What's New: How to pick a winning business idea

(from the latest issue of the Indie Hackers newsletter)

The Six Fits framework can help you choose your next idea:

• You need founder-market fit, founder-marketing fit, founder-product fit, product-market fit, product-marketing fit, and market-marketing fit.
• Founders face a unique set of challenges that can affect mental and physical wellbeing. Support from loved ones and professionals can help.
• After raising nearly $1M in angel funding, Elie Steinbock is bootstrapping his current business to maintain full control.

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The Six Fits Framework 💡

by Jay Tan

These are the four ingredients of a successful business:

1. Founder: The founder has to be smart, driven, and passionate.

2. Market: The market must exist, and be growing.

3. Product: The product has to work well for its intended purpose.

4. Marketing: The marketing has to reach target customers effectively.

But here's what's often overlooked.

Founder-market fit

You must have domain expertise and experience in your chosen market. Don't do something that's way out of your field of knowledge.

Founder-marketing fit

Make sure whatever repeatable marketing strategy you choose actually fits your personality.

Don't do YouTube or TikTok if you can't speak well. Don't do cold calling if you have social anxiety. Don't do LinkedIn if you can't tap into corporate needs.

Founder-product fit

Even with founder-market fit, you still have to be able to make the product.

If your present skillset doesn't match the skillset needed to successfully build and iterate the product, you don't have a business.

Product-market fit

This is the Holy Grail of any successful business. It's when your product fully satisfies the demands of the market, and people are paying you money for it.

In general, you get here by progressive iteration based on relevant customer feedback.

Product-marketing fit

Whatever your product is, it has to be marketed the right way. TikTok can work for consumer products, but maybe not for B2B products.

Paid ads can work for dropshipped goods, but maybe less so for digital downloadables.

Market-marketing fit

Some markets hate being marketed to in a certain way. A direct sales force might work for certain B2B niches, but less so for consumer markets.

Do your own research, and don't antagonize your target market.

Wrapping up

The Six Fits framework above is simple to follow. Make sure all of the boxes are checked before you embark on a new venture. Don't launch with an idea that is fundamentally flawed!

If you enjoyed this, consider subscribing to my newsletter, where I send my top learnings about entrepreneurship each week.

Discuss this story.

In the News 📰

from the Growth Trends newsletter

🚀 Telegram launches Business accounts.

📧 The zero click email strategy that gets 40%+ open rates.

💲 Link to your product here. Our most affordable ad.

🇩🇪 Germans stand out for their comparatively light use of social media.

🤖 How Google intends to kill AI clickbait.

📖 Your guide to UX accessibility.

Check out Growth Trends for more curated news items focused on user acquisition and new product ideas.

Common Mental Health Challenges for Founders 🧠

by Marc Andre

Being a founder comes along with a unique set of challenges that can impact both mental and physical wellbeing. Many of these challenges can leave founders feeling isolated and overwhelmed.

1. Work-life balance

Founders often find themselves working long hours, sacrificing personal time and relationships to keep their businesses going.

2. Stress

The constant pressure to succeed, meet financial demands, and manage a team can cause immense stress and anxiety.

Chronic stress is common among founders.

3. Burnout

Burnout is a state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress.

4. Anxiety

Indie hackers face uncertainty on a daily basis. From competitive changes and financial pressures to employee management and customer satisfaction. This constant state of unpredictability can cause significant anxiety.

Anxiety is a natural response to stressors, but when it becomes persistent and overwhelming, it can affect both mental and physical health.

5. Isolation and loneliness

Founders can often feel isolated along their journey. They may have difficulty relating to those who are not on a similar path, and may find it challenging to maintain personal connections due to their busy schedules.

The lack of a strong support system can also make managing stress and other mental health issues more difficult.

6. Fear of failure

The fear of failure is common among founders, as for many, the success of their business is closely tied to their personal identity and worth. The pressure to constantly achieve and succeed can lead to self-doubt and imposter syndrome.

This fear of failure can also make it difficult for founders to take risks and innovate.

