How to Find the great business ideas to start a startup company successfully
Before starting a business first idea comes into your mind. You may believe it or not the top entrepreneurs are good problem solvers. They have established their world class enterprises or companies because of the problems they have once faced. They made up their mind to not let others face the same situation.
After working with a number of startup companies I have prepared this article on ‘How to Find the great business ideas to start a startup company successfully’, which will definitely help to grow your startup company successfully.
The problem, time and money are interrelated. If you can solve the problems then time and money both can be saved or if you save the time then you have to solve the problems.
Scientific inventions are also based on the problem-solving method. Thomas Edison invented Electric Bulb because people were facing the problem of illumination. Graham Bell invented Telephone because people used to face the problem of connecting with others. Take the example of a mechanic, what is his job? He saves your time and money by repairing your vehicle. Take the example of a plumber, he repairs the water system and saves your time.
Solve problems to make life better:
If you enjoy solving the problems, it gives you new opportunities for new products, services. And remember start from small. Don’t leap to the sky directly. Even a small coffee shop can be a big future brand. A number of examples can be cited on problems solving theory. Technology is based on the concept of saving users time to make life comfortable.
Do you remember the old days of standing in a queue to book a movie ticket? You order food online, order garments or book a cab online because of the technology, which saves a lot of time. People used to waste their time in hectic HTML, CSS coding to create websites, to save their time WordPress was invented. Now you can publish your website within an hour without any knowledge of programming or coding.
Farming Machines, Engineering Tools are developed to solve problems and save time only. A physician or consultant saves your time in the exchange of his service and time he has spent to learn the experience. That’s why you pay money in the exchange of time he invests in you. People around you are getting problems in various sectors. Take a look to the Maslow’s Hierarchy of needs.
People are having problems in friendship, family, self-confidence, food, health. When the needs are not fulfilled the problems arise. Social Media is made on the problem of friendship and connectivity.
Startups’ have the only goals to let people not face the problems, they have endeavored.
Go from 0 to 1
When you are copying another’s idea by following the same principle, it is called as progressing from 1 to n. If someone is selling books by opening a bookstore and you are copying the principle, then you are going from 1 to n. You can sell books by an e-commerce portal or android application online, which will be the progression from 0 to 1.
Read the latest updates here.
If you wanna become successful then do something new and unique. Go from 0 to 1 which is also called as vertical progress. If you are making some changes by copying others’ ideas, it is called as going from 1 to n or horizontal progress. In this way, the chances of success are less and if you achieve then it may not exist for a long time.
In the business world, everything is changing rapidly. The next Bill Gates may not create an operating system. The next Zuckerberg will not create a social network and the next Larry page will not make a search engine. If you are copying others products then you are not learning anything. They have become successful because they made the progression from 0 to 1. This policy is adopted by top brands to grow their empire. They make a story of their product and start marketing before it comes to the marketplace.
Become a monopoly and avoid competition:
You are living in a society where there is full of competition. Our education system teaches children to compete from child hood. Because parents have coiled fear in their mind that their children may fail. So the children become adults, compete for jobs, compete for life partners, compete with neighbors.
The true fact is competition brings only loss. In education or business world competition is like poison. Competition is opposite of capitalism. One is related with generating profit while other is related in exhausting the profit. The more the competition in the business market, the lesser you will make profits.
The USA airline companies make the profit in billions. But In the year 2012 could make only 37 cents per passenger. If we compare it with Google, it had made a profit of $50 billion that year and the airline company made $160 billion. But Google had made 21% profit which was 100% more than the airline companies.
It happened because the airline companies were competing with each other and decreasing the ticket prices. But google used to dominate the market as a monopoly. Now Google makes 3 times more profit than all the US airline companies. Google can do this because it is a monopoly. If I say you to search something your first option will be Google without any doubt. If you wanna a big success then create a monopoly with your product or service and others don’t have the better option than you.
start with a niche market and dominate
Amazon is an e-commerce portal where you can get A to Z all types of things. But when it was started, it started from selling books with a small niche market of readers. Before amazon, the books were restricted to book stores only and people couldn’t find the books according to their choice. The publishers were also making a huge loss. Then Amazon started an online bookstore by making a 0 to 1 progression. People started buying books online according to their choices and Amazon made huge profits. After getting success from book business it diversified its products related to CDs, DVDs etc. Gradually it dominated all the markets.
When Peter Theil started Paypal, he didn’t think that people all over the world would start paying online. He focused on a small niche market of eBay users, where people used to pay by cheques. So peter gave an online solution as PayPal, where they began to transfer money easily and fast. It saved their time as cheque transaction was time taking. Then paypal started dominating the market by showing people the best online payment gateway. It became a billion dollar company.
To make your startup company successful, start from niche market and solve the problems of a small group of people where there is less or no competition at all. Cater the best service and gradually dominate the related market by expanding.
Better to be a small fish in a small pond and become big than becoming a small fish in a big pond, where the big fishes will finish you.
Many think that to start a successful business they need a powerful strong idea. They will suddenly get the idea one day and start their startup. They will execute the idea by their hard work and one day become millionaire or billionaire.
Just like the Facebook idea of Mark Zuckerberg or video sharing idea of 3 employees of PayPal. But the damn true fact is these are all only myths. When Youtube was started it was a dating site not a video sharing site. Before Facebook, Mark Zuckerberg created a hot or not game site. It was not his first idea. 90% of the first ideas don’t give you success.
