Idea Generation Skill - Business Idea Validation & Market Analysis

This Skill helps generate, validate, and refine product ideas using proven PM frameworks and templates.

When to Use This Skill

Use this Skill when you need to:

• Generate new product or feature ideas
• Validate business concepts
• Analyze market opportunities
• Research competition
• Evaluate product-market fit
• Create Lean Canvas
• Assess problem-solution fit

Core Process

Step 1: Idea Extraction

From user input, identify:

• Core Concept: What is the product/feature?
• Problem: What problem does it solve?
• Target Users: Who experiences this problem?
• Value Proposition: Why is this solution better?

If information is missing, ask targeted questions:

• "What specific problem are you trying to solve?"
• "Who experiences this problem most acutely?"
• "What alternatives exist today?"
• "Why is now the right time for this solution?"

Step 2: Use Reference Templates

Always read these templates first:

# Use Read tool to access:
/reference/idea-templates/lean-canvas-template.md
/reference/idea-templates/problem-solution-fit.md
/reference/idea-templates/market-analysis-guide.md

These templates provide:

• Lean Canvas structure
• Problem-Solution Fit framework
• Market sizing methodology (TAM/SAM/SOM)
• Competitive analysis templates
• PESTLE analysis guide
• Customer persona templates

Step 3: Apply Frameworks

Lean Canvas

Fill out all 9 boxes:

1. Problem (Top 3)

   • What are the biggest problems?
   • Existing alternatives people use today

2. Customer Segments

   • Early adopters (who needs this most?)
   • User persona details

3. Unique Value Proposition

   • Single, clear, compelling message
   • High-level concept ("X for Y")

4. Solution (Top 3 Features)

   • Minimum features to solve the problem
   • MVP scope

5. Channels

   • How to reach customers
   • Inbound vs outbound strategies

6. Revenue Streams

   • How to make money
   • Pricing model

7. Cost Structure

   • Fixed and variable costs
   • CAC (Customer Acquisition Cost)

8. Key Metrics

   • What to measure
   • Success indicators

9. Unfair Advantage

   • What can't be easily copied
   • Sustainable competitive advantage

Problem-Solution Fit

Phase 1: Problem Identification

• Problem statement (clear, specific)
• Who experiences it (target segment)
• When it occurs (context)
• Why it matters (pain level 1-10)

Problem Validation:

• Customer interviews needed (min. 10)
• Market research data
• Competitor analysis
• Evidence of pain severity

Phase 2: Solution Design

• Solution hypothesis
• MVP features (must-have only)
• Differentiation from alternatives

Phase 3: Validation Plan

• How to test with users
• Success criteria
• Metrics to track

Market Analysis

Market Sizing (TAM/SAM/SOM):

TAM (Total Addressable Market):

• Total market demand
• Calculation: Top-down or bottom-up
• Data sources: Industry reports, government stats

SAM (Serviceable Available Market):

• Portion of TAM you can reach
• Filter by geography, product fit, regulations

SOM (Serviceable Obtainable Market):

• Realistic market share (1-5 years)
• Consider competition, resources, GTM strategy

Example:

Product: AI Study Planner for College Students

TAM: $5B (Global edtech for higher education)
SAM: $500M (US college students, study tools segment)
SOM: $25M (5% market share in 3 years, 500K users × $50 ARPU)

Competitive Analysis:

Create comparison table:

Competitor	Strengths	Weaknesses	Market Share	Pricing	Our Differentiation
Competitor A	Brand, features	Expensive	40%	$20/mo	AI personalization
Competitor B	Free, simple	Limited features	30%	Free	Premium features
Competitor C	Mobile-first	No web app	20%	$10/mo	Cross-platform

PESTLE Analysis:

• Political: Regulations, policies
• Economic: GDP, unemployment, inflation
• Social: Demographics, lifestyle trends
• Technological: Innovation, automation
• Legal: Laws, compliance
• Environmental: Sustainability, climate

Persona Creation:

## Persona: [Name]

### Demographics
- Age: 20-24
- Location: US, urban areas
- Education: Undergraduate
- Income: $0-20K (part-time work)

### Goals
- Graduate with good GPA
- Balance studies with social life
- Prepare for career

### Pain Points
- Overwhelmed by multiple deadlines
- Poor time estimation
- Procrastination
- Lack of study structure

### Current Solutions
- Google Calendar (too manual)
- Physical planner (easy to lose track)
- Sticky notes (disorganized)

### Technology
- Proficiency: High
- Devices: Laptop, smartphone
- Apps used: Notion, Spotify, Instagram

### Quote
"I know what I need to do, I just can't figure out when to do it all."

### Jobs-to-be-Done
When I have multiple assignments due,
I want an automated study plan,
So I can focus on learning instead of planning.

