One of the major challenges for many would-be entrepreneurs is coming up with their first business idea. Sadly, there is no good “idea generation” method out there. At best, some entrepreneurs get bland advice such as “just be creative.” Although given with good intentions, most advice seldom works. Instead, it just increases your frustration.
This article has a single objective:
- You’ll learn an effective method of developing viable ideas for your startup
Some background
Ever since I became an entrepreneur, the concept of generating business ideas has fascinated me. It has also vexed me, because I was bad at it.
Coming up with an idea for my own company was painfully difficult. Actually, I wish I had this method when I launched my startup ten years ago. Instead, I took the long and hard road. This experience is why I wrote about this subject in my series about college startups and why I am writing about it here.
No flash of inspiration? No worries
One of the most significant and common mental hurdles is the belief that entrepreneurs are different. They are inspired and creative geniuses, like Steve Jobs. This belief was a hurdle for me and other entrepreneurs I have spoken to. Honestly, I don’t consider myself a “creative” genius, certainly not in a “Steve Jobs” type of way.
I’ve discovered that generating business ideas does not require as much creativity as you think. As a matter of fact, most great ideas are simple incremental improvements of existing technology. Little “pure creativity” is actually needed.
Don’t believe it? Let’s look at two examples:
Apple’s iconic iPod® is considered a piece of pure creative beauty, but it was hardly a new concept when it was launched. As a matter of fact, the market had a number of competing MP3 players at the time. Apple improved the existing concept and took it to a new level. They created a device with an awesome form factor. It also had great usability and a fantastic buying experience. Thanks to those improvements, they now own that market.
Consider Google’s search engine, its flagship product. Another flash of genius from a company admired for its creativity. Well, the technology behind search engines existed long before Google was launched. Actually, long before the Internet as we know it existed. Google simply enhanced the concept by adding an algorithm that used links and other signals as ranking factors.
Key takeaway: most great companies just enhance existing market solutions.
What should your business do? Solve problems
One detail that many would-be entrepreneurs tend to overlook is that businesses have a single mission: they solve problems. And businesses that are good at solving problems often do well. It’s that simple.
Consider any successful company and you will see a company that is good at solving problems. Look at Amazon, Google, Apple, or Uber. They all solve problems well. This fact is very important when looking for business ideas.
Key takeaway: problems equate to business opportunities.
Putting it all together – Getting the big idea
We have discussed two important facts. First, most great business ideas are not inherently creative. In other words, they don’t create something out of nothing. Instead, they improve on something that exists. Second, businesses have the singular task of solving problems.
In summary, you have to look for an existing problem and find a way to make it better.
The method
The method for coming up with one or many business ideas is simple: look for problems. Spend a few weeks looking for problems. Live your life normally but pay attention. If you encounter a problem in your personal life or at work, make a note of it.
Problems can be about anything. Can’t find a cab? That’s a problem (ask Uber or Lyft). If going to the grocery store seems like a waste of time, that’s a problem. Getting ahold of a doctor is difficult. Another problem. Write them down. You get the idea.
Don’t evaluate problems at this point. Just write them down.
Take this opportunity to ask people about their own personal and business problems. They will be happy to share their problems with you. Pay attention and write the issues down.
Selecting finalists
If you follow this process for a few weeks, you will generate a large list of problems. Most of them won’t be useful. Some may interest you, and one or two may be great opportunities.
Review your list of problems and evaluate each idea against your selection criteria. For example, here are some selection criteria I use:
- Does the problem interest you?
- Does it affect a lot of people/businesses?
- Would I pay to have this problem fixed? (this one is important!)
- Do you think you can you improve it?
Check your list of problems against the selection criteria. Discard any that don’t fit. If all goes well, you should have one or two ideas left. If you were really good (or lucky) you may a few of them.
Choosing a winner
Nine out of ten times, the winning idea is obvious to you. Every so often, you end up with more than one great idea. How do you choose? Consider working both ideas concurrently for a little while.
When I was first looking to start a company I had a couple of ideas that I really liked. So, I tested both. I did some research and started small operations to test the concepts. Eventually, one concept won.
Here is an example
I will finish this article by offering a quick example of how this process works. Recently, a family member was admitted for a week-long hospital stay. During their stay, I noticed that relatives had a difficult time getting in touch with the doctor.
Day-to-day communications were difficult. The doctor would make a daily visit to the room but never at a set time. If the family happened to be there when the doctor arrived, they got to ask their questions. Otherwise, they’d have to wait until the next day.
I asked around and other patients’ families had similar experiences. This problem affected many people. As far as I could tell, it also affected other hospitals.
The ramifications of this problem are important. Bad communications with the attending doctors often lead to poor choices. This problem has been around for a while. As far as I know, no one has solved it well. The scope and the potential are huge.
Now, if this problem interested me, I would start researching it. I’d look into how other hospitals cope with this issue. I would also start thinking of solutions to improve this. After a few minutes of thinking, I came with some possible solutions:
- Have doctors visit at a set time. Use a text message reminder to the family caretaker
- Develop a secure patient-doctor messaging app
- Create communication kiosks that would allow doctors and patients to exchange messages
- Develop a system to set 10-minute conference calls with caretakers once a day
As you can see, some of these solutions represent potential business ideas. Frankly, I am not sure if any of these solutions are viable. This problem is complex. However, this example should give you a gist of the process.