Before you start ask these questions. The second one is really important
(1) Is there a gap in the market?
(2) Is there a market in the gap?
Question 1: is about needs being unmet or not fully satisfied. In the realm of disruptive technology, you may be able to solve customers problems a better way. The gap in the market could even live at the emotional level – $200k Hermes handbag anyone?
Question 2: is about whether we can make money filling it. Until we have real revenue and real costs, outside of a VC funding cycle the question remains unanswered. Users alone, do not a market make – just ask the dot com boom graveyard. The cool thing about being small is that previously unprofitable segments for big players can now become a super-efficient money spinners. Legacy infrastructure is the enemy of today.
Sometimes though, it's even better to go into an industry which is busy, has customers, competitors snd profitability, because at least you know its a real space with real money being made. All you need to do in this case is car
These questions are not new, but we’ve got new tools to ask them with. We can know about the market gaps quicker, and maybe even change what the answers are.