Founders Kitchen Sink: Shaping an online business idea. Principles which you should hold on to

tl;dr

  • Before you start working on the project, consider it from the market perspective.
  • The project either opens a new market or extends the existing one.
  • Follow some principles/rules when working on the project on the idea level.
  • Ensure your product will do at least one of: earn money, save money, save time.
  • Have scalability in mind but don’t focus on it too soon.
  • Focus on solving a problem and delivering value rather than features.

Market Perspective

Project ideas which open a new market are bringing the most of the excitement to its founders. These allow them to be the first on the market, and it means that they’re a pioneer and don’t have to compete with others. The challenging part is here that creating the market from scratch is difficult, it requires a lot of resources, and a lot of time is necessary before these projects will make revenue. Just think about how much energy and time Tesla had to spend before they sold the first electric car. Or think about how long Bitcoin was on the market before it boomed. Of course, some projects can create market effortlessly. However, these are unicorns, and it does not happen often.

Three Basic Principles

The first principle is something that I have learned from a business partner Jason Alexis with who I’ve created CCB.events, and this principle says that the product that you are going to develop should do at least one of the three things. It should: allow you to earn money, save money or save time. If your project can do three of these things, you hit the jackpot! Now there is a small exercise you can do with this principle, imagine a triangle where each vertex of the triangle is: save money, save time or earn money and try to fill the triangle depending on what you think your project does. It is something that you can use in your marketing campaign.

Real-Life Example

That is a set of three basic principles. I know that there are other, more complex principles and probably you have your own set of principles. If you do please share this in a comment. It’s worth following some rules at the beginning because it will allow you to avoid harmful and painful confrontation with reality.

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Piotr Pozniak

Piotr Pozniak

10 Followers

Helping businesses increase revenue and improve the accuracy of their cost estimations. Co-founder of The Beaverhead, solving challenges through custom software