Ask HN: How to choose a startup opportunity

Hello everyone,

In a few months I expect to have secured some free time and some seed capital to try out some small scale startup ideas.

In my own process, I first compose a list of probable ideas without judgement and usually that can be anywhere from 5 to 20 pages.

The 2nd part of the process I start a judgement process where I measure up resources of seed capital and development time for each idea and weed out the ones that do not match.

The problem in my set of processes is that I have not figured out whether at this point measuring of whether there is fast development of market or not should have a role in the decision making process of what opportunities I want to try.

Thus, I was wondering what HN readers and community members are using as far as their process?

Let me give you an example, in the mobile area there are still a lot of small scale SAAS plays to both mobile developers and their clients. With the low cost of cloud services from amazon and or Google(appEngine has a 1 million hits per month before they charge)one could certainly build out a SAAS startup play and see if one can get enough traction to get a full funding round. FB/Twitter/GoogleBuzz context, etc.

Yeah, someone already did my social enabled by NCF idea..but I have another list of ideas :)

Thanks for taking the time to respond.