Over the last couple of projects that I have worked on I have come to understand product ideas through the product's balance between "product risk" vs "market risk". I wanted to float this concept out to the community for some feedback.
- Product Risky Ideas: Are technically hard to execute on because you need to solve really tough technical questions.
- Market Risky Ideas: Have questions that need to be answered in terms of adoption or distribution.
My belief is that products with high market risk are ideal because you can figure out how to manage the risk through testing or hiring. Whereas, product risk is more challenging to manage since it could take long periods of time before you figure out how to technically solve the problem.
Recently I wrote about this concept and how it is applied to a new project that I am working on: https://medium.com/octavius-labs/understanding-market-vs-product-risk-b0687480f138
I would love your thoughts and criticism.
-How effective do you think it model is to run prospective startup ideas through this model?
- Is there anything I am missing or not thinking about?
- How important is it to have a framework like this to think about ideas?
- Product Risky Ideas: Are technically hard to execute on because you need to solve really tough technical questions.
- Market Risky Ideas: Have questions that need to be answered in terms of adoption or distribution.
My belief is that products with high market risk are ideal because you can figure out how to manage the risk through testing or hiring. Whereas, product risk is more challenging to manage since it could take long periods of time before you figure out how to technically solve the problem.
Recently I wrote about this concept and how it is applied to a new project that I am working on: https://medium.com/octavius-labs/understanding-market-vs-product-risk-b0687480f138
I would love your thoughts and criticism.
-How effective do you think it model is to run prospective startup ideas through this model?
- Is there anything I am missing or not thinking about?
- How important is it to have a framework like this to think about ideas?