Last week, I caught up with a very successful local entrepreneur. While I knew parts of his story, I hadn’t yet heard the origin of his idea. With enthusiasm, he shared the moment that sparked it all: a use case in the internet communications world that was becoming increasingly common but was incredibly cumbersome and tedious. That lightbulb moment led him to create a startup around a new human-centered process that eliminated friction and increased distribution, making the process super efficient.

This story isn’t about the specifics of his idea but the value it delivered to customers. Too often, entrepreneurs chase shiny new technology or ideas that are only marginally better than existing alternatives. When hearing a new idea, consider these key questions:

1. Is this solution ten times better than the alternative? Many new products offer only a 10% improvement, which the market often ignores. True success comes when a product addresses a real need and is exponentially better.
2. Can this only be achieved with new technology? Too often, entrepreneurs build products whose output could still be produced manually or outsourced to a junior employee or AI. The best innovations are those that are impossible without specialized software, enabling what was previously unachievable.
3. What are the growth prospects for this market? The most promising markets may be small today but are growing rapidly. Look five to seven years ahead and assess whether the market will become large and significant.

I love hearing founders’ origin stories, and this one was exceptional. Entrepreneurs would benefit from reflecting on these three questions about product value, innovation, and market timing to guide their ventures toward success.