Startups are interesting, adventurous, and innovative foundations of our world. And for the last two decades, these sorts of companies have provided great value both for itself and its customers. Startups don't have as predefined definition such but like to describe them in this way :
From Founders Perspective
"Startups solve the problems with its ideas that the founders are crazy and thrilled about it."
2. From Investors Perspective
"Startups are the company that grows very fast because if it doesn't then it's just like any other business out there."
Your Startup idea is basically a hypothesis and it's your job to construct a reality out of it and basically a pitch in front of the investors.
What your startup idea should consist of?
Basically every startup is comprised of three parts and having a clear vision of these three parts is what makes a startup valuable and faster growth rate than Businesses. The three-part describing a startup is as follows:
Let's discuss them one by one in detail.
Any startup should begin by working around a solution for the problem that many people are facing and not the other way around (that tries to create a problem out of a solution). Any startup idea should consist of the following factors:
Popular: Your problem should be popular (I know that sound sarcastic) but yes it just means that there should be a large number of people who are facing that problem. It's sometimes also the case that founders are facing the problems themselves and that is even great. Because then you will try to solve the problem even more eagerly and then use that eagerness to provide the solution to the world.
Growing: Your problem should be growing that is you have some sort of high growth rate for the problem and more & more people will be going to face the problem in the upcoming days.
Urgent: Your problem should have an urgency to be solved because if it's not urgent then that means either people can live with it for some more time or sometimes they can find out the solution by themselves. And thus nobody will be that eager to spend some money and buy your product.
Expensive: Yes if you are solving a problem that is expensive to solve then you can really charge a good amount of money from people.
Mandatory: It does not mean that it's urgent to solve right now in this particular moment but yes it's necessary to solve.
Frequent: These are simply the problems that people will encounter again and again one day or another.
What are the Ideal problems?
The ideal problem should have millions of users or millions of people are facing that problem.
The problem or the market for the problem is growing at least 20% every year.
The problem is faced by people right now immediately.
They have the potential to cross the billion-dollar market.
People are engaged that is either need to solve a problem multiple times a day or using multiple times a day.
The best advice here is: "Don't start here" and what I mean here is that we should not think of creating a problem out of solution or from our certain form of interests to create a product and thus a startup.
I mean really as I too have done this mistake because after learning a lot of technologies like Flutter, Blockchain, React, etc and In an urge to become an entrepreneur I was doing this mistake to think like "I know so much technical stuff now, what kind of problem can I solve now".
And that's been a huge problem for me to not able to create a startup yet because it's like creating anything just for the sake of having a product to sell and that demotivated me in the end because I got less excited about it. And the more I learned the more aware I got that "always look for a problem to solve and not try to create problems out of existing solutions or your interests".
Remember this and you will not do such sort of mistakes ever: You should never look "Solution in search of a problem." Because if you work in this way then maybe it's not impossible to form a startup but it's very difficult to grow afterward. And if there will be growth then it will be very inefficient. So remember you should care about the problem, not about the "any other means that you are interested about".
This is indeed a tricky one because this is what tells you that "Why are you going to win other than anyone else?, Why you will be the fastest one to grow?", etc. This is what makes investors to believe in you other than anyone others in the market.
This basically tells us about the "Unfair advantages we have that others don't and are relatable to growth". This is the reason people will choose you above others and the reason which will create a sense of belief in your customers and also the stakeholders.
What are some Unfair advantages that you can look for in your startup?
A startup doesn't need to have all such unfair advantages mentioned below but it's always good to have at least one or multiple of them and it there are all then you are definitely way ahead than others. Let's have a look at those advantages:
Founders: Founders are in the top 10 people in the world who can make that product happen. And if that's the case then there is a high probability anyone can copy your idea for a longer period.
Market: It's good to have the market growth for the problem space at least 20% a year and thus your company will perform better than average. But remember this should not be the only advantage you have otherwise you will become market dependent and when market changes then you may face diffculties.
Product: Your product should be 10x better than others in the market because then it will take will take your competitors a large amount to successfully compete with your product.
Acquisition: In this you should have the answer to the question "How to grow successfully without actual advertising," and how you can attract customers with such paid acquisition. Word of mouth growing is actually a great way to grow because your potential customers are liking your product and telling others in their connection to use the same.
Monopoly: If a company becomes a monopoly then it becomes difficult to defeat. It can be due to network effects, market acquisition and if these are good then that startup is covering a large number of potential customers and thus become quite strong both my product and value of the company and thus difficult to replace and compete successfully.
Now you! Try to answer those questions about problems, solutions, and insights. Figure out where are those holes and then fix them. Then find What you need to work on? and how to work on it? and when you find the answers then you are ready for the Entrepreneurial journey.