How To Find An Idea For A New Startup
on Jun 11, 2009 - 6:14 PM PST
An aspiring entrepreneur on Hacker News recently asked, “I want to start a startup, but have no ideas. What should I do?”
Here are some suggestions based on my interviews with entrepreneurs here on Mixergy.
Start by consulting
Mike Jones told us how he built a chat application for a consulting client and then turned it into userplane, a company that he sold to AOL.
Teach what you’re good at
Timothy Ferriss, Jeanne D’Arc and Lea Wood told us how they traveled the world as digital nomads. And now all 3 are making money by teaching others how to travel the world and still get work done.
Run some cheap tests
Chance Barnett, said before he even builds a product, he buys some cheap ads on Google to see if there’s a market for it.
Bring an existing idea to a different platform
Andrew Lee came to Mixergy to talk about how his company, JamLedgend, took the concept behind the Guitar Hero and made it into a game anyone can play on a computer.
Create a quick web site
Ted Rheingold said that dogster was just a fun web site he made while doing consulting work, and the idea was so much fun that it evolved into a business.
Get mad at something
If you listen to my interview with Adeo Ressi, you’ll see how upset he is with the way venture capitalists fund startups. That led him to create theFunded, a site that helps startups report on investors.
Do what you love
Keith and Chemda told us how they plugged a few mics into their computer and created a comedy podcast. Today, the show has a loyal following that tattoos itself with their logo.
Start networking
Peter Pham told us how he built relationships with entrepreneurs and those entrepreneurs helped him think through his idea for BillShrink.
Get a mission
Frank Warren showed us how his mission to help people release their secrets, helped him create PostSecret.
Do some people watching
Eric Stephens suggests that before you start a business, you watch people interact with existing companies to discover their pain points.
Buy an existing business
I asked Matt Mickiewicz for an interview after I read a New York Times article about how people were buying and selling companies on his site, SitePoint.com. In our interview, you’ll see how they do it.
Build a few smaller businesses
Rosalind Resnick talked about all the different companies she started before she hit on her big idea, Netcreations, a company she launched on her kitchen table and took to IPO.
Your turn. Do you have any suggestions?
These are just a few ideas that I happen to remember from past Mixergy programs. Do you have any suggestions for how to come up with an idea for a startup?
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June 11th, 2009 at 6:24 pm
Taking a trip to somewhere with a totally different culture is always a great way to spot interesting ideas.
June 11th, 2009 at 6:37 pm
I agree with Paul. Get out of your environment and open yourself up to other opportunities. Before I launched my 1st site I attended seminars all across the US and Canada. Nobody was organizing what was taught at the events, and there was little industry news coverage available online.
June 11th, 2009 at 6:47 pm
Figure out what annoys you. (or others)
Then make it not.
June 11th, 2009 at 6:48 pm
Work with someone who does.
June 11th, 2009 at 9:09 pm
Copy someone you can move faster than (MySpace)
Bring a traditional/offline business process onto the latest, better technology (eBay, SaaS software, etc)
Copy business-model ideas from another country that have yet to be imported (Starbucks)
One of the most useful things I have learned from the Mixergy interviews is that business opportunities appear to you as a result of being in business…so don't get depressed even if you don't have an idea yet…it seems like a neat new idea or business line comes every year or so while you're doing the consulting thing…eventually in the course of solving client problems, you hit a problem and realize there's no solution, and then *poof*…you have a startup idea, and often a huge lead in acquiring the skills needed to execute on it by “productizing” your previously private solution.
June 11th, 2009 at 10:21 pm
just ask me, I got so many of them I don't know what to do… And, I need some money to get some of them started up…
June 12th, 2009 at 5:12 am
You can start checking out ideas of people that are engaged in other stuff. This is the stuff they want someone to offer them… It's still new, but ideas are accumulating.
http://www.aleveo.com/public/ideas
June 12th, 2009 at 8:26 am
The one thing that I've learnt after one year an a half as an entrepreneur is that the idea is not very important. The most important thing is execution. A mediocre idea could be a great business if the execution is brilliant. Just solve one single problem better than the rest of the guys.
June 12th, 2009 at 10:34 am
Read books and find problems to solve…
June 12th, 2009 at 10:38 am
@Jose Maria: sorry, I have to oppose: the idea is the decisive thing. only thing even more important is the market you are in. if you execute a mediocre idea brillantly, what is the point? Successfully making many customers unhappy?
June 12th, 2009 at 12:20 pm
Great point. I've heard it called “traveler's eye,” the way you look at the
world as if for the first time when you're on vacation.
June 12th, 2009 at 12:21 pm
I think a lot of us in the internet startup world need to do that. We're so
deeply focused on news/conferences/ideas in our space that we keep creating
web sites that only appeal to other internet entrepreneurs. (I think I have
that issue here on Mixergy.)
June 12th, 2009 at 12:23 pm
Yeah, lots of great examples of companies that were built on that drive.
June 12th, 2009 at 12:23 pm
I have a few interviews on Mixergy of people who did that. Maybe I should
have included that.
June 12th, 2009 at 12:33 pm
[...] How To Find An Idea For A New Startup — Mixergy.com (tags: blog business startup howto inspiration entrepreneurship entrepreneur ideas networking) [...]
June 12th, 2009 at 4:44 pm
Look into Google Patent or MIT technology license office
June 12th, 2009 at 4:47 pm
Search Google Patent or MIT Technology License office
June 13th, 2009 at 1:17 am
Great businesses don't need to be built on new ideas. I spend a lot of time reading about other companies, looking at what other people are doing to get sparks of inspiration for my industry. I find the most useful thing I can do being a UK based entrepreneur, is read and subscribe to American business magazines to get a different perspective on things.