They make it successful by gradually replacing and modifying the idea according to users requirement. Startup is not about working on a brilliant idea and becoming an overnight success. Startup is an experiment based on research for handling of extreme uncertainty, where you have to test and learn continuously to get the desired results. It is such an experiment where you don’t know what output you will get.
The secret of Startups’ Success
Crazy egg cofounder Neil Patel, who is the most successful online entrepreneur of USA, raised a fund of million $ to work on a brilliant idea. It was highly appreciated by investors and his team started working on it. The idea was to create such a product, which can solve the problem of social media traffic for companies. They invested $ 1 million and a year in creating the product. They launched the product but to their great surprise, no company showed interest to buy their product. The companies didn’t need to buy the product as they were happy to work in their old style. Neil Patel and his team wasted one year and $ 1 million in making a product, which was not the need of any company.
I have told this story as it is the reason of the failure of most of the startups. People work on the ideas to convert it into reality using all technical tools, time, money and energy to create a product that is no need of anyone. No doubt they like the product but they don’t know whether it can help people or solve their problems. Most of the start-ups fail within a year, because they don’t make the right products that people need.
To make your startup company successful, you need a great vision
So the question is whether you can build the product or not but whether you should build it or not. Most of the startups fail because they work on conventional management. That is research the market, making great strategies, delivering a great product. This sounds good but not for a startup.
Startups can’t assume their product in the market, till it is being actually used by users. That’s the reason of the failure.
Lean Startup Method
But the good news is these failures can be avoided by using lean startup methodology. Using this method you can make your startup successful by saving your time and money. It is based on the principle of build, measure and learn.
According to this method you have to make a minimum viable product and launch that product as the trial basis. Then measure the customers’ response and learn whether your idea is effective or you need to make some changes for better response of customers’. Then build the product again and repeat this cycle until you get the desired response from the market.
You should make a minimum viable product (MVP) which should have 2 or 3 key points which you think will attract customers using the minimum money to make it. It should be for the purpose of testing and measure whether it is effective and responsive or not. Make it with a cheapest and fastest way.
Make sure that your MVP is not the final product. It is for the testing purpose to cover the critical points and the feedback. It will help you to learn about the product development and sales. In this way, you will get two ways pivot and persevere. If you are getting positive feedback and good response then you should work on it and modify it by making it better. If you are getting the negative feedback then pivot it by executing your idea in a different way by targeting different audience or making different products.
Kevin Systrom and Mike Krieger developed an app named as Burbn, which had the elements like mafia wars and photo shoot. This app was not getting so much response and Kevin knew that it wouldn’t be a huge success. After measuring and learning, he identified among all the features of the app people used to be most engaged were the photo element. Then he took the risk with his co-founder Mike and eliminated all the features of Burbn except the photo element and started modifying it. As I am an internet Entrepreneur, I have cited the examples of people who have excelled in the field of information Technology. But the concept is same for industries like manufacturing, education, retail.
After this pivot, it became the most popular app which is famous as Instagram. Like this, before getting your desired results you may have to do a lot of experiments. When the startups don’t get their desired results they quit and some use the don’t quit formula to expect the results. But they don’t get any desired results. When the fund exhausts the game is over. Sometimes a pivot is necessary for your startup success, which most consider as a risk. Make sure that how many pivots you can handle before running out of the fund. The customer is the king and everything you do is to make them happy.
Create Liquid Network:
If I ask you where do great ideas generally come from? Then most of you may answer from the research labs where people perform various experiments. But the true fact is, most ideas are not generated when you do the research alone in the laboratory or in your office. The best ideas come from where a group of people discusses on a topic with each other like in a coffee shop.
In Britain ideas and innovations began to increase when people started drinking coffee in the coffee shops instead of going to the pubs. They used to share their ideas and thoughts with people from different fields while drinking coffee.
That’s why you must create a group or network, where you can share ideas and thoughts with different people. Better you keep the network diverse so that you can discuss with people from different fields. In this way, you can get different perspectives to evolve your idea into a great one. The great ideas in the world were not generated alone, but by discussing with people and adding other ideas or modifying old ones. Create a group where you can share and discuss ideas instead of gossiping and sharing rubbish things.
‘ Small minds discuss People, Average minds discuss events,
Great minds discuss ideas.
- Eleanor Roosevelt
Discussing and sharing the simple ideas can be transformed into great ones. Yep, it is true and tested. It is simple like sharing your knowledge, where the knowledge grows. Some people freak out sharing ideas anticipating it might get stolen. But don’t fear even if someone copies it he can’t execute.
Break the pattern:
When a person repeats the same task everyday, then his brain can’t innovate new ideas as it limits to some specific kind of tasks. But when he breaks the pattern, do something new like visiting new places, or mingles with new people then his brain starts functioning in a new pattern. In this way, there are more chances of generating new ideas.
Ideas generally evolve over time as slow hunches:
Don’t be in the misconception that great ideas come in eureka moments. Most great ideas take time to generate with a slow and steady process. Tim Berners Lee got inspired from a book and after working for 20 years on the idea to make world wide web which is the important part of the internet. What you are using now. Start taking action with a simple idea and as time proceeds your idea gets innovation and a new direction or at least you get a better idea which will make you successful.
Hope you like ‘How to Find the great business ideas to start a startup company successfully’. If you have any queries drop your comments below and share this knowledge.