Most entrepreneurs looking to start a new business have a limited number of startup ideas and eventually pick one from a small list. Some entrepreneurs on the other hand have a gift for coming up with startup ideas, but then like having too many choices of cereal at the grocery store, run into analysis paralysis and get bogged down making a decision. Of course, picking a startup idea is a huge decision, so it shouldn’t be taken lightly.
Here are a few things to consider when picking a startup idea:
- Market Timing – Is this an idea that’s going to be successful some day but timing the market will be critical to success or is clear that the opportunity is in the short run (e.g. next 1-2 years)?
- Domain Expertise – How much experience do you need to be productive for this startup? Does not having experience help so that you have a fresh perspective?
- Capital – How capital-light or capital-intensive is the startup idea and what are you comfortable with?
- Passion – How passionate and committed are you to the industry and opportunity vs something that you think will be successful but aren’t that interested in?
Picking a startup idea is a big decision but picking a market to be in is a monumental decision. I’ve never met an entrepreneur that was successful with their original idea — the idea always changed but their market rarely did.
What else? What are some other things to consider when picking a startup idea?