A systematic approach to identifying the best startup opportunities. Rather than relying upon luck or inspiration to make an important decision about what you will spend the next several years building, it is important to define a more systematic approach of discovering opportunity (read our philosophy).
2. We’ve developed a method for systematically discovering startup opportunities by leveraging the
Business Model Archetypes model and the 6 Market Dynamics to identify ideas and objectively
evaluate them. These tools are available for free use at SmarterStartup.org
OPPORTUNITY DISCOVERY
Opportunity Discovery Framework
Opportunity Ideation
-
Opportunity Evalaution
+ =
Vision Definition
Finance
Title
_______________________
___________
Date
_________
__
Customer Value Competition
Product Team
LEAN
Trade
Product
Service
Business Model
Archetypes
6 Market
Dynamics
Ideation Evaluation Definition Validation
primary function
perceivedvalue
Value Creation
Plane
6
3. Opportunity Discovery Framework
Identify an applied business
concept for every archetype
personality, across all of the
vertical markets you are
considering.
After choosing an idea, define
the specifics of your proposed
startup, the value you create,
and how you’ll position within
the market.
Grade each of the ideas
you’ve identified in the
ideation matrix, based on the
six market dynamics.
Using Lean principles, seek
customer feedback to
validate your assumptions
and identify improvements.
OPPORTUNITY DISCOVERY
Idea Idea
Idea
Business Model Archetypes
VerticalMarkets
A B+ F
A
A-
Scorecard Criteria
BusinessIdeas
+ =
Startup Vision
Channels
Title
___________________________
_______
Date
___________Customer Value Competition
Solution Finance
Ideation Matrx Evaluation Matrix
Iterative
Validation
LEAN
Startup Vision Definition
4. Take a systematic approach to
identifying all the possible
opportunities. You will identify a
startup idea for every business model
archetype, for each business vertical
you are considering. Once you have
done this, you can begin to evaluate
these ideas.
Ideation Matrix
Idea #1 Idea #2 Idea #3
Idea #4 Idea #5 Idea #6
Idea #7 Idea #8 Idea #9
Business Model ArchetypesVerticalMarkets
STEP BY STEP PROCESS
5. IDEATION MATRIX
Create a matrix with the business model archetypes across the x-axis, and vertical market
segments you’re interested in exploring on the y-axis. Cancel out any business model archetypes
you already know aren’t a good fit for your team.
Identifying Opportunity
Product Service Trade Subscrip2on Marketplace Brokerage Ecosystem
Real
Estate
Agents
Real
Estate
Brokers
Property
Managers
Can’t
Start
Here!
Don’t
Possess
Trade
Func9onal
skills
6. IDEATION MATRIX
With the inappropriate archetypes now removed, develop an idea for each market actor
you’re considering, across each of the business model archetypes. Fill them into the grid.
Simplified Ideation Matrix
Product Service Subscrip2on Marketplace Brokerage
Real
Estate
Agents
Real
Estate
Brokers
Property
Managers
IDX
Wordpress
Theme
Marke9ng
CRM
Property
Search
Site
Virtual
Assistant
Lead
Genera9on
7. Opportunity Discovery Framework
OPPORTUNITY DISCOVERY
Idea Idea
Idea
Business Model Archetypes
VerticalMarkets
A B+ F
A
A-
Scorecard Criteria
BusinessIdeas
+ =
Startup Vision
Channels
Title
___________________________
_______
Date
___________Customer Value Competition
Solution Finance
Ideation Matrx Evaluation Matrix
Iterative
Validation
LEAN
Startup Vision Definition
Identify an applied business
concept for every archetype
personality, across all of the
vertical markets you are
considering.
After choosing an idea, define
the specifics of your proposed
startup, the value you create,
and how you’ll position within
the market.
Grade each of the ideas
you’ve identified in the
ideation matrix, based on the
six market dynamics.
Using Lean principles, seek
customer feedback to
validate your assumptions
and identify improvements.
8. Next, take all of the ideas we
generated in the ideation matrix and
grade them, considering the 6 Market
Dynamics. This will provide an easy
point of comparison of strengths and
weaknesses of the opportunities being
considered and facilitate a decision.
STEP BY STEP PROCESS
Evaluation Matrix
A B+ F
A
A-
Scorecard Criteria
BusinessIdeas
9. EVALUATION MATRIX
Score Your Ideas
Customer
Product
Timing
Compe22on
Finance
Team
Overall
IDX
WordPress
Theme C
B
B
B
A
A
Virtual
Assistant
Marke2ng
CRM
Property
Search
Site
Lead
Genera2on
Now we’ll evaluate each idea against each of 6 market dynamics. We’ll be able to see relative
strengths and weaknesses and will give a final overall score accordingly.
10. EVALUATION MATRIX
Score Your Ideas
Customer
Product
Timing
Compe22on
Finance
Team
Overall
IDX
WordPress
Theme C
B
B
B
A
A
B+
Virtual
Assistant
Marke2ng
CRM
Property
Search
Site
Lead
Genera2on
Now we’ll evaluate each idea against each of 6 market dynamics. We’ll be able to see relative
strengths and weaknesses and will give a final overall score accordingly.
11. EVALUATION MATRIX
Score Your Ideas
Customer
Product
Timing
Compe22on
Finance
Team
Overall
IDX
WordPress
Theme C
B
B
B
A
A
B+
Virtual
Assistant C
C
B
B
C
C
C+
Marke2ng
CRM C
C
D
D
C
A
C-‐
Property
Search
Site C
A
D
F
D
A
D+
Lead
Genera2on C
A
B
B
B
B
B
Now we’ll evaluate each idea against each of 6 market dynamics. We’ll be able to see relative
strengths and weaknesses and will give a final overall score accordingly.
