3 Ways To Start A Business
Summary
- When starting a business, there are three main options: solving a problem better than others, solving an unknown problem, or solving a well-known but difficult problem.
- Solving a known problem better than others involves execution risk, meaning you have to outperform others. This is where you make quick money.
- Addressing a problem no one knows about carries product-market risk. There's big money here if you succeed because you'll be tapping into something entirely new.
- Tackling a problem everyone is aware of, but finds hard to solve, involves technical risk. People already see its value; they just doubt its feasibility.
- Understanding these risks helps in choosing the best path for starting a business.
Video
How To Take Action
I would suggest starting by identifying which of the three main business paths resonates with you the most: improving on a known problem, discovering a new problem, or tackling a well-known but complex challenge. Start small by observing your current environment and jot down potential problems that fit each category.
If you're looking for quick wins, focus on solving a known problem better than others. Think about a service or product you already use and brainstorm how you could make it faster, cheaper, or more enjoyable. This involves less time and money initially since the market for these solutions already exists.
If you want to go big, identify unknown problems. Spend time engaging with communities or audiences to listen and understand their pain points—especially ones they might not fully recognize. Experiment with low-cost solutions or minimal viable products to test waters. Online surveys or social media are great, low-cost ways to gather this data.
To tackle tough, well-known problems, find collaborators or learn skills that strengthen your technical abilities and broaden your understanding of the problem. This approach requires careful planning but can set you apart when you've figured out a feasible solution.
In each case, understanding and analyzing the associated risks will help steer your approach. Focus on leveraging existing resources first to keep costs low while you gather data and refine your strategy. Be persistent, keep testing, and adjust your efforts to market responses.
