Having new business ideas is exciting. You’re excited about the technology you’re using and you’re sure its use can bring positive changes to the world we live in!
Every day, we see new ideas emerging. A lot of entrepreneurs have great business ideas and with them, they want to launch their own startups.
While we see some of them succeed, there’s a big number of startups that fail. In fact, 90% of startups fail, 20% failing during the first year after they’ve launched.
So, why is it that we see so many startups launching but just a few of them succeeding?
While there are many reasons, like finance problems or team problems, here’s what happens: many startups don’t pay attention to product/market fit.
Having new tech ideas is great but launching a startup is not just about having great technology behind it, it’s about using that technology to solve a problem.
The truth is, it was never about technology. It doesn’t matter what technology you’re working on, if you’re developing a unique algorithm, or if you developed an AI that can accurately predict the future. None of that matters if nobody is willing to buy or use your product.
This is why it’s important to validate your idea from the beginning.
A very popular way to do this is by using Lean Startup methods. Lean Startup methods are used by startups because they let you innovate faster, by using fewer resources. The idea is to develop, prototype, learn, validate, and improve business solutions as efficiently as possible.
Idea validation starts with empathy.
Why empathy? Because idea validation doesn’t mean that you’re sure your technology will work, but that it works for the people who will use it - and that it solves an important problem for them.
It’s super important to have a phase of problem validation before even starting to work on any solution.
Validating your idea completely means that you have to look for a real, poorly-met need that can be found in a reachable market and, once you’ve found it, making sure that you’ll have customers that’ll accept your solution and pay for it.
This is the so-called product/market fit: finding a good market with a product that can satisfy its needs.
An approach we love and we recommend to dive deeper into your customer needs is the Jobs-to-be-Done framework. People buy products and services to get a job done, so this framework will help you understand which job your customers want your product to fulfill.
According to this framework, customers are trying to get three different jobs done:
The idea behind this stage is to really, truly understand what customers want. It starts by completely understanding their problem and knowing what job they’re hiring your product or service to do.
When thinking about validating your idea, you also need to think about your competitors or potential competitors.
When breaking into a new market, you need to understand what others are doing and, essentially, where you stand next to them. Also important, you’ll further validate your problem. If your competitors aren’t at least trying to solve the problem you’re trying to solve, is there a market for your idea?
Especially in hot industries like blockchain, it’s very important to do competitor research after you’ve validated your problem. Many startup founders think they’re bringing innovative solutions to the industry and that, because of that, they don’t have any competition.
That’s not true.
Every startup has competition and, especially in hot areas like AI or blockchain, the competition might be not using blockchain to solve a problem, but they’re already solving it.
You need to ask yourself: why is my technology a better way of solving this particular problem?
Finding that sweet spot in the market where people will want to buy your product might be difficult, but you’ll also be surprised about the number of needs that are currently unmet. Sometimes you don’t need to come up with a super disruptive solution that will change the world as we know it.
This brings us to the next point.
Finding a problem that’s worth solving is essential. But, afterward, you’ll need to know how you’ll solve it.
This is where a lot of startups get stuck.
You don’t want to be selling what others are already selling. Competitive intelligence can save you a lot of time in this sense, as we explained before. After doing some research, you’ll know what others are doing and how.
Learning from others will save you a lot of time! Startups need to adopt the best practices to innovate better.
Many entrepreneurs get into business thinking that they have to be disruptive and invent something that has never been seen before. In developing new features, new technologies, and trying to fix problems with very complex solutions, they might be wasting valuable resources.
Instead, startups need to realize that they don’t have to disrupt to be successful. There’s a better, more effective way to launch a business.
Focusing on solving a new problem is the first step. Then, after knowing what your competitors are doing, you can learn from their tactics and adapt their good practices to your own business. Remember, it’s not about copying their practices, it’s about adapting them to work for your startup.
A big part of having a successful business is accepting that others have launched successful businesses before and using that to your advantage.
A lot of businesses (your competitors included) already have great practices. Why not accept that you can learn from them instead of trying to reinvent the wheel?
When you accept that you can learn, adapt, and adopt good practices from other businesses, you can leave more time for innovation. You can focus on solving a new problem and pay attention to the business side of your startup.
This is something we want to solve with iSearch.ai. This tool can help you find your competitors and avoid reinventing the wheel by learning the best practices from your competitors.
By using tools like iSearch.ai, you can better understand the problem you’re trying to solve. And, if you consider the jobs to be done approach, you can also build iteratively to extend the features of your product with related jobs to be done, as we mentioned before.
Many competitive intelligence tools don’t include patents in their analysis. We think that if you’re not paying attention to patents, you’re missing a big part of what your competitors are doing.
Patents are important because they not only protect your ideas but your market. Every time that a big company patents an idea, they’re essentially blocking others from the market on that particular idea.
Many startups don’t pay attention to patents because they think they’re just for big companies. That’s not true. Patents are especially useful for smaller startups because they can give them a place at the table with big companies.
Also, if startups are not protecting their intellectual property or at least conducting a patent search, it’s possible that they’ll launch an idea that already exists and is already protected.
Early-stage ideas are amazing because you can build upon them. But, be careful. As cool as it is to have new ideas and to start working on them, you need to be sure you’re serving your customers. Furthermore, you need to be able to answer why your idea is the best idea to solve their problems.
Startups need to understand what job their product is doing for their customers. Not only in a practical way, but in an emotional way too.
If you want to succeed as a startup, start with a problem to be solved. This problem needs to be real and it needs to have real customers that want a solution for it.
Also, you need to know where your idea stands against the competition. You don’t want to work on an idea that has been better executed or that already exists as you conceive it.
Hearing about new startups is always great, we’ll never stop saying it. But, if these startups don’t find a real solution to a real problem first, they won’t be able to succeed. And, if these startups fail, we’ll be missing a lot of amazing innovations that have the potential to make this world a better place.
Use iSearch.ai to save time, reduce frustration, and validate your idea - free to try!
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