AI Startup Blueprint

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Module 2: Idea

Good Ideas

Idea Sprint

Zoning In

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1.Envisioning Your Idea

Put your idea in writing and go beyond just a vague concept.

Your idea needs to be more than just an idea; it should be well-defined, have a clear vision and initiative.

2.Research Existing Tools

Research the AI tools already available in the market, even if you're not highly technical.

You don't need to be highly technical to benefit from this research.

This research will save you time and help you refine your idea by leveraging existing knowledge.

It will enhance the quality of your idea.

3.Ideal Customer Profile (ICP)

Start thinking about your ideal customers even before you start building your product.

Identify who would be willing to pay for your solution.

Consider who would pay for your solution and thus validate if your idea solves their problem.

Ask potential customers, "If I solve this problem, would you pay for this solution?"

4. Idea Generation

Idea generation can come from:

Industry expertise: Identify pain points or areas for optimization based on your industry knowledge.

Industry expertise revealing a problem or optimization opportunity.

You worked or are working in an industry where you have identified clear pain points and problems that could be solved.

Validated pain points: Identify existing market problems that have been validated.

Being aware of a validated company or pain point in the market.

Ex. you have insights as an industry expert on what needs to be fixed/optimized

Customer research: Engage potential customers or industry experts to understand their problems.

gaging with potential customers or industry experts to understand their problems.

Go out and talk to your ICPs

Technology inspiration: Explore cool technologies and find suitable applications for them.

Through VC Research: Another great idea is to search up major incubators and VCs because some of them have listed out exactly what kinds of things they are seeking to invest in. If you create something that falls into these categories, you are already a step ahead!

Y combinator (YC) Accelerator tells you exactly what they will fund people for (dropbox, Airbnb) - if they say they will invest in these types of things then they know there is something there!

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https://www.ycombinator.com/rfs⁠

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5.Aligning Your Idea with Your Passion

Reflect on what you are passionate about and align your idea with your interests.

Building a startup requires dedication and persistence.

6.Validation and Business Viability

Verbal confirmation from potential customers is crucial; they must express willingness to pay.

Avoid building a product that won't generate revenue.

Ensure market demand and customer willingness to invest.

Avoid building a charity! Make something people are willing to pay for!

You need to deeply understand the problem you are solving - and even if you have the simplest and easiest not pretty solution to the problem - it is still solving the problem!

Secure some form of capital commitment before starting the work to set yourself up for success.

A Verbal or Written LOI (Letter of Intent) is a great start! You don’t need to show they have already paid you, just that they are willing to pay you for your solution!

7.Flexibility in the Final Product

Prioritize effective problem-solving over visual appeal.

The final product may differ significantly from your initial vision, and that's okay.

Focus on solving the problem effectively, even if the solution is simple or not aesthetically pleasing.

Embrace feedback and iterate on your solution.

Adapt your product based on customer needs and market dynamics.

8. B2B vs. B2C

Consider whether your target market is Business-to-Business (B2B) or Business-to-Consumer (B2C).

B2B: Sell to businesses willing to pay for SaaS solutions.

B2B often offers clearer problems, higher ticket offers, and easier optimization.

Clearer and more expensive problems to solve.

Potential for optimized marketing strategies through field experts.

Businesses often have a much higher available budget than consumers.

B2C: Focus is on individual consumers.

B2C may involve freemium models and can be more challenging to monetize.

Freemium model followed by paid subscriptions can be a challenge.

Challenging marketing efforts and building a large user base.

Individuals usually have a much small budget than businesses.

9. You MUST Get at least ONE customer

Even acquiring a single customer or verbal formal Letter of Intent (LOI) significantly improves your chances of securing funding.

You MUST HAVE at least ONE customer! That is the very minimum!

Aim to secure at least one customer, even if more is preferable.

Having a customers drastically improves your chances of obtaining funding from VCs.

10.Creating a Timeline

Set an end goal, such as quitting your job to work full-time on your startup.

Develop a timeline with the ultimate goal of quitting your job and working on your startup full-time.

Set two soft deadlines to reach specific milestones along the way.

Establish realistic deadlines:

Deadline 1: Achieve your goal as quickly as possible.

Deadline 2: A fallback option if the first deadline is missed.

Reverse engineer the timeline based on those milestones to plan your progress.

11.Managing Expectations

Clarify your motivations and expectations for starting the AI startup.

Determine your desired level of success and impact.

Determine if you aim to become a unicorn or if your goal is to create a sustainable business.

A Unicorn example is AirBnB or Amazon. Creating something like this would take a lot more time, effort, energy, and money. The goal is something much greater than just being able to quit your job.

But there are plenty of smaller companies that are very successful in what they do even if they are not known by the entire world. This would require less than building a unicorn, and you would be able to exit the market faster and move onto the next thing you would like in your life.

Remember that you are running your own race, and competition in the market is not exhaustive due to the lag in adoption.

Differentiate yourself in the market, understand how you want to compete, and target specific customer segments to compete effectively.

Action Items

Write down and envision your startup idea, go beyond just an abstract concept. Think about the problem you are solving, potential customers, and the value proposition. Fill in the chart below with your ideas. You may also consider using the bonus idea list or ChatGPT Idea Generation prompt to help you if you get stuck.

1. Idea List⁠

2. ChatGPT Prompts⁠

Conduct Market Research to identify gaps, competition, and trends in your target industry. Analyze customer needs, pain points, and potential market size to refine your startup idea. Add these in to the ideas in your chart!

My AI Startup Ideas