Helping startups grow. When people share ideas about startups, your job is not to make holes in the idea, but rather to figure out how you can profit and how they can become a billion-dollar company? From my experience, I graduated from Y-Combinator, which is arguably the best startup program in the world, and they have a great model for thinking and evaluating startup ideas, so in this article, we will talk about helping startups grow.
Helping startups grow
Startups are companies aiming for rapid growth, and startup ideas are the premise of why they can grow so fast.
When considering whether or not you want to pursue a startup idea, it’s a good idea to break it down into three parts: the problem, the solution, and the insights.
People should always try to start by thinking about problems.
In this way, your goal is to uncover the setting that allows your startup idea to grow quickly.
It also focuses your mind on creating the best value for people.
Novice investors look for problems that meet some or all of these criteria:
Common – Everyone or many people are experiencing your problem.
Growth – The market (demand) is growing so fast that more and more people are facing the problem.
Urgent – the problem should be resolved quickly.
Expensive – The problem is expensive to solve, which means that it is a multimillion-dollar industry for the minimum.
Mandatory – people with this problem need to solve it.
Repetition – People encounter your problem over and over again at frequent intervals of time. This is very important because it gives people a lot of opportunities to convert into customers.
The perfect startup for investors: With more than 1 million users potential, market growth of 20% year over year, the problem needs to be solved now. Needless to say, it also has the potential to make billions of dollars.
Some of the best ideas address problems that occur every hour or day, so ask yourself “Does the problem need to be solved today?”
Bonus: the law changes have inspired many great startup ideas!
Y-Combinator’s greatest advice to founders is to never start here when you’re brainstorming your startup ideas. Focus on the problem. Do whatever it takes to solve people’s problems/problems.
Since we’re starting with the hypothesis startup idea, we first need to consider the problem.
Next, we go out and test our hypothesis by talking and testing with potential clients.
Only after experimenting and talking with clients do great solutions emerge.
Unfair benefits have to do with growth and to be a highly successful startup, you need one.
You don’t need all of them, but most billion-dollar startups have more than one unfair advantage.
Founders – You are 1 of 100 Are you an expert in your field? Are you a Ph.D., student in a very young field? Are you an exceptional seller? Being just above average does not cut it.
Market – Does the market have growth rates of 20% or higher? Note that this is the weakest feature you could get.
Product – Your product is 10 times better. It’s not enough that 2x or 3x is better. What makes it an advantage is that it is difficult for others to replicate.
Acquisition – $ 0 to acquire customers. Could gossip or do you have a free feature? This usually means having a large number of followers on social media or an audience from a previous company.
Monopoly. As the company grows, is it difficult for competitors to win?
The last thing to consider when evaluating ideas is your beliefs.
What is your threshold and can you work miracles?
Ask yourself: Can I even build my budding idea? How good is the sale, story, and customer conviction? (Critical to Making Money and Maintaining Your Business) Can I work through the sale? Can I bear hard times?