Posted by Shivali Anand
October 7, 2021 | 4-minute read (602 words)
When you come up with a business concept, chances are you're attempting to address a problem. But many entrepreneurs overlook how solving that problem could benefit society at large. Online forums for aspiring startup owners are rife with variations of this question: "What business will earn me the most money right now?"
Of course, the need to make money is significant. But your financial ambitions are not what is going to appeal to a considerable number of individuals. Successful startup ventures take a common problem and devise a solution that will make many people's lives simpler.
Consider the following tried and tested techniques if you're seeking guidance on turning a problem into a business.
Determine the nature of the problem and how many people it affects
If you have an issue in your life and can't find a simple, affordable or effective solution to it, others are probably looking for an answer too. There's only one way to tell for sure. If you come across an issue, conduct market research to see if other individuals are experiencing it as well.
If you see that your problem is prevalent, consider your prospective audience. Perhaps other entrepreneurs are dealing with the same challenges you are, making your product a business-to-business endeavor. If it's a problem that affects many people, you'll have a business-to-consumer concept. In any case, assess the market size so that you may begin researching that category's requirements, interests and purchasing patterns.
Consider your skills
When you've identified a problem and its possible consumer base, assess your own talents. Do you have the necessary resources and expertise to resolve the issue? Do you have any solutions that could close the market gap?
It's critical to be realistic in this phase, and you'll need to understand your target audience's pain areas and what you can do to alleviate them. It would help if you did something distinct from your competitors, assuming there are any. To make it happen, you must be able to innovate, work harder and more effectively than competitors, and wear several hats.
In other words, creating a new business from scratch is a lot of effort. Even if you have a brilliant concept that addresses a significant need, it won't be easy to put a business together. If you conclude that you have some of the abilities needed to run the business but not all of them, that doesn't imply you should abandon the concept. To address the gaps, you may need to consult with others, expand your staff, bring in strategic investors or form alliances. What matters is that you are aware of what you can and cannot accomplish.
Examine the rest of the market
If the problem you want to tackle is genuinely significant and applicable to many people, it's conceivable that it's already been addressed. That doesn't always imply your company isn't feasible, but you need to be aware.
Did other firms try but fail to address the problem? If that's the case, what happened to them? You could discover that their target demographics were wrong or that they underpriced their solution. Investigate what went wrong so you can learn from their mistakes.
If other businesses are already in the market, consider what makes yours unique. Examine your rivals' shortcomings to see where you might be able to fill the holes. Examine what you can do better than the competition and where your company can stand out from the crowd.
You'll be well on your approach to developing a business with a distinct market difference if you know exactly which solutions will answer the problem you identified.