The Inc.500 issue has long been one of my favourites.
The other thing to remember is that if you wait for the right idea, it will never come along. You're better off taking something half-decent and having a go. By doing so you're more likely to turn an average idea into a great one than by sitting on the sidelines waiting for the great one
June 13th, 2009 at 2:03 pm
For me, B2B is about solving problems. Find a problem businesses have that effect their ability to make money or ability to operate efficiently (so they can make money), and then sell the solution or service.
June 13th, 2009 at 3:47 pm
Licensing your idea to someone is a fast cheap way to protect your idea and make some money using someone else money, brains and talents. Equally it is a great investment from a licensee's stand point to have use of trademarks, know how, distribution, products…by paying a %5-10% royalty without any front money in some cases.
win/win. Attorneys don't talk about it much because all the money is in franchising not licensing but franchising is the wrong place to start in most cases for a really green start up, licensing fits better.
Can't believe I just found this site! Love it! Keep up the good work, all the best Chad.
June 13th, 2009 at 4:35 pm
I got one of my ideas (hasn't made much money yet) through working for a B2B company and saw big gaps between what the customers (the businesses) needed to grow more and market their products better. If I never worked there I wouldn't have seen the big gap.
June 13th, 2009 at 10:03 pm
I have found that for me, the ideas I get from needs I have for my business. I like solving my own problems and making it available as a product. Just need to get this first one out the door!
June 15th, 2009 at 7:01 am
Everytime you read an article think about what is missing. Ask yourself if you can do it better, or if it is something you want to try out. Is there a hole in the market that you can fill?
I started creating T-shirt designs, doing animations, and created a website all after reading one article in the WSJ. This process lead me to many other and far more interesting ideas & concepts. It also built my knowledge base which has allowed me to take advantage of opportunities that I see.
By doing little things and trying different ideas out you can amass a lot of tools that could be useful down the road. It is much more difficult to start the next Google if you don't have basic math or programming skills.
June 16th, 2009 at 6:56 am
[...] The one thing that I’ve learnt after one year an a half as an entrepreneur is that the idea is not very important. The most important thing is execution. A mediocre idea could be a great business if the execution is brilliant. … Read the rest of this great post here [...]
June 16th, 2009 at 10:52 am
Check out Inc's guide to The Best Industries for Starting a Business
http://www.inc.com/ss/best-industries-for-start...
June 16th, 2009 at 6:43 pm
Inc magazine has been delivering really interesting, quick content about business. Thanks for the tip.
June 16th, 2009 at 6:46 pm
I got into the email business after reading a cover story in Business Week and a column in the Wall Street Journal.
The BW article profiled online businesses that actually made money. I noticed that every one of them was in a niche business.
And the Wall Street Journal had a story about an email marketing company that did well. I figured I could beat them.
June 16th, 2009 at 6:46 pm
That's how blogger.com started, right? The founders built something they needed to use in their company and realized others needed it too.
Great comment Jason.
June 16th, 2009 at 6:47 pm
I've heard of lots of companies that started that way. Guys who worked at a company and had their eyes opened to a new way. Thanks.
June 16th, 2009 at 6:48 pm
Thanks for the great point.
I should do some interviews on that.
June 16th, 2009 at 6:48 pm
It really is about finding problems. Thanks.
June 16th, 2009 at 6:50 pm
I wish I'd said that in the original post.
I see that all the time. Companies start doing one thing and end up in a completely different area.
I'm going to interview David Sacks who was at PayPal when they switched their whole business around.
They used to be about the PalmPilot and now, of course, they're about sending money anywhere.
June 16th, 2009 at 6:50 pm
Great suggestion for inspiration. Thanks.
June 16th, 2009 at 6:51 pm
Looks like you and Jas1383 are thinking along the same lines. Cool. Thanks.
June 16th, 2009 at 6:51 pm
I like how the site calls itself a “public idea garden.”
June 16th, 2009 at 6:53 pm
That's a good point. If anyone really needs an idea, they should partner up with someone who has one.
When I interviewed Mark Jeffrey on Mixergy, he told me that he teamed up with Jason Calacanis to create Mahalo because Jason had a great idea for a business.
June 16th, 2009 at 6:56 pm
eUniverse, the parent company of MySpace is a great example of a company that stole ideas well. After I sold my greeting card business to them, I got to hang out in their office a lot and see all the different businesses they got into.
They were doing MLM.
They had some kind of exercise ball that they sold by infomercial.
They had skin cream.
Etc.
Anything others did well, they wanted to copy.
That's how they got into my business.
June 16th, 2009 at 8:28 pm
Andrew: let's do a 7 minute podcast on “license versus franchise” I can arrange the Attorney who did the licensing for Terminator, Rambo and Star Wars. He also has franchise experience. I could fill in some “Now the license agreement is done, now what?” stuff for 2-3 minutes and I think we would have a tight show. If you are game let me know where to drop an outline and best times for you. Thx Chad
June 18th, 2009 at 7:40 pm
[...] Interesting article on Mixergy with suggestions from other entrepreneurs on how to find an idea for a new startup. What stood out for me was this: Run some cheap tests [...]
June 19th, 2009 at 3:03 am
Don't quit your day job!
If your business does not work (for a certain period of time) you can use your salary to sustain your business.
September 4th, 2009 at 9:02 am
[...] while back I created a list of the way past Mixergy entrepreneurs came up with their business ideas. Most did something [...]
October 20th, 2009 at 8:53 am
Do you build a few smaller businesses to find what you are good at? Or to if what you are good at will take off?
October 20th, 2009 at 3:53 pm
Do you build a few smaller businesses to find what you are good at? Or to if what you are good at will take off?