How to Find Startup Ideas That Work
by Gregor Satzinger, Founder
If you’re thinking about starting a business, you’ve probably heard phrases like:
- “Ideas don’t matter, execution matters.”
- “We don’t invest in ideas; we invest in people and teams.”
While there’s some truth to these statements, they don’t tell the full story. Yes, execution is important, but the problem you’re solving is the key to everything. The problem is the foundation for your entire business.
In the beginning, you might not have a fully formed solution—and that’s okay. Your idea will evolve over time as you get feedback from customers and test your product. But from the start, you need to focus on a specific problem. Without clarity on the problem, you might end up going in too many directions and never go deep enough in one area.
Everything Starts with the Problem
Before you worry about building a product, reaching customers, or making money, everything starts with the problem you’re solving. Your market, your customers, your product, and your business model all come from the problem. That’s why it’s important to validate the problem first.
Once you’re sure the problem is real, then you can focus on the next steps:
- Reaching Customers: How will you find and keep customers? Your marketing strategy will depend on the problem you’re solving.
- Building a Product: What will your product look like? The product should directly address the problem.
- Creating a Business Model: Can you build a business around this solution? The demand for your solution will help shape your business model.
Validating the problem gives you a solid base to build a product people want, find customers, and create a business that can grow.
6 Questions to Validate Your Problem
To make sure the problem you’re solving is worth it, think about these six key questions. This will help you figure out if the problem is big enough and if your business can grow.
These questions are a quick way to test if your idea could turn into a successful startup.
1. Is This Problem Common?
The bigger the group of people facing the problem, the bigger the opportunity. If a lot of people have this problem, your solution could reach a large market and grow quickly.
2. Are Existing Solutions Too Expensive or Inefficient?
If there are solutions already out there but they’re too costly or don’t work well, there’s a chance to offer a better alternative. People are always looking for more affordable and effective ways to solve problems.
3. Is This Problem Growing?
Some problems get worse over time due to new trends, technology, or changes in society. These problems are often great for long-term business opportunities because the demand for solutions will keep increasing.
4. Is This Problem Urgent?
Some problems need quick solutions. The more urgent the problem, the faster people will adopt your solution. Problems related to safety, health, or money tend to be more urgent, and people are more likely to act fast.
5. Is This Problem Driven by Regulations?
Sometimes, changes in laws or rules create new markets. If your solution helps people meet new legal requirements or industry standards, you could tap into a market that needs your product right away.
6. Is This Problem Something People Face Often?
If the problem is something people deal with regularly, you’ll have a steady stream of customers. Recurring problems are great because they lead to repeat business and reliable revenue.
Examples of Successful Startups
Successful startups often check off at least three of these boxes. Here are a few examples:
-
Airbnb:
- Common: Many people need affordable places to stay when they travel.
- Expensive: Hotels are too expensive for many.
- Frequent: People travel often for business or leisure.
-
Uber:
- Urgent: People need quick, reliable rides.
- Expensive: Taxis were often overpriced and hard to get.
- Frequent: People commute regularly or need rides often.
-
Zoom:
- Growing: Remote work and virtual meetings are becoming more common.
- Mandatory: Video calls became necessary during the COVID-19 pandemic.
- Frequent: Businesses and individuals hold video meetings all the time.
These companies saw real problems that checked multiple boxes, which allowed them to scale quickly and build long-lasting businesses.
Final Thoughts
When you’re thinking about starting a business, begin by validating the problem you’re solving. If your problem checks off a few of these key areas, you’re likely onto something with great potential. Once you’ve confirmed the problem, the rest—product development, customer acquisition, and building a business model—will be much easier.
Remember, execution is important, but without a clear problem, your execution might struggle to find the right market.
These insights were inspired by a Reddit post (How to Find Business Ideas That Don’t Suck), which we found incredibly valuable for anyone looking to start a business.