35. A tool for choosing the best business direction and strategy for your startup. Part 1

If you need to choose a problem to solve, identify their customers, and settle on the solution for your startup to bring to market, this video is for you.

This tool can also be useful for thinking about your pivot options if your current direction is failing.

You can read this as a blog at https://ftb.bz/35B

This video explains the first part of the process where you develop a large number of possible business directions, then systematically narrow it down to a few best candidates. In part 2, you will learn how to drill down and analyze those finalists to pick the one business model most likely to succeed.

Download the worksheet for this process here: https://ftb.bz/35-business-plan-worksheet

As you work through this process, you will uncover your optimum business direction.

For each potential path, you will consider the following criteria:

· What is the need, pain, or unfulfilled desire?

· Who needs that, and how would they use it?

· How many people fit that description, and how urgent is their need?

· Your proposed solution

· Why that solution is better than competitors, alternatives, or workarounds

You should be able to do this initial exercise in a day. After that, you will need to do some more research and conduct tests to see if your guesses and assumptions are right. Using this worksheet is a navel-gazing activity, but you can’t navel-gaze all the way to your final destination.

One thing I did not include in the worksheet is your passion. Because startups are all-consuming, make sure whatever direction you consider is something you would love to spend all your time doing for a long time. Don’t write down an option if you are not willing to do that thing at maximum intensity for years.

Digging deeper on your top options

Part 2 of this video covers how to look more closely at your top contenders and pick the one strategy you want to pursue for your business.

A work in progress

I am using this tool with some of my portfolio companies, but it is not as mature as most of my other advice and methodologies. If you try it, please give me feedback about what worked and what you think needs to be adjusted. Thanks!