7. Self-doubt

Founders often have to make difficult decisions and take on multiple roles within their businesses. This can lead to self-doubt and feelings of inadequacy, especially when faced with challenges or setbacks.

These doubts can also impact decision-making and confidence.

8. Imposter syndrome

Imposter syndrome is a psychological pattern where individuals doubt their achievements and fear being exposed as a fraud. Founders may experience this when they compare themselves to others, or feel like they are not living up to societal expectations.

9. Damaged relationships

The demanding nature of entrepreneurship can also take a toll on personal relationships. Founders may struggle to find time for friends and family, leading to strained or damaged relationships.

10. Health and fitness issues

The stressors of entrepreneurship can also have a significant impact on physical health. Long work hours, lack of sleep, and unhealthy eating habits can lead to fatigue, weight gain, and other health problems.

Founders may also neglect their own wellbeing in order to prioritize their business, leading to a decline in overall health and fitness.

Breaking through

If you are struggling with any of the above issues, here are some tips to cope:

• Seek support from loved ones.

• Practice self-care.

• Don't be afraid to seek professional help.

• Remember that you are not alone in these challenges.

Reaching out for help is a sign of strength, not weakness.  Take care of yourself and your business, and remember that success is not just about financial gains.

At Founder Reports, we're gathering data to learn more about the specific issues that founders face. Please consider taking our anonymous one minute mental health survey.

Discuss this story.

Top Posts on Indie Hackers This Week 🌐

💻 Promoting on Reddit. Posted by Zaur T.

🛠 Building a new SaaS product on livestream. Posted by Porush Puri.

🛣 Navigating your journey in programming. Posted by Hüseyin Kara.

💰 First paying customer for my new SaaS! Posted by Mike Strives.

🆓 Drive traffic by building free tools. Posted by Fernando.

👎 AI sucks, and you probably shouldn't use it. Posted by Levi.

Want a shout-out in next week's Best of Indie Hackers? Submit an article or link post on Indie Hackers whenever you come across something you think other indie hackers will enjoy.

From Angel Funding to Bootstrapping 🥾

by James Fleischmann

After raising nearly $1M in angel funding for his previous two businesses, Elie Steinbock is bootstrapping his latest project.

Time > money

Elie spends money on anything that saves him time. He puts money into books, SaaS products, health (food, supplements, personal trainers), and high-end office equipment.

Elie is a developer by trade, but he has also learned design and marketing to save money on hiring someone. He recently launched Inbox Zero, which currently has 4K users. He also has an agency that was at $1M ARR until he scaled back, a fantasy soccer game with 250K users, and a Web3 affiliate platform called ShareMint.

The cold, hard numbers

• Inbox Zero revenue: $900 MRR.

• ShareMint revenue: Variable (thousands per month).

• Skilled agency revenue: $15K MRR.

• Draft Fantasy revenue: $3.3K MRR.

Elie pays himself $4K MRR from his agency, as designated by his accountant, who says it's the optimal amount to take tax-wise in Israel. With this level, he pays 23% corporate tax, and a similar amount on his salary.

Charge for your value

Elie is all about charging what your product is worth. If you don't, others will outcompete you on marketing because they can afford to do so.

He says not charging is a mistake that many first-time founders make. The only thing he advises giving away is a free tool as a lead magnet.

Post-angel bootstrapping

Elie raised $400K for Draft Fantasy and $450K for ShareMint. He's bootstrapping now, but says that both approaches have benefits:

There’s a lower ceiling you need to hit as a bootstrapped founder. If you can get to $1M ARR, it's all yours. Even $300K ARR is nice as a solo founder!

There's an old Jewish phrase in Pirkei Avot that says: Who is rich? The one who is satisfied with what they have.

Discuss this story.

The Tweetmaster's Pick 🐦

by Tweetmaster Flex

I post the tweets indie hackers share the most. Here's today's pick:

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Special thanks to Jay Avery for editing this issue, to Gabriella Federico for the illustrations, and to Jay Tan, Darko, Marc Andre, and James Fleischmann for contributing posts. —Channing