Last night I hosted a small dinner with an entrepreneurship thought-leader and amongst the guests was a student who inquired how to find out what kind of startup to pursue. The advice was to A. get out there and engage with people, find places and problems you are interested in. And B. to do volunteering and side-projects that might not work, but will give you skills and hints towards what you will appreciate working on. Here is more on 'Why side-projects are important'.
And boom, at some point you know what you are good at, what you want to do, and you are making revenue. At least, this is how it has worked for me.
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