Successful Ideas

Ideas come from many places. Technology-minded people constantly think of software applications that they can develop. Or maybe a conversation with a local business owner will uncover a need that a new software application can address.

Before you shout, "Eureka," and jump into the development process, there are a few criteria you should consider before you make that step. In general, to have a successful commercial software (desktop, ASP, SaaS, etc.) product, the idea must meet three criteria:

• Immediate Need - There must be a pain/need being experienced that the market needs addressed in the short term. You don't want to hear, "that's a nice idea, maybe we'll look at something like that next year."

• Widespread Need - The pain/need must be experienced by a broad and definable group. It needs to be commonly experienced by more than just the person you are talking to.

• Willingness/Ability to Pay - The market must be willing and able to pay to have this pain resolved; a budget must exist. Again, the person you are talking to may be willing to pay, but does the broader, defined market have the same willingness and ability?

So, when you come across a potential idea for a commercial software product, you need to ask many questions, and research the market, to determine how the idea fits with the above criteria. If the idea only fits one or two of the criteria, you will struggle to make it a success.

If the need is not immediate, the market will always put off the solution. It's not a priority.

If the pain is not widespread, then you don't have enough in your market to be profitable.

Even if the pain is immediate and widespread, if there is no budget available to pay for the solution, then you will obviously not be successful.

Non-Bias Approach

It is common to emotionally latch onto a "good" idea. You may think your idea is the greatest innovation to come along in a while. My advice is to ask yourself, "How many copies of this software do I plan to buy this year?" Your answer will always be "zero."

I like the phrase coined by Steve Johnson of Pragmatic Marketing, Inc.

"Your opinion, though interesting, is irrelevant."

The only opinion that matters is the opinion of your potential customers and the broader market. You must, in an unbiased manner, conduct the needed research to ensure that the idea is commercially viable.

So, go back through all those ideas you have written down on those index cards and ask yourself some honest questions, ask more questions to your potential customers, research the market more, and let the cream float to the top.