.

On that topic…

How do I actually come up with business ideas to assess in the first place?!

I ALWAYS start ideation using real paper or my Remarkable. It really gets those creative juices going 🧃

My Ideation Process

My process is surprisingly simple:

1. I come up with a load of potential problems to solve. Some tactics I use:

   1. I think of problems I’ve had in the last 30 days (look at things on my to-do list, my calendar, browse my banking app to see what I’ve spent money on recently, etc.)

   2. I ask friends about their problems

   3. I post on social networks

   4. I see what kind of product categories are trending on Product Hunt (e.g. accounting automation) & Indie Hackers
      

2. I define a very specific target market for the product: The more specific, the easier it will be to attract that group & build the right thing for them e.g. Better to build for “1st time Product Managers in Series A startups” than “all product people”

   

   Example from my ideation worksheet

3. I come up with a few possible ways I could solve the problem e.g. If the problem is “creating product updates takes me hours each week”, I could build a “product update AI assistant”, a “platform for creating & storing these updates”, or maybe even address the root problem here of “a tool to help you stand out to your boss”. There are always way more ways of solving a problem than we at first think
   

P.S. Thanks for everyone who filled in the survey, which help me 1) Gauge acuteness, 2) Addressability & 3) Generate startup ideas!

2/3 How I Filter My Ideas

At this stage, I’ve got 10+ solutions I could build. Now it’s time to stress-test those ideas. To do that, I will filter out ideas that don’t hit 5/7 of the following criteria:

1. 🚑 Is it solving an acute problem?

   • If so, the target customer is much more motivated to check out your offer, try it out, and ultimately, pay for it.

   • (This is why I sent out the survey above last week: to get a sense of which problems were more acute)

2. 🌍 Is the market addressable?

   • If I can’t find the target market and consistently get my offer in front of them, I will get zero customers.

3. 🔍 Have I gone niche enough?

   • I want to dig 3 levels down to make this product super specific to that specific audience. Don’t build something for “all product people”. Build for “1st time Product Managers in Series A startups in London”. You’ll do a better job of attracting your audience and building a valuable product for them.

4. 🔥 Does it excite me?

   • If not, I’ll probably give up (or just do a half-baked job of working on it!). Doesn’t matter how great the idea is on paper.

5. 💰 Is this a good market?

   • Does this niche tend to spend money solving this problem?

   • Can I see a gap for a differentiated offer?

   • Does there seem to be frustration with the existing solutions here?

6. 💡 Can I think of a simple solution to build?

   • I’m working alone. I’m not a developer. I have limited resources. I need to focus on what is realistic. However, even if I had a massive, well-funded team, I would still ask this question. ALWAYS start small and simple. Create some value quickly, then iterate.

7. 📢 Is there potential for word-of-mouth?

   • In-built virality is faster, more effective, and cheaper than any marketing initiative will ever be.

Access my ideation worksheet here

Once I select a solution I see potential in, there are still two more steps before I commit to an idea:

1. Work out whether it could be profitable

2. Define a compelling offer to pitch the solution effectively

(But I’ll talk about the two frameworks I use for that in next week’s newsletter.)

3/3 What I’m Building For Startup #1

From my problem ideation exercise, I see 5-6 high-potential startup ideas I could choose from.

However, for my 1st startup, I've decided to also factor in the following:

• Setting up the architecture for my 1st solution will take a lot more time than solution 2-12. I need to create all the reusable logic (landing page, signup, accept payment, etc.) from scratch. That means less time for working on new features

• I also haven’t used low-code or code for 2 years, so there’s a learning curve. I’ll likely get stuck on a few unknowns

• I’ve also got less time in July & August, as I’m looking after my son in the afternoons

• I really want to launch Startup #1 within 30 days (by ~4th August) to give me momentum for the rest of the year

I’m therefore building what I believe is the startup with the least uncertainty.

One where I’m confident the problem is acute & addressable - & that I can solve with a simple solution.

That’s why I’ve decided to build TLDR Product Update to start, solving the problem for Product Managers who spend hours each week writing weekly product updates.

HOWEVER, I need your help defining the exact solution.

How, specifically, should I solve this?

I have some ideas, but I want your help to design what the specific solution should be (user goals, flows, wireframes, etc.).

How?

Join me in a live, interactive workshop next Wednesday 5-5.45pm (UK) to do just that 👇

Join the workshop here

That’s it for Week 1!

📣 P.S. Reply to this email, comment below or message me on LinkedIn with any ideas or feedback.

Also, Thanks to Dan Course for suggesting a live stream (more on this next week) & to Rob, Melzer, David, Claudio & Soodesh for proof-reading this newsletter 🙏

Henry

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Next Week I’ll Be Sharing…

• The business model for TLDR Product Update (Startup #1)

• How I define success for each startup

• Results from the solution workshop