Helpful thing to understand for startups:
problem vs product risk
problem risk = is it really a problem? ex: do we really need tinder for dogs?
product risk = people obviously want this, but does it actually work? ex: biz pays you to bring in more customers, can you rly do it
this is common in a lot of early entrepreneurs (i also did this)
where you make up some product like "of course every restaurant wants more customers! they will gladly sign up for our rewards program!"
then u get a bunch of signups and celebrate
but then it doesnt do the thing
a bunch of customers signed up, but they aren't satisfied
why?
your product doesn't actually do what you said it does
the hard part wasn't the problem
your problem statement might as well be "do people want more money"
yes, of course
but can you actually provide that?
probably not
it's really hard to just magically give people money
or get people more customers
a lot of ML/AI startups fall under this as well
can you actually predict what you want to, if not whole biz fails
but if you can just "ml to predict the stock market", ur rich now
product risk also changes how you think about validation
you don't need to validate that people want money
obviously people want money
you need to validate if you can actually give money to them profitably
you need to validate if your ML model WORKS
not if the market wantsit
also a lot of courses have this problem
"become a bajillionaire by taking my twitter course"
Rox
@RoxCodes
Built tools for @MrBeast, now I build software with creators Creator of ThumbnailTest.com (acquired) Currently: buildin a video-first podcast hosting platform
