Ask HN: Whats your litmus test on whether to pursue a business idea

Posted by naithemilkman on Tuesday January 04, 2011 @11:34AM
from the ask-hn dept.

Even before putting up mock landing pages and buying traffic to see how it converts, how do you first filter your ideas and decide which one to pursue?

I have a business idea like every other week and I apply this quick 3 question test to see if I should spend more time research it or not.

1. Do I feel the pain of the problem myself?

2. Is this a universal problem?

3. Am I able to solve this problem?

Interested to see your versions of a litmus test. Would also be great to get feedback just in case I've missed an important question.

P.S I wrote more about my thinking at my blog pragmaticstartup.tumblr.com

( 5 comments | 8 points | on HN )

Re:Ask HN: Whats your litmus test on whether to pursue a bus... by raquo on Tuesday January 04, 2011 @01:53PM (#2068001)

Apart from litmus test, do due diligence:

> Who else claims to solve the same problem? Examine them.

> How do those people who are unaware of specific solutions to the problem solve it?

> In theory is it easier to implement your solution, or to upgrade an existing solution?

> What are related problems?

> What's your user acquisition plan? (TechCrunch is not)

> Talk about your idea, both other developers and normal people.

[ Parent | on HN ]

Re:Ask HN: Whats your litmus test on whether to pursue a bus... by curt on Tuesday January 04, 2011 @05:04PM (#2068727)

#1: Will people pay for the solution....

(not do they say they will pay, WILL they put their money where their mouth is)

[ Parent | on HN ]

Re:Ask HN: Whats your litmus test on whether to pursue a bus... by maushu on Tuesday January 04, 2011 @11:56AM (#2067582)

For me the first question is usually enough, with the power of statistics I know that if I have this problem somebody else should have too and be aware of that fact.

The trick here is make the rest of the market that isn't aware of the problem, aware of it.

[ Parent | on HN ]

Re:Ask HN: Whats your litmus test on whether to pursue a bus... by bobx11 on Tuesday January 04, 2011 @01:18PM (#2067892)

I usually make a spreadsheet to figure out if I can make any money on it and the adjust the prices and customer numbers and marketing cost until I figure out if it's worth while to invest additional time.

[ Parent | on HN ]

Re:Ask HN: Whats your litmus test on whether to pursue a bus... by Retailslave on Tuesday January 04, 2011 @06:53PM (#2069108)

Very informative post,

I try to see if its feasible to do.

[ Parent | on HN ]