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Be passionate about your problem

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Dubbed as the next Mark Zuckerberg, Ashwin Gowland, a six-year old, gap-toothed boy, blew everyone away at Seattle Startup Weekend. Gowland started his one-minute pitch by clearly stating the problem: “One day Mommy went to an event and put a name tag on. But when she came home she forgot to take it off and then threw it in the wash. But the sticker never came off and ruined her favourite shirt.” With this, Gowland came up with stickers that can be dissolved when exposed to water.

What Gowland did so well was to start his pitch by clearly stating the problem before describing a solution to the problem. The biggest mistake people make when pitching an idea is not painting a clear enough picture of the problem. What is the bleeding neck problem? Who does it affect? What is the result if the problem is not solved?

A common trap for entrepreneurs is to fall in love with their solution. There are many ideas out there in the world. There are ideas for mobile apps, websites, social tools, new gadgets and gizmos. Steve Poland, a serial entrepreneur and a writer at Tech Crunch, pushes this point further by listing out 100+ web startup ideas. But, all of these ideas are nothing if it’s not solving a problem.

Ash  Maurya, founder of WiredReach and Spark59, experienced this: “a common trap for entrepreneurs is falling in love with their solution. I did this with my first company which was built around a technology vision. After our first attempt at solving a customer problem failed, we kept building more. Over time, we became a solution looking for problems and the legacy of our solution became a limiting constraint,” he said. “With Spark59, I took a completely different path. I fell in love with the problem instead. That simple mindshift allowed me to more freely experiment with all kinds of solutions and only keep what works.”

When there’s a cool, new idea, people almost have this knee-jerk reaction to just start building it and become a copycat of a trend. Consider 148Apps’ breakdown on the number of iOS apps in the App Store by category. As you can see, Games, Books, and Entertainment apps dominate in terms of sheer numbers. That’s because with the recent trend in Angry Birds, Temple Run or Zombie Sweeper mobile phone games, developers perceive a demand.  “Hey, people love games, so I guess I’ll build a Fruit Ninja for ice cream fanatics” This type of thinking leads to nowhere.

Focusing on the problem also helps you determine if the problem is big enough to solve. You want to make sure that you need to look at the following three aspects:

  1. You are tackling it for a sizable market
  2. People are willing to pay for your solution

You can spend thousands of hours each year trying to think of the next big thing. You might be out there looking for that one great, billion dollar idea. But the reality is that an idea is worthless unless it’s solving a problem. If your idea isn’t the solution for a problem, then you need to reassess your business plans. Customers are more likely to open their wallets and pay you if what you’re offering is a solution to an annoying problem.

Be passionate about your problem

Be passionate about the problem. Instead of brainstorming for ideas, brainstorm for problems. Having a problem to solve focuses your energy, resources and time. Once you’ve identified the problem – you can truly start searching for a possible solution.

Filed Under: Startup Tagged With: ideas, lessons learned, problem, solution, startup

How to Build a Billion Dollar Startup

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A few weeks ago, Steve Blank, a Silicon Valley-based retired serial entrepreneur and professor of entrepreneurship at UC Berkeley and Standford, wrote a blog post on how to build a billion dollar startup. In his post, Blank classifies the value proposition in a billion dollar business model into either one of two categories:

1) It solves a problem and gets a job done for a consumer or a company (accounting software, elevators, electricity, electric toothbrushes, email software, etc. ). Some examples of successful startups in this category are Dropbox, Evernote and Mint.

2) It fulfills a fundamental human social need (friendship, dating, sex, entertainment, art, communication, blogs, confession, networking, etc.). Some examples of successful startups in this category are Facebook, Twitter and Instagram.

The typical formula to create a successful startup is to find a solution for a bleeding-neck problem that really annoys enough people. That’s usually true. I’ll talk about that some more in my next post.

I find the second category for value propositions of billion-dollar startups interesting. If you look at Facebook, Twitter and Instagram, they really don’t solve a bleeding-neck problem. So, why have they become so successful?

Is It a Problem or a Need?

The 5 stages human motivations generally move through: Physiological, Safety, Belongingness and Love, Esteem, and Self-Actualization.

What Facebook, Twitter and Instragram fulfills is the basic human need to connect with another person. In 1943, Abraham Maslow, a psychologist, proposed that  human motivations generally move through 5 stages: Physiological, Safety, Belongingness and Love, Esteem, and Self-Actualization. Once our physiological and safety needs are met, we now look for social needs. We have this need to be accepted. We have this need to belong, whether it comes from a large social group such as clubs, religious groups, office cultures or more intimiate connections such family, close friends and love partners. We have this need to connect with other people.  What Facebook, Twitter and Instagram have done so well is to bring this social need to the digital world:

Facebook takes our need for friendship and attempts to recreate that connection on-line.

Twitter allows us to share and communicate in real time.

Instagram allows us to share our pictures in real-time with friends.

What Facebook, Twitter and Instagram also offer is a digital platform for people to feel accepted. Don’t you feel good when you realized you have a lot of friends on Facebook or followers on Twitter? Don’t you feel great when you post something witty or clever on Facebook or Twitter and someone liked or re-tweeted your post? No one would admit it. But it’s in the back of people’s mind. “I hope someone re-tweets this or likes this post.” :)

This is why Facebook, Twitter and Instagram have become so successful: They provide another platform where people can connect, belong and feel accepted.

Focus on the need

So, if you’re working on a startup that’s focused on fulfilling a social need, ask yourself the following questions:

Are you trying to build a community where people feel a sense of belonging?

Are you trying to provide a platform where people can feel accepted?

Are you trying to connect people together?

Make sure your value proposition is clear to your users. Your product should also reflect your value proposition. Focus on what brings your users back to your website. Focus on fulfilling that social need, whether your trying to build a platform where people can connect, belong or feel accepted.

Filed Under: Startup Tagged With: billion dollar, entrepreneur, entrepreneurship, facebook, like, problem, social need, solution, startup

About Me

I believe the only way to do great work is to love what you do. That's why I use my time to work on problems I love that have the potential to make a dent in the universe. To bring that vision to life, I take on different roles that make me like a swiss army knife for startups - customer developer, coder, hacker, hustler, digital strategist, marketer, leader. More

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