Evaluate Startup Ideas for Success | Startup School

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This article is a summary of a YouTube video "How to Get and Evaluate Startup Ideas | Startup School" by Y Combinator
TLDR Founders can find success by evaluating their initial idea, finding the right team, and shopping for ideas in a fertile idea space.

Finding the Right Problem

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    The most common mistake with startup ideas is building something that doesn't solve a real problem for users.
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    Start with a high quality problem, not a solution in search of a problem, to ensure people actually care about your solution.
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    Founders should Google their startup idea to see who has worked on it in the past and figure out what the hard part of the idea is that has caused others to not be able to solve it.
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    Your startup idea doesn't have to be perfect, it just needs to have enough interesting qualities to morph in the right direction.
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    Founder market fit is crucial for startup success, as the right team with relevant expertise can make all the difference in bringing an idea to life.
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    A good problem for a startup is one where the alternative to your solution is literally nothing.
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    Despite thousands of developers recognizing the problem of integrating credit card payments to websites, only Stripe's founders were willing to tackle the difficult aspects of building the solution.
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    A great market situation for a startup is one with existing competitors, but where the startup has noticed something the competitors have missed or where the competitors' products are lacking.
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    Look for big industries that seem broken as they are probably right for disruption when it comes to finding a startup idea.

Creative Idea Generation

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    The best way to come up with startup ideas is to notice them organically, as at least 70% of YC top 100 companies had their ideas this way.
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    To generate startup ideas, become an expert in a valuable field by working at a startup and building things that you find interesting.
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    Sometimes the best startup ideas come from industries that are not traditionally associated with tech startups, like veterinary medicine.
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    Look for things in the world that have changed recently that might have created a new opportunity for startups, like the pandemic creating new opportunities for companies like Gather Town.

Q&A

  • How can founders evaluate their initial idea for success?

    Founders can evaluate their initial idea by using conceptual tools and analyzing successful YC companies.

  • What should founders focus on when coming up with startup ideas?

    Founders should focus on specific, tractable problems rather than abstract ideas.

  • Why can founders get stuck in a tar pit when working on startup ideas?

    Founders can get stuck in a tar pit when working on startup ideas that appear to solve a widespread problem but are actually impossible to solve.

  • How can founders find the right team for their startup?

    Founders can find the right team for their startup by looking for individuals who are good at executing ideas in a big or rapidly growing market.

  • Is competition a sign of a good startup idea?

    Yes, competition is usually a sign of a good startup idea, but founders need a new insight to go up against entrenched competition.

Timestamped Summary

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    00:00
    This talk provides tools to help founders come up with good startup ideas and avoid tar pit ideas.
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    05:06
    Start with an initial idea and use the 10 key questions to evaluate it, then find the right team to execute it in a big or rapidly growing market.
  • 🤔
    08:31
    Starting a business in a competitive market requires a unique insight, such as using a proxy to show potential success or leveraging new technology or regulations.
  • 💡
    11:22
    Shopping for ideas in a fertile idea space, and capitalizing on opportunities that others shy away from, can lead to success for founders.
  • 🤔
    16:26
    Organically noticing startup ideas is more likely to lead to success than explicitly trying to think of them.
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    20:33
    Use your expertise to come up with an idea with perfect founder market fit for success.
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    23:29
    Found a problem? Create a solution! Think before using this recipe to avoid tar pit ideas.
  • 💡
    26:23
    Founders can find success by looking for new opportunities, talking to potential customers and founders, and mapping out the space to find a good startup idea.
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This article is a summary of a YouTube video "How to Get and Evaluate Startup Ideas | Startup School" by Y Combinator
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