Startup Idea Generatıon - Problem-Based Business Ideas
A business idea is the first step and a misunderstood element for startups. By looking at today’s successful startups, it may seem like all these ideas are brilliant, and a successful startup should start with a brilliant business idea. For sure, entrepreneurs feel better if they think their idea is better, but there is no need for a brilliant idea. A simple idea base enables entrepreneurs to work on it and come up with a completed equation of a new business with its subject and business model. In this article, I’ll show you how to find a viable problem-based idea and turn it into your startup’s one-liner.
Problem or Need
Problem-based startup ideas make up the majority of the strategies used to come up with a startup idea. You may think, “Don’t they have to solve a problem anyway?” But instead of solving a problem, they can also fill a need to create value by being benefit-based. It can even be done by offering different business models for already-solved problems to make them better, which are benefit-based business ideas. One of the most commonly used examples in this case is Uber. The story started with the founders’ question about how ordering a limousine by using a mobile phone would be great.
Problem-based ideas have the majority because there are a lot of so-called problems attracting our attention, and people tend to invest their time and money to solve them to avoid pain. If the aim is to come up with a startup idea that will be the next unicorn, the problem you are solving should be one that people think is worth fixing.
For example, fixing a broken water pipe is always worth investing time and money. However, it is a problem that occurs with low frequency, and people may not want to invest beforehand.
You should follow the steps to come up with an idea that is worth fixing for people who may be your early adopters.
1. Identify Problems
The first step seems to be the easiest one. The only thing you need to do is write down the problems that come to mind. It is not a one-time task. It is a habit.
2. Mark the problems as “major” and “minor.”
After you’ve written down as many problems as you can, divide them into major and minor issues. You can determine the majority of the problem according to the pain it causes.
3. Investigate your rivals
Search for the current offerings for the solution and check if there is a company that aims to solve this problem.
Don’t worry when you find a company that aims to solve this problem, even if the market has formed recently and has years to be saturated. Write down these companies for competitor analysis, which you will perform if the following steps are completed. The world is huge, and there is no guarantee that they will execute it well. And, be happy that there is a market for this problem and that some competitors around the world are waiting for you to copy their model, which has already been validated.
Remember that Google was the 20th search engine when it first launched, and try to name the ten search engines you are familiar with today.
4. Ask Others: Do They Have the Same Problem?
Ask your friends and family what they face with the same problem and how they overcome it. Also, the problem can be faced by businesses. In this case, you should try to ask them. People’s and companies’ behaviors and alternatives to solving these major problems are also your competitors. For example, when the Turkish unicorn Getir began last-mile grocery delivery in Istanbul, Turkey, its main competitors were small grocery stores that collected orders via phone calls and delivered goods via couriers, as well as people’s habit of going grocery shopping on foot (or forcing the youngest to go).Collect the data that people identify as a problem or not and their methods to overcome it, then evaluate it. If they do not evaluate this as a problem, try another group (maybe people like you) that is more likely to face this problem and collect new data. If you find a focus group that identifies it as a problem, try to get to know them better. The inefficiency of subway lines is a problem for people commuting via them, not for those who commute by personal cars.
5. Be sure it is a top-tier problem.
After locating a group that recognizes it as a real issue, ask them to prioritize it and rank its pain on a scale of 1 to 10.
6. Evaluate the data
Evaluating the data necessitates analyzing and expanding on the people who identify it as a top-tier problem.If the group seems like a niche group, don’t worry. It is better to have “some” people who identify it as a real problem than a large number of people who identify it as a problem with little interest in solving it. If lots of people mark it as a real problem, it is most likely solved already, it is a highly competitive market, or it is so expensive to solve the problem.
And…
After all of the steps have been completed, you have a problem, and the subject of the problem is your target users.To have a complete idea, the last point is the business model that fits your subject and problem. The business model part will be covered in the following articles of the series.
