The article presents the author's approach and an algorithm for the process of choosing an idea of an innovative product as the first stage of creating an IT startup. The process includes two stages: generating ideas; analysis and selection of ideas. The main point of the proposed approach is that an effective product must solve an actual problem. At the first stage, ideas are generated and formalized using the SKW-matrix. Each idea relates to a specific problem. At the second stage, the ideas are analyzed and selected according to given characteristics. First, the relevance of selected problem and its elaboration is checked, and then the potential attractiveness of the products that can be used to solve it is assessed. Using this approach may reduce the risk of creating an unclaimed product and allows avoiding the associated inefficient costs. © 2023 American Institute of Physics Inc.. All rights reserved.