20 Ideas Before Action

Joe Lonsdale shares his approach to identifying and pursuing business opportunities through a systematic ideation process.

Core Philosophy of the 20 Ideas Exercise

• Generate 20 possible ideas in a specific domain before choosing what to pursue
• Goal is to find conceptual gaps in the world that could be improved
• Focus on finding one strong path rather than multiple weak options
• Must consider both what could be done AND the practical path to get there

Key Implementation Steps

• Assign dedicated person to lead the ideation process
• Bring in relevant advisors who can provide domain expertise
• Talk to network of smartest people in the target space
• Aim to get 8-9 solid answers from the initial 20 ideas
• Choose the most important/impactful idea to pursue

Evaluation Criteria

• Look for areas that are:
  • Big parts of the economy
  • Not exposed to modern technology
  • Have clear paths to implementation
  • Can generate significant revenue before competition notices
• Must consider:
  • Cost to build
  • Customer adoption challenges
  • Stakeholder incentives
  • Regulatory environment

Real Example: Defense Technology

• Mapped out 20 possibilities in defense sector
• Evaluated which was most important to pursue
• Considered:
  • Technical feasibility
  • Market size
  • Competition
  • Strategic importance
• Selected electromagnetic pulse technology as focus
• Result: Built successful company (Epirus) in chosen area

Key Success Factors

• Having strong network to validate ideas
• Understanding institutional dynamics
• Ability to iterate quickly on concepts
• Access to top talent for execution
• Patient capital to fund development