We take pride in selecting projects that align with our values and expertise. Here are some key factors we consider before diving in:
Domain knowledge
There needs to be someone with extensive expertise in the domain the project is in. The bar should be set high: Within our region of operation, could we represent the top 5% within this subject matter? This is probably where most fail, especially inexperienced builders that jump into a field without deep knowledge of it. There is very little chance of becoming competitive within a domain without that foundation. Are we among the very best in the field of creating task management apps? No? Then move on.
Grey niche
Boring is beautiful. While others chase flashy consumer apps and crowded markets, the real opportunities often hide in unglamorous industries. Competition needs balance. Too much competition means razor thin margins and a constant fight for survival. Too little competition might indicate there is no real market need. The sweet spot is a niche where existing competition proves there is demand, but where there is still room to differentiate and deliver something better. Identify a niche that is small enough to dominate but big enough to sustain meaningful revenue.
Spreadsheets and slow steps
We look for workflows. A workflow is a series of steps that needs to be done, and mostly are already being done in some slow and difficult way. Excel and Google Sheets are the swiss army knife of workflows. If we find a lot of spreadsheets in use, it is a good sign that there is a workflow that can be improved with software and automation.
Willingness to pay
There are lots of ideas out there, and a lot of them are good! But the pain is very often not big enough for people to pay to solve it. Money is tight, for both personal wallets and for companies. A lot of so called papercut problems are just that, papercuts. They hurt, but not enough to make people pay to get rid of them. That is why we focus on industries where software purchases are a natural part of operations and budgets already exist for such tools.
Calculations and automation
Most people do not like thinking about calculations, and simple things like percentages, averages and sums often represent an extra layer of cognitive load. If a project can help with that, it is a good sign. Many of our projects end up involving some kind of calculator service. We also rarely see scheduled timers being used in spreadsheets, even though Excel and Google Sheets are able to fetch data. Automating data retrieval and calculations on a schedule removes manual work and ensures information is always up to date. This is a key deliverable of many of our products, and will continue to be.
Risk arbitrage and a good dose of naivety
Most good ideas have already been discussed and considered by others. Even by people way smarter or with more money than us. And this is maybe the most important thing to clarify before jumping into a project: Where is the risk that we are willing to take, that others are not? What is the thing we can do better or make feasible? Is it time to market? The technical aspect? The domain knowledge? It might be a complex combination. This is the key to success in most cases. Finally, it takes a bit of optimistic naivety to believe that this risk can be handled. Then, when preparation, stamina and a bit of luck come together, we might have a winner.