Customer Pain
Who is the ideal customer for this product? Clearly define the demographics, behaviors, and preferences of your target audience. For example, are they tech-savvy millennials, busy professionals, or small business owners? Be as specific as possible to ensure you create a solution tailored to their needs. For instance, instead of saying “students,” specify “undergraduate computer science students.” What problem does the product solve for the customer? Identify the pain point your product addresses. Think about frustrations, inefficiencies, or unmet needs your target audience faces. For example, does it save time, simplify a process, or improve outcomes? Where does this problem rank on the customer’s list of "problems they are looking to solve"? It’s critical to address a high-priority issue. If your solution doesn’t align with their top concerns, they are unlikely to adopt it. Conduct interviews, surveys, or market research to understand your customers' priorities.
Product Market Size
How many customers are looking to solve this problem? Estimate the size of your target market. Use data sources such as industry reports, surveys, or government statistics. For instance, “There are 5 million small business owners in the U.S. who might need this product.” Break down the market into segments if needed. For example, “1 million small business owners in the retail industry.” How much are they willing to pay to solve this problem? Consider what your audience currently spends on similar solutions or how valuable solving the problem is to them. What is the addressable market for this product? Multiply the number of potential customers by the price point to calculate the total addressable market (TAM). For example, if 1 million customers are willing to pay $50 annually, your TAM is $50 million.
Product Attributes
Do you have a logo for this product? A logo creates a visual identity and builds brand recognition. [Instruction: Use tools like OpenAI’s DALL-E, Canva, or Adobe Express to generate a logo. Define your product’s style—modern, playful, minimalist—and request AI assistance to create a relevant logo.] Do you have a schematic for this product? Visuals help communicate your product’s design or functionality. [Instruction: Use AI tools like Figma, Sketch, or OpenAI’s image generators to create wireframes, mockups, or technical schematics. Describe the product’s key features to guide the AI tool.]
Costs
What are the costs of making 1 product? These are your marginal costs, including materials, manufacturing, and labor. For example, “Each unit costs $10 to produce.” What are the costs required before you can make your first product? Startup costs might include prototype development, equipment, intellectual property protection, and licensing. For example, “$20,000 for tooling, $5,000 for a patent, and $10,000 for initial marketing.”
Profit Potential
What is the marginal profit potential? This is the difference between the price and the marginal cost. For example, if the product sells for $20 and costs $10 to make, your marginal profit is $10 per unit. What is the total profit potential of this product? Use this formula to calculate: Profit = (Price – Marginal Cost) × Number of Customers – Startup Costs. Example: If you sell 10,000 units at a $10 profit per unit and have $50,000 in startup costs, your total profit is $50,000.
Competition
What is the competitive landscape? Identify competitors, including direct alternatives and workarounds customers currently use. For instance, “Our competitors include X, Y, and Z apps. Customers also use spreadsheets as a workaround.” Will customers be willing to trust you to solve this problem (more than they trust their current solution)? Address how you will build credibility. Examples include testimonials, case studies, or a free trial. What percentage of your potential customers will trust you? Estimate how many customers you can realistically convert. For example, “We expect to capture 10% of the addressable market in the first year due to our unique features and pricing.”
