Peter Stewie's Startup Advice for App Ideas

Validating a startup idea with Peter Stewart’s gradual approach

Peter Stewart of @peterstewiestartup in the app ecosystem claims “Your App Idea is going to fail. Not because of the code. Because you skipped these 4 questions.” He proposes an app validation framework to streamline the market research phase. This series of text-based slides divides the work of researching an app idea into four distinct questions. Our deep dive covers the framework’s mechanics, its insights into the market and distribution, and how this tool fits into the startup landscape. Israel Bloom once said, “If your idea is unique, and you are willing to adapt, there is no reason to doubt.” This is why Stewart suggests that you must look for competition, as it proves people are willing to pay.

Building your moat: Distribution strategy

Stewart’s framework emphasizes distribution as a key differentiator. He states that anyone can replicate your app in a weekend, but they can’t mimic your audience, backlinks, or brand reputation. He encourages startups to focus on building a channel instead of worrying about being copied. He calls this your moat — a competitive advantage that protects your business from competitors. Understanding the importance of distribution allows startups to think beyond their code and focus on building a strong customer base and brand reputation. This mindset shift encourages startups to create an ecosystem around their app that goes beyond just the product itself. By focusing on distribution, startups can create a sustainable business model that rewards customer loyalty and offers a competitive advantage over imitation apps. Distributing your app is far more complex than any technical challenge — especially in a fragmented market. It matters who you know and how they feel about your app. Don’t underestimate a brand name in a niche.

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Finding your niche

If you’re venturing into the app market, you want to avoid creating a niche that no one will recognize. App validation is focused on researching how much the niche makes. If an individual app is making $100,000 a month, you may be onto something. This market research tool is a must-do for any entrepreneur. It’s entirely possible that if an app is thriving on its own, there’s only so much more that you can add. But if a market is fragmented, and canvases are selling for $10,000 a month, then there’s room for growth. Stewart wants you to think about fragmented markets as gold mines. For example: if you’re interested in an app where customers can order meats online, look at the market as a whole. A fragmented market means no one company is dominating the space, making you a space for you. If this niche excites you and you have the tools to implement it, then this fragmented market is a gold mine.

Distribution, validation, and market competition

This framework also strongly emphasizes the importance of distribution. Distribution channels are what make free software worthwhile, and it’s what keeps people coming back. If you think distribution is the moat, then what’s the best way to invest in it? By building the best relationships in the marketplace. By making your app’s distribution its unique selling point. Peter Stewart emphasizes competition as a good thing. If you find other apps making money in the same genre, then you know people are willing to pay. This is the first step in validating your original idea. Now, look at these apps. Are they selling effectively? Is every space overtaken, or can you find a unique corner? If there is an infinite number of apps making money, then this is the type of niche you want to dive into. Finding the competition means finding the market. Start with researching existing apps, and use tools like Sensor Tower and app-intel tools to narrow down the field. By exploring the market, you are validating your idea.

Building your brand

Building a brand is much more difficult than building an app, and it takes much more time. Jennifer Sherlock of Blue Frog PR once said, “Building your brand is like raising a child: both require a lot of love and constant guidance.” By focusing on your own distribution, you are building a brand that will last. But what’s the best part? As Stewart points out, anyone can copy your features in a weekend. They can’t copy your audience, your backlinks, or your name. What makes Stewart’s thought process unique is that you win the war by building distribution. While you can copy the features of a product, you can’t copy the relationships an app has built. If your app’s audience has a stronger relationship with your brand, then you win. What’s the best way to do this? By focusing on the customer and solving problems that they’re having. How do you validate an idea? According to Stewart, distribution, not just coding, is a crucial part. You’re no longer competing with other apps, but you’re competing with other people building relationships. That’s the future of app validation — building a brand, not just a product. The future is your moat.

Transforming your idea into a free tool

Stewart took the framework and turned it into a free tool that scores your idea for you. You might have to comment “VALIDATE” to get a link, and you must follow the account to receive the link you need. Publishing a framework, and offering it for free helps your audience find a community. Users are given the option of using this free tool to score their app idea. This framework empowers you to begin the conversation of validation, and begin the conversation around distribution. If you’re thinking of creating an app, start here.

Validating your idea, step-by-step

• Comment and follow: Interact with the framework by commenting “VALIDATE” and then follow the account to claim the link. This is a great way to ensure users use the tool and keep the conversation about app validation alive.
• Do it yourself: Use Stewart’s framework to develop a process on your own. Start by asking the four questions, and then think about what these questions mean to you. Acknowledge the importance of competition, distribution, and branding.

Keep your competition honest

While Stewart’s framework is based on competition, he’s not encouraging a price war. Stewart’s definition of competition is based on market validation as a form of quality control. Elizabeth Moss of EdX said, “Competition isn’t just about who can create the most features or who can offer the most expensive features. Competition is about who can offer the best product.” This is why Stewart wants you to look at the market as a whole. If you’re facing competition in your niche, then you know there are people willing to pay for it. But if there’s no competition, then there might not be a market.