Ask HN: How to Identify a Need in the Market?

https://startfromzero.com "Where Entrepreneurs Get Their Start When They Have No Ideas..."

Dane Maxwell teaches/uses a concept called Idea Extraction:

1. Pick a niche.

2. Contact that niche and let them tell you the pains worth solving.

Idea Extraction is a form of market research, which is important to ensure you don't build something no one wants to buy.

However, I would argue marketing/sales is more important than the idea itself. You can make money selling products/services that already exist; no need to build something new!

For example, one common mistake is to start marketing after your product is completed; you should start marketing even before you begin development!

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Amy Hoy teaches a similar concept, which she calls "Sales Safari:" https://shop.stackingthebricks.com/sales-safari-101

(Also take a look at the full course: https://30x500.com)

Venn diagram it out. You have your own skills, needs and inclinations. And then other people have theirs. Look for a clear, coherent overlap with a market and build the pitch from that. Validate occasionally that you understand the market you're addressing and not building something redundant or handled within their existing skillsets(or, that you are tapping an outsider market that doesn't need that skillset).

At scale, if you're looking for a big paycheck, what you want to put in the diagram is "nation building" - something that furthers the kinds of goals that governments or the powerful people behind them will pay for. A lot of things that build nations seem like they have to cost a lot and involve lots of capital, but that simultaneously indicates a place for technology to disrupt the dependencies involved, usually by automating, and usually by automating a higher level of quality, not speed or quantity. It's hard to get any right answers, easy to get wrong ones quickly.

If this is how you’re thinking about the world you should absolutely not become an entrepreneur. Let’s say you happen upon a real problem. How are you going to solve it? “With technology?”

IMO trying to sell a new idea has quite low chances of being successful. There could be hundreds who've tried bringing this specific idea to market, but nobody ever heard about them because the idea went belly up.

On the other hand, there are already plenty of established markets with a healthy amount of competition. A plumber doesn't have to worry about coming up with new ideas. Neither does someone creating and maintaining websites for restaurants. Or ERP consultants. Or process automation engineers.

>I'm planning to venture out on my own but I simply don't understand what to build.

Then keep planning until you have so many possibilities that you would never be able to accomplish it all.

After that the difficult part will be if you can pick only one of the promising things you know are great, and put major effort in that single direction.

My suggestion is to think deeply about problems that you yourself have encountered as an initial source of ideas. Of ten technical people are so good at problem solving that we just solve it, move on and forget about it. However, these problems might be more common or more pervasive than we might think.

Don't start with the solution, start with a problem. Define it, explore, and identify pain points, how is the problem solved right now? What can be made better?

Don't start building until you understand what problem are you solving.

It's easier said than done, that's why so many businesses fail.

You have to find a problem, then talk to potential customers to validate that problem. Then you find/build a solution.

A great book on the subject: https://www.momtestbook.com/

solve a problem you have yourself. Chances are that other people have the same problem. The good thing about solving your own problem is that you know when it solved. This might not be the case if you try to solve someone elses problem instead

You can only do it from what you observe and know about. Either start from where you are or find out about stuff you don't yet know, ideally excluding current trends.

What market? Too vague.

Generally you either need deep expertise in some business domain, or you have an idea that you think other people will benefit from.

If you're trying to make money, just make useless shit that panders to whatever is the venture capitalists' golden goose of the year, rather than anything the market actually needs. You missed blockchains, but you're just in time to proxy user requests to an OpenAI API after wrapping it in a paragraph that boils down to "do what I told my customers my service does"