How should I start thinking about a startup idea?

Instead of focusing on ideas, start by identifying problems. Ask yourself if you have a personal connection to the problem, as this personal stake can provide motivation and insight.

What makes a problem worth pursuing for a startup?

A problem is worth pursuing if you have a personal connection to it, or if it's a significant issue for your friends, family, work, or community. This connection helps in validating solutions and persevering through challenges.

How do I know if I'm the right person to solve a problem?

Consider if you have a unique perspective, understanding, or personal experience related to the problem that others might not have. It's also helpful to research how others have tried to solve it before.

What is the purpose of an MVP?

An MVP, or Minimum Viable Product, is the first version of your solution released to users. Its main purpose is not to be perfect, but to help you learn whether the problem is solvable and how to best address it with users.

Should I be attached to my initial product idea?

No, you should not be overly attached to your initial product. Be in love with the problem and the customer, and treat your product as something that can change and improve based on feedback.

Who should be my first users?

Your initial users should be carefully selected and hand-picked. They should be people for whom the problem you're solving is significant and who are willing to try a new startup solution.

Key Moments

How to Get and Test Startup Ideas - Michael Seibel

Y Combinator

Science & Technology4 min read7 min video

Apr 4, 2019|348,018 views|11,622|174

YC Y Combinator Michael Seibel How to Get and Test Startup Ideas How to Get Startup Ideas How to Test Startup Ideas Video essay Startup ideas MVP Minimum Viable Product

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Key Moments

TL;DR

Startup ideas don't need to be great initially; focus on problems you have a personal connection to, build a quick MVP, and carefully select early users to learn if the problem is solvable.

Key Insights

Justin.tv (now Twitch) started with an original idea of an online reality TV show, which evolved significantly into its current live video streaming format.

When evaluating a problem, ask if you, your friends, family, or colleagues personally experience it, which provides validation and resilience.

Brainstorming startup ideas with potential co-founders during the problem identification phase is advised for assessing team synergy.

Beyond classical experience, assess your unique angle or perspective on a problem that others might not possess.

An MVP should be released quickly (days or weeks) and is primarily a learning tool, not a finished product, to validate problem solvability.

Initial users should be hand-picked, as they must be willing to try a startup solution and consider the problem genuinely important.

Discard the notion of a "great" initial startup idea

Michael Seibel, CEO of Y Combinator, debunks the common misconception that a startup needs a brilliant idea from the outset. He uses the example of Justin.tv, the precursor to Twitch, which began as an online reality TV show. This idea drastically evolved into a live video streaming platform for gamers and chat users, eventually selling for nearly a billion dollars. Seibel emphasizes that the initial concept is less important than the process of iteration and problem-solving. Falling in love with the initial idea can be a pitfall, whereas remaining flexible and adaptable to evolving user needs and market feedback is crucial for long-term success. This perspective shifts the focus from idea generation to diligent execution and learning.

Prioritize problems over solutions

Instead of brainstorming abstract ideas, Seibel recommends starting with a problem. This approach makes it easier to evaluate the significance of the issue. A key criterion is personal connection: does the problem affect you, your friends, your family, or your work? Having a personal stake in the problem offers two significant advantages. Firstly, it provides an intuitive sense of whether potential solutions are even in the right ballpark. Secondly, during inevitable periods of discouragement when early solutions aren't working, this personal connection can provide the motivation needed to persevere until a viable solution is found. Seibel suggests keeping a 'problem book' to log daily encountered issues or those frequently mentioned by others, rather than an 'idea book.'

Leverage brainstorming with potential co-founders

The process of identifying and discussing problems is also an ideal time to scout for co-founders. Seibel advises actively brainstorming with friends you might consider building a startup with. These collaborative sessions allow you to gauge compatibility in idea generation and communication. Observing how you and your friends elaborate on a problem, exchange ideas, and build upon each other's thoughts can reveal strong potential for working together. This active partnership during the early ideation phase can forge stronger bonds and a more cohesive founding team, laying a solid foundation for the challenges ahead.

Assess your unique qualification for the problem

Once an interesting problem is identified, the next critical question is: "Why are *you* uniquely qualified to solve this?" This qualification isn't necessarily about traditional credentials or extensive experience, but rather about having a distinctive angle. Do you possess a unique understanding of the problem, a novel way of attacking it, a special perspective, or a personal experience that others lack or overlook? Analyzing previous attempts to solve the same problem, including failed products, is also essential. Understanding what others deemed their 'unique insight' helps validate or differentiate your own approach. This self-assessment serves as a crucial gut check to ensure alignment between your capabilities and the problem you aim to solve.

Build and release a Minimum Viable Product (MVP) quickly

The next step involves developing a Minimum Viable Product (MVP)—the first version of your solution that will be released to users. Seibel’s core advice regarding the MVP is to "don't fall in love with it." He stresses that MVPs are unlikely to perfectly solve the problem and often serve as the initial stage in a broader learning process to determine if the problem is even solvable. Many founders become overly attached to their product, neglecting their problem or customer. The opposite approach is advocated: be passionate about the problem and the customer, and treat the product as something that can and should evolve. Releasing the MVP rapidly, ideally within days or weeks, is paramount. It may not be polished or something to be immediately proud of, but it's the quickest way to start gathering feedback and learning.

Critically select your initial user base

A crucial but often overlooked aspect of the MVP phase is the selection of initial users. Seibel strongly believes that these early adopters should almost be "hand-picked." You must have a very clear opinion about who your ideal initial customer is. Furthermore, these individuals should be willing to experiment with a startup solution, and the problem you're addressing must be genuinely important to them. The primary goal of the MVP is not to achieve mass adoption or user counts, but to determine if, for *any* group of people, your solution actually solves their problem effectively. Startups that excel often rigorously filter potential users to ensure they are the right fit for validating the core problem-solution hypothesis.

Mentioned in This Episode

●Companies

Startup Idea Development Flow

Practical takeaways from this episode

Do This

Start with a problem you or someone you know personally experiences.

Keep a 'problem book' and note down daily challenges.

Brainstorm problems with potential co-founders.

Assess your unique qualifications and perspective on the problem.

Examine past solutions and failures for the problem.

Build your MVP quickly and don't fall in love with it.

Focus on solving the problem, not just building the product.

Hand-pick initial users who truly need the solution.

Filter users to ensure they are the right type of customer.

Avoid This

Don't believe your initial idea has to be great.

Don't grade your idea; focus on grading the problem.

Don't get discouraged if initial solutions don't work.

Don't fall in love with your product; be in love with the problem.

Don't expect your MVP to solve the problem perfectly.

Don't release your MVP too late.

Don't try to solve the problem for users who don't deeply need it.

Don't aim to see how many people want your product with the MVP; aim to see if it solves the problem for anyone.

Common Questions

No, Michael Seibel emphasizes that a great initial idea is not necessary. The focus should be on identifying and solving a problem, which can evolve into a successful company, as demonstrated by the evolution of Justin.tv into Twitch.