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Business frameworks

Frameworks for building new businesses.

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Recent funding rounds

Analyze companies that have recently secured significant investment, identifying trends and opportunities in emerging markets or technologies.

Unbundling

Breaking down a bundled product or service into separate, standalone offerings, often to target specific customer segments more effectively or to compete with established players.

Industry timing arbitrage

Apply newly developed technology from one industry to another that hasn't yet adopted similar technology, capitalizing on the timing difference.

Acqui-deaths

Identify opportunities created when large companies acquire startups, potentially leading to a loss of innovation or focus in the acquired company's original product or service.

Three-star reviews

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Find business opportunities by analyzing moderately satisfied customers' feedback (typically 3-star reviews) to identify common pain points or areas for improvement in existing products or services.

Niche down

Focus on a highly specific market segment or customer base, becoming a specialist in that area to differentiate from broader competitors and build a loyal customer base.

Disruptive innovation

Start with a big market that's ripe for disruption. Look for industries where customers are underserved or overcharged. Then, build something that's initially worse but cheaper or more accessible. The incumbents will ignore you until it's too late. This is the Y-Combinator Favourite.

Invent a new sport

Create a game that taps into human nature and competitiveness. The best new sports combine familiar elements in novel ways, making them easy to learn but hard to master. Think of how skateboarding merged surfing with urban environments.

Investigate the graveyard

Failure doesn't always mean a bad idea. Sometimes, it's just bad timing or execution. Look for startups that died but had a compelling core concept. With better tech or a changed market, these ideas might now be viable.

Investigate science fiction

The best sci-fi writers are often accidental prophets. They imagine technologies that don't exist yet but solve real problems. Your job is to make those imaginary solutions real.

What won't change

In a world of constant flux, some things remain remarkably stable. These are often fundamental human needs or behaviors. Identify these constants and build solutions around them. Amazon's Jeff Bezos famously said customers will always want lower prices and faster delivery. By focusing on these unchanging desires, you can create enduring value even as technologies and trends evolve.

Build a copycat

Don't be afraid to copy what works, especially across different markets. The key is to execute better or adapt the idea more effectively to a new context. Facebook wasn't the first social network, but it executed the concept better than its predecessors.

Business model arbitrage

Apply an existing business model from one industry to another, capitalizing on the timing difference

Rebrand boring products

Some products are essential but dull. By rebranding them and making them cool, you can capture a huge market. Think about how Warby Parker transformed buying glasses.

One-time payment software

Many users hate recurring payments. If you can offer a comparable product with a one-time fee, you might win over a significant portion of the market.

Democratize luxury

Democratizing luxury or high-end products can open up massive markets. Tesla did this with electric cars, starting with expensive models but always aiming for mass-market affordability.

Build gadget accessories

When a new technology takes off, there's often a gold rush for complementary products. Anticipate these trends and be ready with accessories when the market explodes.

Leverage patent expiry

When patents expire, it opens up opportunities to create improved or cheaper versions of once-protected products. This is common in pharmaceuticals but applies to other industries too.

Premium boring products

Some everyday items are ripe for reinvention. By adding quality, design, and branding, you can transform a commodity into a luxury. Dyson did this with vacuum cleaners.

Find shareable resources

Look for underutilized assets that could be shared more efficiently. Airbnb did this with spare rooms, Uber with personal cars.

Dominate fragmented categories

Some markets are fragmented, with no clear leader. These are opportunities to build a strong brand and consolidate the market. Casper did this with mattresses.

Category creation

The most ambitious startups don't just enter existing markets - they create entirely new ones. This is hard, but the rewards are enormous if you succeed. Airbnb didn't just compete with hotels; it created the home-sharing category.

Build on platforms

The best startups often start as extensions of existing products. Look for popular platforms with unmet user needs. By building these missing features, you can create immense value and potentially become a standalone product.

Be a closer follower

Sometimes, being first isn't the advantage it seems. Let others make the initial mistakes in a new market. Then, swoop in with a better product that addresses the shortcomings of the pioneers. Google wasn't the first search engine, but it was the best.

Simplify research processes

Information is power, but finding it is often a pain. If you can aggregate and simplify complex data, making it easily accessible, you'll have a valuable product. Zillow did this for real estate information.

Build the anti-product

Every dominant product has its critics. Build for them. Create something that's deliberately different from the market leader, addressing their main criticisms. DuckDuckGo did this by offering a privacy-focused alternative to Google.

Sell an identity

People don't just buy products; they buy into ideas of who they want to be. Create a brand that represents a lifestyle or set of values. Patagonia doesn't just sell outdoor gear; it sells environmental consciousness.

Use regulatory changes

Regulations often create new markets overnight. Be ready to capitalize on these changes. Coinbase did this when cryptocurrency regulations started to clarify.

Become compliance expert

Regulations are complex and constantly changing. If you can simplify compliance for others, you'll have a valuable service. Vanta did this for SOC2.

Modernize old products

Sometimes, the most valuable companies are built by simply making existing tools better. Look for popular but outdated software and reimagine it for modern users. Slack did this for workplace communication.

Remove friction

Complexity is the enemy of efficiency. If you can simplify a multi-step process into something quick and easy, you'll have grateful customers. DocuSign did this for document signing.

Revive early solutions

Sometimes, the best solutions are the oldest ones, updated with modern technology. Look at how problems were solved in the early days of an industry for inspiration. Tesla revived interest in electric cars, which were popular at the dawn of the automobile age.

Spot the fringes

The next big thing often starts as a niche hobby. Pay attention to what passionate enthusiasts are building in their spare time. These projects might seem trivial now, but they could be the seeds of the next billion-dollar company. Facebook started as a college networking site.

Solve hidden problems

Some of the best startup ideas solve problems so common that people don't even recognize them as problems. Look for inefficiencies or annoyances that everyone takes for granted. Uber did this with the hassle of hailing taxis.

Rebrand old supplements

Sometimes, old products just need a fresh coat of paint. Look for established products with outdated branding or marketing. By giving them a modern makeover, you can tap into new markets. Ritual did this with vitamins.

Chris Dixon idea maze

The path to success is rarely straight. Anticipate the obstacles, decision points, and potential pivots in your startup journey. The founders who succeed are often those who can navigate this complex maze of possibilities and challenges.

Localise apps

Global products often fail to address local nuances. Take a successful app from one market and adapt it to the specific needs of another. Consider cultural differences, infrastructure limitations, and local regulations. Gojek did this by adapting ride-sharing for Indonesia's unique market.

Status anxiety

People often buy things not just for utility, but to signal their status or belonging to a group. Create products that tap into this desire for social validation. Supreme turned this concept into an art form with their limited-edition drops.

Emerging behaviours

Pay close attention to how younger generations are interacting with technology and each other. These emerging behaviors often signal broader shifts in society. TikTok capitalized on the growing preference for short-form, user-generated content.