I recently talked about a simple framework to begin exploring startup ideas. We also use the following more tactical framework in our Studio to help evaluate and iterate through business ideas. Each step has questions to answer, additional resources to support you, and definitions of attractiveness that you can explore in more detail here.

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We always start with a must-have problem. Then we delve into the market and understand the opportunities in the space. Next, we circle back to deeper customer segmentation and focus to the point where people will pay for a product that doesn’t exist yet. Lastly, we run some basic financial math to ensure that if the business does what we think it can, the numbers make sense.

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Naturally there are learnings at each step that necessitate going back to previous steps and refining our approach. At the end, all of these steps must align to move forward with the idea and go after the big opportunity.