The post was originally published in Polish on Artur’s LinkedIn profile. Artur kindly agreed that we repost what we think is of great value to our readers.
10 key steps to realize your business ideas are as follows:
- Observe, don’t invent – Paul Graham of Y Combinator recommends to focus on noticing things rather than coming up with business ideas. Look at the problems in your workplace or the services you use. Listen to the people around you and you may just come across a great idea.
- Look for new experiences and be patient – To increase your chances of noticing things, actively look for new experiences and environments. For example, move to a new place if it’s possible. At the same time, be patient, allow yourself some time to observe the opportunities. You will find that things are not black and white and much may depend on personal factors.
- Solve real problems – Many companies fail because they build solutions to problems that don’t exist. Example: social media for athletes. No people want to use it, but they might imagine that others want it. Don’t interpret this as confirmation of the existing demand for your idea. Confirm the existence of the problem and only then create a solution.
- Find a relevant problem group – Is your problem urgent and important to enough people? If it’s rather an ‘interesting addition’ and not a must-have, then rethink your idea.
- Use your experience – You come across this advice over and over on Linkedin. It makes sense because it reduces the risk of creating a solution to a problem that doesn’t exist. When you have a better understanding of a particular industry, it will help you build and sell the product.
- Fix, don’t reinvent – You don’t have to reinvent the wheel. Success can be achieved through a different approach to an existing product. You can deliver a product with unique features, take a different marketing approach, or stand out in customer service.
- Fit matters – A brilliant idea alone is not enough to succeed in business. Think about whether you really enjoy working with your business, what type of business and lifestyle suits you best, and adjust your ideas accordingly.
- Targeting wins – Start with a smaller, well-defined market. Narrowing down your niche will help you communicate and stand out. For example, see the difference between ‘the best dog food for golden retrievers’ and ‘the best pet food.’
- Assess risk tolerance – Think about how much risk you are willing to take. Starting a business as an after-hours project can be a good way to minimize risk while you’re testing your idea.
- Calculate the cost of customer acquisition and its value over time – The profitability of your business largely depends on the balance between the expenses of customer acquisition and the profit you expect to generate. Even if your product is a one-time purchase, you can increase customer value by upselling related products.
Creator, entrepreneur and investor – I write about my experiences with startups, technology and business.
