How to Develop a Great Startup Idea

December 24, 2018

 

 

How do you come up with the next idea like Mark Zuckerburg with Facebook, Elon Musk with

 

Tesla, Brian Chesky and Joe Gebbia with AirBNB, or Garrett Camp with Uber? I have been asked

 

many times how to come up with a great business idea. After more research I believe this is one

 

of the biggest barriers to young entrepreneurs. It all starts with the idea, but how do you come up

 

with the next great thing?

 

 

Businesses Solve Problems

 

A useful tool is something that solves a problem. A few years ago someone was frustrated by not

 

being able to join two boards, so they invented a nail and figured out something to use to drive

 

that nail; the birth of the hammer. The real challenge of a great idea is making it personal. It isn’t

 

finding just some problem to fix, it is finding the problem that you would love to fix.

 

 

Keep a “Problem Journal”

 

Carry a small notebook in your pocket. Every time you come across a problem write it down.

 

Examples are “I hate scraping my windows” or “I hate sweeping” or “I hate waiting for taxis” or “I

 

can’t pay rent” or “I hate hotels”. There are so many problems in the world, large and small. Just

 

consciously thinking of these problems as opportunities has led to great companies and products

 

like Roomba, Uber, and AirBNB (the latter two being billion dollar companies). This all possible

 

because of an idea!

 

 

Solve Everyday Problems

 

About ten years ago, before I had the guts to go for it in entrepreneurship, I had a great idea. I

 

lived in Wisconsin. They call it the frozen tundra for a reason. It was the middle of the winter and it

 

just dumped about 8 inches of snow. As I was trying to warm up the car enough to de-ice the

 

windshield so I could scrape it, I thought “wouldn’t it be awesome have something that you could

 

just lay over the windshield before it snows that you could just pull off when you are ready to leave

 

in the morning and never have to freeze your hands off as you scrape a window again?” But I

 

never acted. This is a real problem and I thought of a real solution, but never tried to build a

 

prototype to test the idea, something that would have cost me less than $50 to do. I have recently

 

seen products on the market that do this exact thing. $50 and no follow through cost me

 

potentially the opportunity of building that great idea into a very successful business.

 

Take your ideas from your journal and read through them. Which one drives you crazy? How can

 

you fix it? If no great idea comes to you, go to the next one. Make drawings and follow through on

 

testing your idea by building a prototype and using it yourself. Make changes to improve your

 

solution. The point is solve YOUR problem first, then work on solving it for others. If it’s a common

 

problem your potential customer base is huge and people will easily identify with your offering.

 

This is how the unicorn businesses of Uber and AirBNB came to be.

 

 

Find a Problem You’re Passionate About

 

Business is not easy. You need to enjoy your work and feel passionate about the problem you are

 

fixing so you can sell your idea to others. I mean sell in the literal sense and the figurative. You

 

have to build passion for your idea in other people, get their buy-in the problem and solution.

 

So, what problem to you hate to face every day? What drives you bonkers? (Yeah, I’m bringing

 

back bonkers.) This passion is the key to the rest of the development. You have to have

 

something that will drive you through in the tough days of building the business. Yes, there will be

 

tough days, but so many more great ones if you love your idea!

 

 

Create A Problem

 

Some of the greatest startups come from problems people didn’t even know they had. It’s

 

innovation. Many entrepreneurs fail to come up with a great idea, because they don’t even really

 

consider what is possible. To know what is possible, one must learn and expand their context. I 

 

am primarily a real estate guy and I can solve a lot of problems because I have studied a ton. I

 

know the perceived limits and I love to push them. That is what a great start up does. You have to

 

push the limits of something you love.

 

 

Innovate and Challenge the Status Quo

 

Some great examples of my point are Microsoft, Apple, Facebook, and Tesla. What do all of these

 

companies have in common? Innovation and being one of the originals in their market. They

 

created a problem and solved it. Before Apple and Microsoft, people were just fine working they

 

way they did. The status quo was comfortable, but once these men that were crazy enough to

 

conceive of a world with a working computer sitting on every desk in every office in the world.

 

This computing power was not just limited to large corporations any more. Now a small business

 

can compete with large ones. Look how this one idea changed the world!

 

 

LEARN, LEARN, LEARN

 

You have to be committed to the idea enough that you are hungry to learn everything about it.

 

This is the most important part of the puzzle. Doing a lot of research and learning to expand your

 

context is like building the edge of the puzzle first: it gives you the basis to build everything else.

 

You have to learn the market. What retailers would carry your product (if physical) or how you will

 

get it in the hands of as many people as you can so you can solve the problem for them? Who is

 

your ideal customer? Who are your competitors? How much would you pay to solve that problem?

 

Go out and ask people. Start with friends and family, but then get out to malls or areas where your

 

ideal customers would hang out. Read books, magazines, and online articles like this one to

 

continually improve your knowledge. I will write another article on this another day.

 

 

The most useful startup idea is one

 

    1.you love

   

    2.that solves a problem that drives you bonkers

 

    3.that you can produce on a large scale.

 

 

I hope you have enjoyed reading this as much as I have enjoyed writing it. Just remember,

 

people want their problems solved. Do that and you will have a great business!

 

 

 

 

 

 

Please reload

Recent Posts
Please reload

Miro - Mousepad.jpg