My Criteria for Picking Startup Ideas
1. I am a bootstrapper, so I am interested in making recurring revenue and build an asset. So it has to be a SAAS idea. No consumer internet.
2. It has to have a competition. Again, I want to make money, not be a pioneer.
3. It need not be a multi-million dollar potential startup. I prefer it if it’s possible never exceeds a million dollars at its peak. It is because I don’t want to offer a platform, but a small subset of features that people find useful and the big guys find too small a market niche to address.
4. I prefer it if it does not need any design skills. With Proxies API, it is all about technology and how it works. I am in my element when I can run with just code and not have to pause for ‘prettifying stuff.’
5. I want a self-serve model. It is because I want to acquire customers by marketing rather than by sales. I have nothing against sales. I prefer this as I like to code, and I am a bit shy and introverted. I can write, in any case.
6. I want a field where I can write a lot about it. Just by looking at the area, I should be able to imagine what my first ten blog posts will be. If I can’t write, I can’t market. So I would slightly not touch it as I am not good at the rest of them.
7. The product should not be commoditized. It’s happening in almost any market after about five years. Social media tools are an example. They were selling at $100 pm a few years back now people are offering it free.
8. The technology should provide a moat against every amateur trying to start a company. That’s why there are a million to-do list apps. That’s practically the first thing they teach in any course.
9. I want to identify the primary keyword that drives traffic and search for that keyword on Google Trends. Google Trends should show the keyword gaining in popularity ideally, or at least it should be a flat line for the last five years. I will stay away from anything that is on its way out. 10. I want the users to get the AHA moment in one line or one image and not in multiple steps or after they “add 18 friends and two monkeys” rubbish. Just one look and the value prop is right there. With Proxies API, it was always this image and line. In essence, it immediately drove home this visceral power of using a single API call to solve an entire gamut of problem-related to scaling web crawling. The author is the founder of Proxies API the rotating proxies service. This article originally appeared here: https://www.proxiesapi.com/blog/My-Criteria-For-Picking-Startup-Ideas.php
22 comments
[ 2.3 ms ] story [ 83.6 ms ] threadQuestion out of curiostiy as this is not my field: On the proxies website you state that there are around 10 million proxies. How are you able to offer this massive amount without drowning in fixed costs?
I recently watched a 2005 guest lecture[1] by Zuckerberg, it hit me then, why facebook became the success it is/was. The core insight, was the "people you may know" feature, even though that's obvious when I say it, and think about it.. It never struck me before, that, facebook could have been anything (and, was indeed very different back then) and still have succeeded because solving that problem in a seemingly more efficient way at the time then nobody chocked on it.
[1]https://www.youtube.com/watch?v=xFFs9UgOAlE
Just my opinion, but technology moats are very hard to achieve, and almost impossible if you're a solo founder. How exactly are you going to achieve a technology moat with no capital as a solo founder? Do you honestly believe you are such a good developer that no one is going to be able to recreate what you've done? Probably not.
Technology moats generally take two forms: Either they prohibitively expensive, or they're prohibitively complex - or both. If you're not a multi-millionaire or you don't have a 100 person team, in all likeliness you're not doing either.
As a solo founder what you to look for is something that has network effects, that you can brand effectively, or a market that's has some non-tech barrier to entry. A non-tech barriers to entry might include geographical constraints or trust.
Another thing I'd add about high-tech startups is that they're probably one of the hardest ways to make money. You want to build some kind of AI tool? Okay, good luck competing with some of the smartest people on Earth to build that. Personally I like to look for places where people much less intelligent than me are making good money then see if I can improve on what they're doing with some simple technology. This is the genius of startups like Uber. The taxi industry was an incredibly low-tech industry prior to Uber. It was a great candidate for how some relatively simple tech combined with network-effects can become a multi-billion dollar company.
I'm confident in selling it for 25k per year to businesses because:
* there's a one line migration in from OpenAI
* Self housting will save the companies entire OpenAI bill
* OpenAI doesn't have some features I do like autocomplete or generating a set number of sentences
* Generating multi lingual text and code is a hard problem to solve yourself, specifically it's a larger than 25k development problem, so will cost more if you want to try solve it yourself right now, so businesses would rather pay some money to have it now which also reduces risk for them.
With a lot of experience in a field and hard work it's very possible to create something others can't feasibly do, or do for the price you do
So you want to have a technology that's proofed against "every amateur trying to start a company" ... but you're a solo dev who thinks he's better than every other amateur trying to start a company?
This is also in direct conflict with your #2: >2. It has to have a competition. Again, I want to make money, not be a pioneer.
Can't have it both ways
Hate to break it to you ... but marketing is sales, friend :)
Your service is already being commoditized, with ScrapingBee, OxyLabs, Bright Data and others already offering similar services.
Being commoditized isn't something to avoided IMO. I think most products created by bootstrapped eventually will be commoditized. Sometimes, you can just be first in the market, or market your product better than your competitors. Or fulfill a need so niche that nobody wants to even consider it.
If I post my email address here that doesn’t mean I’m fine with it being crawled and sold along with a million other email addresses to spammers.
Where people live, their relatives, their social security #, their employer, it’s basically all out there. But because it’s kind of hard to extract this info from public records we enjoy relatively safe pseudonymity.