Finding a product for my ISV - what I wish I’d known

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Choosing a market - It’s one of the hardest things I’ve ever done.

This article will lay out some of the things I wish I’d known from the beginning. And there’s a cool PDF worksheet to help you analyze the markets you’re interested in.

IDEAS AREN’T THE PROBLEM

“Source control for designers!”, “Project management tools for photographers!”, “Inventory systems for cabinetmakers!”

Ideas aren’t the problem.

The problem is knowing which idea could make a viable business.

You can’t do it with your gut. Because if you’re anything like me, every idea I have is pure genius. Or at least that’s what my gut tells me.

What we need is a framework to separate good ideas from the bad. So let me introduce my BIG IDEA:

Being able to succeed as a startup is all about amplification.

I don’t know about you, but I don’t have the resources to create a market where none exists. I can’t afford to do on-site demos, or hire a salesman.

What I can do is choose a market where my actions and words pack the biggest punch with the least effort.

HOW TO RECOGNIZE AN AMPLIFIED MARKET:

1. An active market: Lots of competition, but no single dominant company.
2. A talkative market: Lots of blogs and forums, but not saturated with your competition’s messages.
3. An iterative market: Multiple purchases are the norm.
4. A need-driven market: Your product is required, not merely desired.
5. A big market: Lots of potential customers who fit specific criteria.

THE HORROR SHOW:

Now that we have our criteria, let me share a few of the (many) product ideas I considered and ultimately rejected.

• Version control for non-technical people. God what a mess - I even coded this and had it ready for release before I realized that only technical people know what version control is.
• Property management software for small landlords. I spent 3 months researching this market. Even made some UI mock-ups. It’s big, but it’s really not too chatty. Plus, most landlords with < 50 units really don’t need or want any software other than Quickbooks and maybe excel.
• Project management software for architects. I have some experience working with Architects, and I know that they could really use some help here. Because, there aren’t very many PM tools for architects. The only problem is that there are only 25,000 architectural firms with more than on employee. And worse, Architects tend to be very resistant to change.

REDEMPTION!

Ultimately, finding the right market is a process of making a big list and crossing off the duds until you get a live one!

My product is a tool for online businesses to create real relationships with their customers through live chat, click-to-call and email. (I’ll be positing screen shots and progress updates often)

Live chat is a great fit for me, but I have to give a big thanks to Ian Landsman. If it wasn’t for him and his great blog, it might never have made my list.

PARTY FAVORS ARE FUN:

As promised - I’m making my market-analysis worksheet available as a PDF. If you find it useful, let me know!

Download the Market Analysis Worksheet

RESOURCES:

Eric Sink’s article on choosing a product

Ian Landsman’s article on choosing a product