12. Now we’ll evaluate each idea against each of 6 market dynamics. We’ll be able to see relative
strengths and weaknesses and will give a final overall score accordingly.
EVALUATION MATRIX
Score Your Ideas
Customer
Product
Timing
Compe22on
Finance
Team
Overall
IDX
WordPress
Theme C
B
B
B
A
A
B+
Virtual
Assistant C
C
B
B
C
C
C+
Marke2ng
CRM C
C
D
D
C
A
C-‐
Property
Search
Site C
A
D
F
D
A
D+
Lead
Genera2on C
A
B
B
B
B
B
Think
twice
about
any
idea
that
earns
only
a
D
or
F
–
this
may
mean
its
non-‐viable.
WARNING!
13. EVALUATION MATRIX
Score Your Ideas
Customer
Product
Timing
Compe22on
Finance
Team
Overall
IDX
WordPress
Theme C
B
B
B
A
A
B+
Virtual
Assistant C
C
B
B
C
C
C+
Marke2ng
CRM C
C
D
D
C
A
C-‐
Property
Search
Site C
A
D
F
D
A
D+
Lead
Genera2on C
A
B
B
B
B
B
Two
ideas
that
pass
the
test.
You
could
choose
one
of
these
or
keep
searching.
CONGRATULATIONS!
14. IDX WordPress Themes
IDEA #1
EVALUATION MATRIX
Selecting an Idea
Lead Generation Broker
IDEA #2
A B+ F
A
A-
Scorecard Criteria
BusinessIdeas
In the final analysis, there are two ideas from our original pool that appear to be most viable. They
have the best overall score and also do not have a particular challenge on any single criteria.
15. Opportunity Discovery Framework
OPPORTUNITY DISCOVERY
Idea Idea
Idea
Business Model Archetypes
VerticalMarkets
A B+ F
A
A-
Scorecard Criteria
BusinessIdeas
+ =
Startup Vision
Channels
Title
___________________________
_______
Date
___________Customer Value Competition
Solution Finance
Ideation Matrx Evaluation Matrix
Iterative
Validation
LEAN
Startup Vision Definition
Identify an applied business
concept for every archetype
personality, across all of the
vertical markets you are
considering.
After choosing an idea, define
the specifics of your proposed
startup, the value you create,
and how you’ll position within
the market.
Grade each of the ideas
you’ve identified in the
ideation matrix, based on the
six market dynamics.
Using Lean principles, seek
customer feedback to
validate your assumptions
and identify improvements.
16. Mark Twain
Author
VISION DEFINITION
Clarity of Vision
I didn't have time to write a short
letter, so I wrote a long one instead.
A concise statement about a complex topic requires an investment of time and the
clarity of thought. That critical analysis can reveal weaknesses in a plan, before you
begin developing it. Its time to do this for your new startup.
17. Provide a concise answer to
each question on the worksheet.
Keep them as short as possible.
Then compose a 3-4 sentence
elevator pitch that includes as
many of the key answers as
possible. Then you’ll be ready to
talk to prospects!
Defining a
Startup Vision
VISION DEFINITION
18. Successful Real Estate agents,
earning $100k / year
1. Phone sales & webinars
2. Conferences
Marketing Automation CRM
Software Product
WordPress Theme *Product*
(not SaaS) for the DIY agent
Tech disruption. First mover
(the Spark API for IDX)
1. Me (product/tech)
2. John (BizDev/Sales)
1. Spark Platorm API
2. Access to all MLS IDX Feeds
$50,000 to build core product
$50,000 line of credit
IDX Website/CRM software for serious RE agents to capture & nurture online leads and
grow their business. Built on Wordpress so they can"own the system, not rent". First-mover advantage by
integratingthe Spark IDX API which makes it possible.
Real Estate IDX WordPress Themes May 9
IDX System to capture &
nurture online leads
1. Own don't Rent (your website)
2. Beautiful original design
19. Opportunity Discovery Framework
OPPORTUNITY DISCOVERY
Idea Idea
Idea
Business Model Archetypes
VerticalMarkets
A B+ F
A
A-
Scorecard Criteria
BusinessIdeas
+ =
Ideation Matrx Evaluation Matrix
Iterative
Validation
LEAN
Startup Vision
Channels
Title
___________________________
_______
Date
___________Customer Value Competition
Solution Finance
Startup Vision Definition
Identify an applied business
concept for every archetype
personality, across all of the
vertical markets you are
considering.
After choosing an idea, define
the specifics of your proposed
startup, the value you create,
and how you’ll position within
the market.
Grade each of the ideas
you’ve identified in the
ideation matrix, based on the
six market dynamics.
Using Lean principles, seek
customer feedback to
validate your assumptions
and identify improvements.
20. Test Your Hypothesis
With a well-articulated startup vision
ready, you can begin sharing the
concept with investors and customer
prospects. If the idea is well received,
advance to vapor-ware test campaigns
and finally to building the “MVP”.
Lean Methodology
Lean Market Validation
PROSPECT INTERVIEWS
Do They Like the Idea? Feedback?
TEST MARKETING
Do Test Campaigns Convert?
MINIMAL VIABLE PRODUCT
Users Engaging & Using Product?
21. THE SMARTER STARTUP
STRATEGY FOR STARTUPS
The Smarter Startup looks at why some startups
succeed while others fail. By taking a more
strategic approach to entrepreneurship, founders
can improve their own outcomes. Written by Neal
Cabage and Sonya Zhang, PhD, and published
by Pearsons/NewRiders.
SMARTER STARTUP
The Book
22. SMARTER STARTUP
SmarterStartup.org
The framework, including the part
described here, are posted on the
website, along with downloadable
worksheets and reference material.
Everything is free to use, so enjoy!.
www.SmarterStartup.org