Understanding what makes entrepreneurial opportunities attractive.
Key Quote
"Make what you can sell, don't just try to sell what you can make." - Jose Astable
Lesson: Identify what people want to buy, then make that.
Evaluating Opportunities
Two key questions:
Is there customer demand?
Can you generate profits?
Two approaches:
Predictive / Forecasting
Evaluate the context using research to predict success.
Learning-based / Experimentation
Conduct experiments to adjust and improve outcomes.
Market Research
Tool Recommendation: Google Trends
Helps identify popular search trends, indicating market interest.
Example: Deciding between ramen noodles, soba noodles, or pho noodles for a new restaurant.
Analyze trends in a specific location, e.g., United States, then more specific areas like Texas.
Lean Startup Framework
Concept: Build-Measure-Learn
Create a minimum viable product (MVP), gather feedback, and iterate based on customer input.
Key Idea: Accept that your initial idea may be wrong, and be ready to pivot.
Visualization: Start with a basic version of your product (e.g., a plain donut) and iterate towards customer preferences (e.g., chocolate donut with sprinkles).
Failure: View failure as a learning opportunity.
Prototyping and Testing
Example Activity: Design experiments to test customer demand for a product like a noodle restaurant.
Goal: Find cheap, quick ways to present your product to potential customers.
Case Study: Tesla
Method: Pre-launch products with events and pre-order systems.
Example: Cybertruck launch learned about product durability.
Lesson: Use customer interaction to guide product development.
Conclusion
Understanding and leveraging customer demand is crucial.
Next focus: understanding profitability of opportunities.