4 builders who never spoke to each other
Enter where money is already changing hands
Existing spend in a category is the cheapest proof that the problem is worth solving, so look for buyers already paying somebody, anybody, to make it go away. Categories with no visible transactions ask you to fund the education of the market as well as the build.
The method
- 01
Enter a category where money is already changing hands, since existing spend is proof the problem is worth solving.
- 02
Require hard evidence of demand before building: people currently paying for something comparable, or people burning their own time assembling a workaround in a spreadsheet.
- 03
Require three signals from a candidate opportunity: a strong felt need, evidence they're already spending time or money on it, and dissatisfaction with what they use now.
- 04
Strong demand does not mean a popular category, a crowded one, or copying whatever product is doing well; look instead for proof that people want the thing to exist.
- 05
Check first that people are already paying somebody for a solution, because an unpaid problem is not painful enough to build on.
What it returned
- 2008
When Airbnb launched in 2008 people already paid for hotel rooms, B&Bs, cottages and hostel beds; worldwide spending on travel accommodation runs at $570 billion a year.
Welsh names Reddit, Quora and Facebook groups as the forums to read, and treats people paying to fix a problem as the demand signal.
Craigslist has far more people seeking wedding photographers than magazines seeking artistic photo shoots.
The author's snowboard shop assumed thousands of local snowboarders would shop locally, ignoring that they were happy to drive to the city for more inventory.
Sources
- How I would build a new startup if I had to do it all overJustin Jackson · justinjackson.ca · 3. Find a good market with good fundamentals. · undated
- Entrepreneurial false-positivesJustin Jackson · justinjackson.ca · What to look for in a new business opportunity · undated
- What affects customer motivation?Justin Jackson · justinjackson.ca · How to find motivated customers · undated
- The Hierarchy of Needs for new Product IdeasJustin Jackson · justinjackson.ca · The foundation: evidence of demand · undated
- Why you're not making salesJustin Jackson · justinjackson.ca · You're not connecting with a real need · undated
- Why you should go after a market with strong demandJustin Jackson · justinjackson.ca · The shape of a good opportunity · undated
- Who wants this today?Justin Jackson · justinjackson.ca · How to know if there's demand for your product · undated
- The Counterintuitive Approach to Uncovering Your Profitable NicheJustin Welsh · justinwelsh.me · 1. Start with a Small, Hungry Market · 2024-06-08
- ✨ What Do High-Converting Websites Do That Beautiful Ones Don't? - Trends.vcDerrick Reimer · trends.vc · 🎧 Listen To · 2026-05-13
- How to copy your way to $1MTibo Louis-Lucas · tmaker.io · The framework · 2026-06-25
the second source
Three plays a week, for the phase you are in
No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.
More in positioning
- Do the boring market homework yourself7 unconnected · contested
- Build for a market you already belong to6 unconnected
- Aim everything at the segment you already win6 unconnected
- Narrow the category until you are its only occupant6 unconnected
- Pick the fight the incumbent cannot win6 unconnected
- Pick the market nobody is excited about6 unconnected