how to find the perfect BUSINESS IDEA as a developer in 2026 (FULL GUIDE)
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Video Summary
This video presents a comprehensive guide for software engineers on how to successfully launch and scale their own businesses, emphasizing a shift from building to validating and understanding the market. It argues that the biggest reason for software project failure is not a lack of technical skill, but a failure to validate demand before development. The core principle highlighted is "service before product, and validation before code." An interesting fact revealed is that over 90% of side projects still fail, despite the ease of building with modern tools.
Short Highlights
- Most software ideas fail due to a lack of validation, not execution.
- Building software is easier than ever with AI, but success is harder.
- The core principle is "service before product, and validation before code."
- A good idea is relative to your unique advantage (experience, location, network).
- Validate demand by focusing on buyer intent and willingness to pay, not just user interest.
- Pricing should be tied to outcomes (revenue, cost savings, risk reduction).
- The founder mindset shifts from task-oriented execution to outcome-focused ownership.
Key Details
Introduction and Ground Rules [0:00]
- The workshop is designed as an intricate deep dive, encouraging attendees to take notes by hand for better retention.
- Attendees are encouraged to stay until the end for exclusive bonus resources, templates, script banks, and a comprehensive Q&A.
- Key engagement strategies include staying engaged in chat, asking questions live, staying until the end, and participating in the Q&A.
"If you have some water with you, get that ready and we're going to get straight into it."
The Problem: Why Software Ideas Fail [0:13]
- Many software engineers have ideas but struggle with which one to pursue due to an overwhelming number.
- A significant trap is having ideas but not executing them, or executing them with insufficient effort, comparing it to preparing for job interviews which often receives more attention than a business idea.
- Despite the ease of building software now with tools like AI code generation and no-code platforms, over 90% of side projects still fail.
- The barrier to entry for building is gone, but the barrier to success is higher than ever, leading to a supply of "random useless software" with insufficient demand.
"The problem isn't that you don't have ideas, right? ... It's the simple fact that there's too many ideas. You don't know what to do with them."
The Ideation Formula: Finding Your Leverage Zone [20:20]
- A good idea is not universally good or bad, but good or bad relative to you as the founder.
- Unique advantage, composed of experience, location, and network, is the key differentiator for business success.
- A winning idea requires the founder's unique advantage, founder fit, a clear buyer, and the right timing.
- Experience encompasses depth, breadth, and transferability; network relates to distribution or budget access; location provides asymmetric access and local advantages.
"There is no such a thing as a universally good or a universally bad idea. An idea is only good or bad relative to you as the person."
Validation Before Code: Proving Demand [30:51]
- Building faster with AI does not mean proving demand is easier; it has become slower as people neglect market validation.
- The core principle is to separate interest from intent before writing any code.
- Five common validation mistakes include mistaking compliments for signals, choosing wrong interview targets (friends/family), relying on hypotheticals, focusing on vanity metrics, and overbuilding MVPs.
- Validation requires unbiased economic intent, and the most reliable signal is people paying you money.
"Validation at its core requires concrete intent action."
Users vs. Buyers and Features vs. Outcomes [47:35]
- People buy outcomes, not features. The success of a product hinges on the results it delivers, not its cool technical aspects.
- Users do not pay; buyers do. Software engineers often build for users (daily operators, champions, admins) who don't control budgets.
- Buyers (economic buyers, budget owners, approvers) care about ROI, business value, risk, and compliance. Always solve for the buyer first.
- In B2B contexts, avoid using consumer psychology; focus on ROI, risk mitigation, and business value.
"Users do not pay. Buyers do."
Pricing Strategy: Service First, Then SaaS Tiers [54:05]
- Effective pricing ties directly to the value delivered: impacting revenue (top line), saving time/cost, or reducing risk.
- The perceived value is influenced by the outcome, switching costs, and trustworthiness.
- Experiment with pricing through pilots, decoy tiers, ROI calculators, and value anchoring.
- Understand objections like "price is too high" (unclear ROI), "competitors are cheaper" (feature vs. outcome comparison), and "no budget" (problem not urgent enough) to adjust pricing strategies.
"What gets them to put down their credit card? What gets them to send you that money? Okay? It's three things."
Founder Mindset: Shifting to Ownership [1:04:04]
- The key shift for founders is moving from executing tasks (levels 1-2) to focusing on customer results and profit/loss (levels 4-5) of the ownership ladder.
- Founders optimize for learning speed through feedback loops, rather than optimizing for certainty like employees.
- Time allocation should prioritize validation and outreach over building, as talking to customers and understanding pricing offers disproportionately higher leverage.
- A weekly cadence of setting hypotheses, executing tests, making decisions, analyzing results, and preparing the next experiment accelerates learning and business growth.
"The least leveraged thing that you can do is build. ... The highest leverage thing is talking to customers, right? Validating, conducting interviews, doing pricing tests, actually getting money."
The Complete System and Next Steps [1:13:23]
- The six pillars (idea, ideation formula, validation, users vs. buyers, pricing, founder mindset) provide a complete system for success.
- Three core truths are: ignore opinions, optimize for behavior; target buyers, not users; focus on validation, not building.
- The system can be implemented in weeks, leading to launching a pilot, signing a first contract, and achieving financial freedom.
- Support through accelerators like Coticio can significantly speed up this process by providing structured playbooks, one-on-one coaching, and a community of like-minded founders.
"If you are not talking to buyers about money, you are not building a business. You are building a side project or a hobby."
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