How Do You Come Up with a Startup Idea?
How Do You Come Up with a Startup Idea?
Find the problem rather than focus on a solution.
The best startup ideas don’t begin with a flash of brilliance but with a quiet observation of the world around us. Problems worth solving are everywhere—you just need to pay close attention.
Here’s the truth: identifying a problem is often more strategic than accidental. While serendipity plays a role, actively seeking out challenges can yield incredible opportunities. So, how do you find the right problem to solve?
Start by Choosing an Industry or Topic
Let’s say you’re interested in tackling paper waste. A logical first step would be to engage directly with people in the industry. Ask them to share the top three problems they encounter in their day-to-day tasks. The more diverse the perspectives you gather, the better your understanding of the landscape becomes. Think of it as casting a wide net—your goal is to collect as many insights as possible before narrowing your focus.
Evaluate the Problem: Is It Worth Solving?
Not every problem is worth your time. A method I learned during my time at ESADE Business School is the Iceberg Model of Problems. The idea is simple: the most pressing and impactful problems lie at the bottom of the iceberg—deep, critical, and often long-lasting challenges. In contrast, top-of-the-iceberg problems are surface-level issues that are usually less impactful. Many B2C solutions fall into this category.
To identify a bottom-of-the-iceberg problem, consider points of departure—specific factors that validate a problem's worth. Here are a few examples:
- Passion: Is this a problem you’re deeply interested in solving? Falling in love with the problem is essential.
- Market Validation: Are there already two or three competitors addressing this issue? That’s a sign it’s a recognized and valuable challenge.
- Target Audience: How valuable is the target customer? How significant is this problem in their lives?
- Pain Point Hierarchy: Where does this problem rank in the hierarchy of challenges faced by your audience? The higher it is, the better.
- Value Proposition: How strong is your proposed solution? Does it truly address the pain point effectively?
- Scalability and Margins: Is your solution scalable? Can it generate healthy margins?
- Capital Intensity: How resource-intensive is the solution?
These considerations form a strong foundation for determining whether a problem is worth solving.
Explore Alternative Problem-Finding Strategies
While direct engagement with industry professionals is one of the most effective methods, it’s not the only way. Observing people in everyday scenarios can reveal subtle but impactful problems. Additionally, platforms like Reddit and Quora offer fascinating insights. I came across a method shared by Greg Isenberg, who spends hours scrolling through niche subreddits and Quora threads to discover recurring problems. It’s a modern approach to crowdsourcing issues worth addressing.
The Goal: Find a Problem You Can Fall in Love With
Running a startup isn’t just about solving a problem—it’s about committing to one. The journey will test your patience and resilience, and unless you’re truly invested in the problem, the hardships can become overwhelming. Passion is your anchor.
What’s Next?
This is just the start of the conversation. There are countless other ways to uncover new problems, and I might write a follow-up post exploring some of them. In the meantime, I’d love to hear your thoughts:
- Has this blog helped you identify a new problem worth solving?
- Are there specific topics you’d like me to explore in future posts?
- Would you be interested in a newsletter or notifications for my blog updates?
I write when inspiration strikes, and only when I have something meaningful to share. Let’s keep experimenting, learning, and growing together.