How to Know You’re Onto Something
Tips for ideating startups and seeing through the fog
So you have an idea. You’ve shopped it around a bit… and unfortunately met some resistance. Is it time to give up? Well, that’s what I’ll be talking about in this blog post. How do you know if you’re onto something despite others not believing in you?
Before we go any further, let me mention that this article is mainly for ideas that get resistance for being “too big”, “too hard” or something in that realm. There are a MILLION reasons why startups fail from co-founder conflict to running out of money, but if people are telling you you’re running the risk of encountering these obstacles you may want to listen.
The first thing to keep in mind is that 9 out of 10 startups fail. And no, I am not saying that to depress you, I am saying this to emphasize that no one who tells you you can’t is telling you that because they want to see you fail. Telling you it’s a bad idea that won't work is the correct advice 9 out of 10 times.
But what if you’re different? Here’s how to know:
- You are solving an incredibly hard problem. This is a classic one. No one else started it because they thought it would be too hard. Maybe there are too many regulatory obstacles. Maybe it’s too technologically advanced. Think back to Stripe: no one else had started an online payment system because they didn’t want to jump through all the regulatory obstacles, but Stripe did. This type of problem may seem obvious, and many people may know it needs solving, but few are willing to actually start solving it.
- You know something other people don’t. Maybe you are a researcher at a university and just stumbled across something special. Maybe you are at the forefront of a new trend that you know will be big in the near future. Think back to Airbnb: no one thought this was a good idea at first, but the founders knew something different. If any of these are true, that is a good sign.
- The problem couldn’t be solved in the past (which is why everyone is telling you it will fail), but now is the right time to solve it and you know it. Maybe it’s a new technology development. Maybe it’s a new regulation that was just passed allowing companies to do something new. Think back to the legalization of weed, or the legalization of online sports betting (which is still in progress): new regulations were passed to allow a new type of business to operate. If this is the major objection you’re getting yet you know that it actually is possible, this is also a good sign.
These are some of the common pieces of advice that will have those around you immediately write your idea off.
But who you’re talking to is also an important factor to consider:
- If you are talking to VCs, remember that they pass on almost every company that comes across their desk… and most of their investments still fail. But also remember that they know a lot about what commonly makes startups succeed and fail (Key word here: commonly). Listen to why they think you’re going to fail. If you have answers for all of their points, keep moving along. If you don’t, think long and hard about why you think those ideas don’t apply to you. This has a lot to do with having a unique perspective and the bet that your company is making. When VCs told CEO of Coinbase, Brian Armstrong, that his company would never make it because Bitcoin is stupid, has no intrinsic value, or that they just didn’t understand it, he knew to ignore that advice because that was the bet that he was making. If a VC says no because they are not willing to make the same bet on the future that your company is making that doesn’t mean they’re right, that just means they have a different perspective of the future than you (and no one actually knows what the future hold). This would be a good point to mention that every time you receive an objection, you should work on how you are going to convince otherwise when you meet this criticism again.
- If you are talking to someone who is not an expert in the vertical you’re tackling, take everything with a grain of salt. This also applies if you are talking to someone who is non-technical and says “it can’t be built” or “it’s impossible”. This one is pretty self-explanatory.
- If you’re talking to someone who is in your field but failed, also don’t put too much stock in this. They clearly misunderstood something or may just not want others with similar ideas to succeed if they couldn’t make it work.
Talk to people who have built things similar to what you are building and have succeeded at it.
So, what parts of these conversations should you listen to?
- Listen to their objections and prepare to have a fantastic answer next time you hear that feedback.
- Listen to their “classical startup advice”. If you aren’t following the classical startup advice that’s out there in best-selling books, talked about in Y Combinator videos, etc. you better have a damn good reason you aren’t following it.
The main point of this article is that many people don’t understand a startup before it’s mainstream. Like Geoffrey Moore’s “Crossing the Chasm” only around 13% of people are going to be early adopters, and the people you are talking to when it’s just an idea have to understand it even earlier (the 2.5%) — nearly an impossible feat.
So, understand that you are fighting an uphill battle, keep strong in your vision for the future and the bet that your startup is making but, as Jeff Bezos says, “Be flexible in the details.”
You shouldn’t put your blinders on and tune out everyone you talk to who doesn’t think your idea is a good one.
The goal is to see through the fog, not close your eyes.
In fact, you should be paying special attention during these conversations. Startups are hard, and everyone is going to have something to say about your idea. Learn how to take some in, tune some out, and stay steadfast in your beliefs.
If you liked this and would like to read more, check out my latest blog post: The Bad Startup Advice Everyone Loves to Give!
About Me!
Hey y’all!👋 My name is Luca. I’m a Partner @ Crescent Fund🌙 and a student @ UCLA. I love building, brainstorming🧠, and absolutely everything having to do with the startup world🚀.
Feel free to reach out to me via LinkedIn, Twitter, or my email — always happy to chat!
