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Criteria for choosing a company
The six criteria I used to filter 109 ideas down to 7. Use them for your own decision.
Having ideas is easy. The hard part is comparing a collections agency, an accounting firm and a medical membership model with the same yardstick. This is the yardstick I use.
The six criteria
Each one is scored from 1 to 5. The total is out of 30.
| Criterion | The question |
|---|---|
| G · Growth | Is the market growing, or am I fighting over a shrinking pie? |
| R · Revenue | Does it make real money soon, not a valuation? |
| D · Durability | How easily could an AI lab turn it into a free feature, or make it disappear? |
| P · Proven problem | Have others already shown the problem exists and that people pay to solve it? |
| MS · Market size | Is the market big enough to be worth it? |
| AI · AI advantage | Does AI let me run it far more efficiently than the incumbents? |
Three filters before scoring
- Old pain, new mechanism. The need must be old and everyday; what’s new is the way to solve it that AI just made possible.
- High frequency. Something people need often and that couldn’t be automated until now.
- Be the business, not the software. In most cases, whoever runs the service with AI wins more than whoever sells the AI to the operator.
How to use it
Make the full list without filtering. Score everything, even quickly. Then distrust the ranking: scores are a filter for discussion, not an answer. I went from 109 to 7 this way, and I’m deciding from 7 to 1 in public.
Get the Excel template.
The six criteria, ready to score your ideas. It lands in your inbox with the newsletter.