The most common mistake founders make is building something that doesn't solve a real problem for users ("solution in search of a problem").
Great startup ideas typically come from problems founders have personally experienced or areas where they have domain expertise.
Three counterintuitive qualities that often make good startup ideas: ideas that are hard to get started, ideas in boring spaces, and ideas with existing competitors.
Most billion-dollar companies didn't start with a perfect idea but with a promising starting point that evolved over time.
There are two types of viable markets for startups: markets that are already large, and markets that are small but growing rapidly.
Understanding Common Startup Idea Mistakes
Solution in Search of a Problem (SISP)
Many founders start with a technology they find interesting (like AI) and then look for applications
This approach typically leads to solving problems that aren't actual pain points
If users don't care about the problem, they won't care about your solution
Better approach: Fall in love with a problem first, then develop solutions
Tar Pit Ideas
Common ideas that seem promising but have structural reasons why they're difficult or impossible to execute
Example: Apps for coordinating social meetups have been attempted for 20+ years with limited success
These ideas attract many founders because they're superficially plausible and address widespread problems
How to avoid tar pits:
Google your idea thoroughly to see previous attempts
Talk to founders who've worked on similar ideas
Understand the specific challenges that caused others to fail
Insufficient Idea Evaluation
Many founders jump into the first idea they have without proper evaluation
Equally dangerous: Waiting for the "perfect" idea (which doesn't exist)
The ideal approach is finding a balance - a strong starting point with potential to evolve
Think of ideas as starting points, not fixed destinations
Evaluating Startup Ideas: 10 Key Questions
1. Do you have founder-market fit?
Are you and your team the right people to solve this problem?
Example: PlanGrid founders combined construction industry expertise with technical skills
This is perhaps the most important criteria for startup success
Look for ideas where your unique background gives you an advantage
2. How big is the market?
Viable startup markets are either:
Large markets (billion+ dollars) that already exist
Small markets that are growing extremely rapidly
Example: Coinbase entered the Bitcoin trading market when it was tiny but growing exponentially
3. How acute is the problem?
The best problems are ones where:
The pain point is significant
Current solutions are inadequate or non-existent
Example: Brex identified that startups couldn't get corporate credit cards from traditional banks
4. Do you have competition?
Counter-intuitively, having competition often validates market demand
Most successful startups had competitors when they launched
For entrenched competitors, you need a unique insight or approach
No competition might indicate no market demand
5. Do you want this yourself? Do you know people who want it?
If neither you nor people you know want your solution, that's concerning
Direct personal experience with the problem creates better understanding
Talk to potential users early and often
6. Has this recently become possible or necessary?
Great opportunities often arise from recent changes:
New technologies
Regulatory changes
Market shifts
Example: Checkr built background check APIs when on-demand economy companies needed to screen workers at scale
7. Are there proxies for success?
A proxy is a similar business succeeding in a different market
Example: Rappi saw food delivery working in the US and adapted it to Latin America
Proxies validate that the business model can work
8. Is this an idea you'd want to work on for years?
Initial excitement about an idea often fades
Success is more about execution than the initial concept
Many initially "boring" ideas become compelling as they gain traction
9. Is this a scalable business?
Pure software businesses scale well
Services requiring high-skill human labor often don't scale
Be cautious of businesses that require intensive human operations
10. Is this a good idea space?
An "idea space" is a class of related startup ideas
Different idea spaces have dramatically different success rates
Choosing a fertile idea space improves chances of finding adjacent opportunities
Example: Fintech infrastructure and enterprise SaaS have had high success rates
Counter-Intuitive Qualities of Good Startup Ideas
Ideas That Are Hard to Get Started
Barriers to entry can be an advantage - they deter competition
