Weighted Average Spreadsheets

I have this spreadsheet for storing startup ideas I might like to work on someday.

Screen Shot 2017-01-08 at 5.54.55 PM.png

Here’s the full sheet:  https://docs.google.com/spreadsheets/d/1i3gSydipLoRbHmGN7mTMk1xif_k14NhoL-DMqKiDE3g

As you can see I score each idea according to several different factors.

At the bottom I do a weighted average of all these factors to come up with a single score for the idea and then I sort all the ideas by this score:

Screen Shot 2017-01-08 at 5.56.28 PM.png

Note some factors have negative weights — indicating that a high score for that factor is bad.

So far this has been a great way to quickly think through any ideas that pop into my head.  It also helps ensure that when I do work on something, I’m working on the thing with the highest expected value.  It’s also easy to add new factors or adjust the weights for existing ones as I learn more about what makes an idea great.

I’ve got another spreadsheet for rating potential cofounders.  But I’m not going to make that one public for obvious reasons. 🙂

If you have a large number of candidates to choose from and each candidate differs in a lot of ways, this kind of spreadsheet seems like a great solution.  A more businessy friend once told me that there is a word for this sort of analysis, but I can’t remember what it is.  Let me know if you know.

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