Overall Score: 8.5/10 (Strong Viability)
Executive Summary
Core Insight: Quality of AI-generated code depends on specification quality.
What Spec Doc Does:
Positioning: "Skip Figma. Go from spec to working prototype in seconds."
Market Opportunity
Total Addressable Market
- Primary: Cursor Users (100K+) → Target 5% = 5K users @ $29/mo = $145K MRR
- Secondary: Product Managers (500K+) → Target 0.4% = 2K users = $58K MRR
- TAM: 7M+ (5M developers, 2M PMs) → 1% penetration = $2M+ MRR potential
Market Validation
| Product | Revenue | Lesson |
|---|
| Gamma (AI presentations) | $102M ARR | Workflow + AI scales |
| Copy.ai (AI marketing) | $24M/year | Specialization wins |
| Framer AI (AI websites) | $3M+ ARR | Text → output proven |
Problem-Solution Fit
Pain Points
| Pain | Severity | Impact |
|---|
| Chat loses context (50+ msgs) | 10/10 | 2 weeks wrong direction |
| No version control for decisions | 9/10 | Can't track "why" |
| Validation before building expensive | 9/10 | $20K wasted dev |
| Scattered specs (Notion/Docs/Chat) | 8/10 | 30+ min finding context |
Unique Value
- Document-first (not chat) 2. Specs → Prototypes → Code (only tool with all three)
- AI learns your style (personalization lock-in)
- Triple-duty specs (docs + AI prompt + prototype generator)
Competitive Analysis
| Feature | ChatGPT | Notion AI | Cursor | Figma | Spec Doc |
|---|
| AI-assisted writing | ✅ | ⚠️ | ✅ | ❌ | ✅ |
| Document-first UI | ❌ | ✅ | ✅ | ✅ | ✅ |
| Spec templates | ❌ | ⚠️ | ❌ | ❌ | ✅ |
| Version control | ❌ | ⚠️ | ✅ | ✅ | ✅ |
| Prototyping | ❌ | ❌ | ❌ | ⚠️ | ✅ |
| Code export | ❌ | ❌ | N/A | ⚠️ | ✅ |
| AI learns style | ❌ | ❌ | ✅ | ❌ | ✅ |
Only Spec Doc: Specs + Prototypes + Code export in one workflow.
Business Model
Pricing Tiers
Launch (Month 1-3):
| Tier | Price | Features |
|---|
| Free | $0 | 3 specs, 30-day history, 20 AI/month |
| Pro | $29/mo | Unlimited specs/history/AI |
| Team | $39/user | + Team workspace, shared templates |
With Prototyping (Month 4+):
| Tier | Price | Features |
|---|
| Free | $0 | 3 specs, 0 prototypes |
| Pro | $29/mo | Unlimited specs, 5 prototypes/month |
| Pro Plus | $49/mo | Unlimited everything |
| Team | $59/user | + Team features |
Unit Economics (Pro tier)
- Revenue: $29 | AI: $5 | Infrastructure: $2 | Margin: 76%
- CAC: $50 (organic) | Retention: 18mo | LTV: $522 (Pro), $882 (Pro Plus)
- LTV:CAC = 10:1 (excellent)
Lock-In Mechanisms
| Timeline | Lock-in | Mechanism |
|---|
| Month 1 | Low | 1 spec (easy to leave) |
| Month 6 | Medium | 12 specs + 50 prototypes + history |
| Month 12 | High | 30 specs + AI personalization + team adoption |
Revenue Projections
Conservative (Specs Only)
| Month | Users | MRR | ARR |
|---|
| 3 | 50 | $1,450 | $17K |
| 6 | 150 | $4,350 | $52K |
| 12 | 400 | $11,600 | $139K |
Optimistic (With Prototyping)
| Month | Users | Avg Price | MRR | ARR |
|---|
| 6 | 150 | $34 | $5,100 | $61K |
| 12 | 400 | $39 | $15,600 | $187K |
| 18 | 800 | $39 | $31,200 | $374K |
Go-to-Market Strategy
| Phase | Channels |
|---|
| Month 1-3 | Hacker News, Twitter/X (build in public), Direct outreach (50 Cursor users) |
| Month 4-6 | Product Hunt (after prototyping), Content (SEO), Community (r/cursor, Discord) |
| Month 7-12 | Cursor partnership, Template marketplace (viral loop), Affiliate program |
Risk Assessment
| Risk | Likelihood | Mitigation |
|---|
| Constellation delay | High | Benefits all products |
| Market education | Medium | Launch specs-only first |
| ChatGPT adds features | Medium | Document-first UX, prototyping |
| Feature creep | High | Strict MVP scope, kill criteria |
Kill Criteria (Month 3):
- <20 paying users → Pivot before prototyping
- <30% D7 retention → Fix core before adding features
Success Metrics
North Star: Weekly Active Users (WAU) creating/editing specs
KPIs
| Metric | Target |
|---|
| Activation (create spec in 7 days) | >60% |
| D7 Retention | >30% |
| D30 Retention | >20% |
| Free → Pro Conversion | >5% |
| Monthly Churn | <10% |
| NRR | >100% |
Milestones
| Phase | Users | MRR | Validation |
|---|
| MVP (Month 1) | 20 | $580 | People will pay |
| PMF (Month 6) | 300 | $11.7K | Growth sustainable |
| Scale (Month 12) | 1,000 | $39K | Path to $100K ARR |
Recommendation: BUILD IT ✅
Strong differentiation, multiple moats, proven unit economics, clear market.