Let's analyze a startup idea together.

FIRST TRY:

If we ask the AI the most simple version of this: 👉️ I want to make sunglasses

This is the advice we receive…

You can see the AI is giving general advice about the sunglasses market.

And, the AI wants you to think through the competition, the demand, cost of materials and how to reach your target market. It’s all very general advice for day one of thinking through your idea. This gives you some action items that we listed above — but it’s mainly talking about the market you want to enter, and nothing specific about your idea.

SECOND TRY:

If we ask the AI this basic question: 👉️ I want to sell sunglasses

Now we receive this advice:

Again, the AI gives general information to consider when selling sunglasses: The market for sunglasses is competitive, sales are usually seasonal and margins might be slim.

Additionally, the AI gives good advice about finding a specific target market, understanding the needs of customers and to coming up with a unique value proposition — do something that others can’t replicate.

Let’s take that advice and add something more to the AI prompt…

THIRD TRY:

Now, let’s ask the AI: 👉️ I want to make sunglasses out of carbon fiber and sell them

Let’s see the advice this time:

This is better. Of course, you need to find a supplier of raw materials and you need to make sure the sunglasses meet quality standards. But now, the feedback is better, and it’s more tailored to carbon fiber sunglasses (which is the unique value proposition that we came up with, which is what the AI asked for).

➡️ Can you explain why this value proposition (carbon fiber sunglasses) is better?
➡️ Have you done any research on this — do you have experience in this field — to be sure the carbon fiber sunglasses are in demand?
➡️ Who is your target market?
➡️ How will you reach them?
etc.

This is more detailed feedback and it gives you great action items to start on.

Now you have a roadmap to follow:

1️⃣ Explain why your value proposition is better than existing options. Maybe come up with an elevator pitch — we’ll cover this in the next newsletter!
2️⃣ Make sure there is demand for this. Go talk to customers and find out!
3️⃣ Determine your target customer. Who is it? Why? Go visit them and give your elevator pitch!
4️⃣ Be sure you can reach these customers. Distribution! Do you have a repeatable process to reach them?

This outline, above, is exactly what you should be finding out on day one!

FOURTH TRY:

Finally, more specific: 👉️ I want to make sunglasses out of carbon fiber and sell them on the streets in LA to construction workers

So we have a target audience (construction workers) and a plan of where to sell them (on the streets in LA).

Let’s see what the AI thinks:

Ok, so we’ve set a target market of construction workers and we’ll reach them (distribution) by selling on the streets of LA.

The AI gives you more to consider:

👉️ Your expensive carbon fiber sunglasses might not resonate with this audience (construction workers). They might be cost conscious and want cheaper options. Find out! Ask them.
👉️ Competition might be fierce - there may be other sunglasses vendors on the streets in LA.
👉️ It might be difficult to manufacture these, be sure it’s doable!

And, consider this:

1️⃣ Again, research this market (sunglasses) and make sure there is demand for your unique item. Go talk to people and find out!
2️⃣  If your target market does NOT want your carbon fiber sunglasses, find another target market OR find out what your target market actually wants!
3️⃣ Finally, determine how you will market your product. Yes, you’re selling on the street, but how will you reach your specific target market (construction workers). How will they find you?

This is the perfect day one startup method:

Research your target market. Go talk to them. That’s always first.

Assess the competition.

Come up with a way to stand out (your unique value proposition).

Make sure you can manufacture these, once you are sure there is demand.

If your target market doesn’t want what you’re offering, find out what they do want.

Distribution. How will you reach your target market in a repeatable way? How will they find you?

This is all you need to get started!