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Mediocre founders aren’t able to articulate what’s hard about the problem they’re solving
I ’m spotting a troubling movement among startup founders who seem to think that running a inauguration is effectively a get - rich - quick scheme . Apart from that mindset being wrong and naive , I suspect there ’s something a lot more insidious at play here : misinterpret on a key degree what startups are for .
Any business exists to exchange money for value . Your local lemonade stand does that : You have a dollar and you ’re thirsty on a hot summer day ? you could exchange that dollar sign for a drinking ( and the joy of control entrepreneurship in action , if that ’s your jam ) .
The affair is , most obvious problems that have obvious solution do n’t need startups . Those markets are very well cover by officeholder . Where tech startups come in , then , is overlaying the desire to work out a problem with a thirst to break up : Using an unfair advantage ( usually technology , but it ’s also possible to interrupt other aspects of the value chain , such as business models , logistics or pricing models ) and a bold idea means that startups can take a stab at solving a major issue .
If the problem you are solve is n’t inherently tough , that ’s a huge job in itself , for a number of reason .
The biggest problem is that you immediately lose your militant advantage . Startups that tackle challenging problem are the I that stand out , create value and , ultimately , succeed . At the heart of every successful startup is a unique value proffer . When a startup solves a hard job , it creates a solution that did n’t exist before , providing value to customer and making the startup indispensable in its industry , ideally in a direction that nobody else has done before .
So where does the “ hard ” come in ? Well , simple solutions are relatively easy to copy , and it makes the inauguration ’s moat ( or its defendability , if you will ) right smart too shallow . When a successful companionship comes along , there will be twelve of father who mean they can do it cheaper or differently , in ways that are somehow “ better ” than the original company . If the original solution was n’t hard , then , well , the disruptors may become the disrupted rather promptly .
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I usually expect inauguration the same enquiry : Why you ? Why this ? Why now ? What is hard about this ? Great founders are able to answer all those questions with enthusiasm and certainty . Mediocre beginner are often stumped .
Knowing what is hard about what you are doing keeps you true . It keeps you pointed in the veracious steering . It helps enlighten and prompt and gives a reason to keep proceed even when the going get baffling .
There are other reason , too , why work on on a strong startup can be good : clear a strong problem could make the relaxation of the industriousness take posting . As an groundbreaker , thought leader and pioneer , your life becomes much easier . sale and marketing is easier , attracting top talent is gentle , and ideally it means you ’re able-bodied to blame a insurance premium rate for your products or service .
This also means that you need to have a outstanding team . The squad is the most important panorama of any inauguration . If you do n’t have an extraordinary squad that has perfect founder / market fit , you wo n’t be able to approach the challenges at deal with a fresh perspective .
Building a startup is never easy , even if you have the best squad in the human race . And if it seems like the troupe you ’re about to set about will be a sure - firing win , you ’re probably wrong . There are a lot of impertinent people already working on the job you are sample to lick — and if it seems well-off , you must be miss something .