Step 4: Generate Validation Report

Output Structure:

# [Product Name] - Idea Validation Report

## Executive Summary
[2-3 sentences: What it is, who it's for, why it matters]

## Problem Statement
**Problem:** [Clear, specific description]
**Who:** [Target users]
**Pain Level:** [X/10]
**Frequency:** [How often]
**Current Alternatives:** [What people use today]

## Solution Overview
**Core Solution:** [How it solves the problem]
**Key Features:**
1. [Feature 1]
2. [Feature 2]
3. [Feature 3]

**Differentiation:** [What makes this unique]

## Market Opportunity
### Market Size
- TAM: $X billion
- SAM: $Y million
- SOM: $Z million (realistic 3-year target)

### Market Trends
- [Trend 1: Growth driver]
- [Trend 2: Tailwind]
- [Trend 3: Opportunity]

### Customer Segments
[Persona details]

## Competitive Landscape
[Comparison table]

**Our Positioning:** [Where we fit in the market]

## Business Model
**Revenue Streams:**
- [Primary: Subscription at $X/month]
- [Secondary: Premium features]

**Unit Economics (Projected):**
- LTV: $X (based on Y month retention, $Z ARPU)
- CAC: $A (via B channels)
- LTV/CAC: C:1 [Target: 3:1+]
- Payback: D months [Target: <12]

**Pricing Strategy:**
- Freemium with premium tier
- Free: [Basic features]
- Pro: $X/month [Advanced features]
- Benchmark: [Compared to competitors]

## Validation Plan
**Next Steps:**
1. Customer Interviews (Target: 20 interviews)
   - Script: [Key questions]
   - Timeline: [2 weeks]

2. MVP Development
   - Features: [Minimum viable features]
   - Timeline: [6-8 weeks]

3. Beta Testing
   - Users: [50-100 early adopters]
   - Success Metrics: [Activation rate >40%, retention >30%]

4. Go/No-Go Decision
   - Criteria: [Problem validated, users willing to pay, NPS >30]
   - Timeline: [3 months from now]

## Risk Assessment
| Risk | Probability | Impact | Mitigation |
|------|-------------|--------|------------|
| Low user adoption | Medium | High | Validate with interviews first |
| Strong competition | High | Medium | Focus on differentiation |
| Technical complexity | Low | Medium | Prototype early |
| Market timing | Low | High | Launch MVP quickly |

## Success Metrics
**Phase 1: Validation (Month 1-3)**
- 20 customer interviews completed
- Problem validated by 80%+ of interviewees
- 100 beta signups

**Phase 2: MVP (Month 4-6)**
- 1,000 signups
- 40% activation rate
- 30% Day-7 retention
- NPS >30

**Phase 3: Growth (Month 7-12)**
- 10,000 active users
- 20% MoM growth
- 10% free-to-paid conversion
- $10K MRR

## Go/No-Go Recommendation
**Recommendation:** [GO / NO-GO / PIVOT]

**Reasoning:**
- [Strength 1]
- [Strength 2]
- [Risk 1 to address]

**Confidence Level:** [High / Medium / Low]

**Suggested Next Action:**
[Specific, actionable next step]

Best Practices

For Idea Generation

✅ Do:

• Start with a clear problem statement
• Validate problem before solution
• Research existing alternatives thoroughly
• Talk to real potential users
• Be specific about target segment
• Estimate market size realistically
• Consider business model early

❌ Don't:

• Fall in love with solution before validating problem
• Claim "no competitors" (there are always alternatives)
• Overestimate market size
• Skip customer research
• Ignore unit economics
• Build for everyone (too broad)

For Market Analysis

✅ Do:

• Use multiple data sources (triangulate)
• Cite sources for market size
• Analyze both direct and indirect competitors
• Identify market trends (tailwinds/headwinds)
• Consider regulatory environment
• Assess timing (why now?)

❌ Don't:

• Rely on single source for TAM
• Ignore competitive threats
• Assume unlimited market
• Overlook barriers to entry
• Forget about market timing

For Validation

✅ Do:

• Define clear success criteria
• Plan systematic customer research
• Test riskiest assumptions first
• Set realistic timelines
• Identify metrics to track
• Plan go/no-go decision points

❌ Don't:

• Skip validation (build first, ask later)
• Only talk to friends/family
• Ask leading questions
• Ignore negative feedback
• Confuse "nice idea" with "would pay"

Output Guidelines

Format:

• Markdown with clear headings
• Tables for comparisons
• Bullet points for clarity
• Bold for key insights
• Data-driven (cite sources)

Tone:

• Objective and balanced
• Realistic, not overly optimistic
• Data-driven, not speculative
• Actionable recommendations

Length:

• Executive Summary: 2-3 sentences
• Full Report: 5-10 pages
• Each section: Comprehensive but concise

Example Usage

User Input: "I want to build an app that helps remote workers find co-working buddies"

Skill Activation:

1. Read reference templates
2. Ask clarifying questions:
   • "What specific problem do remote workers have with working alone?"
   • "How do they currently find co-working buddies?"
   • "What would make them choose your app over just using social media?"
3. Apply Lean Canvas framework
4. Conduct market sizing
5. Research competitors (existing apps, social platforms, co-working spaces)
6. Create persona (remote worker profile)
7. Generate comprehensive validation report
8. Provide go/no-go recommendation

Output: Complete Idea Validation Report with all sections filled, data-backed, and actionable.

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Integration Points

This Skill works with:

• idea-agent: Provides framework expertise for idea validation
• pm-knowledge-base: Uses frameworks like Lean Canvas, JTBD, RICE
• prd-agent: Hands off validated idea for PRD creation

Always reference /reference/idea-templates/ files for latest templates and frameworks.