The Start-up idea is composed of three parts.
The first part is a problem – It’s basically the initial conditions. What is the driving force that will help you grow this Start-up?
The second is the solution – What is that you are offering to solve this problem which will grow the company.
The third is your Insights – This means why do you think that this will work and help your company grow.
The thing about problems is that they are very common. A lot of people have problems. As a start-up, you need to avoid problems that there’s a small number of people that have it. The idea should solve growing problems. That means, when the market grows, more people have these problems so that as a solution provider your company will grow as per the market.
Investors typically like four sorts of problems –
- Urgent problems which needs quick solution.
- Problems that are expensive to solve.
- Mandatory problems
- Problems that are recurring in nature.
After identifying the problem, you need to back it up with the numbers. You need to have thorough market research with you. Remember, Data is the new oil. The more data/numbers you have, the more you will feel confident about the problem you are going to solve.
If you have selected the right problem and you already have the right set of customers, then you’re going to do better than average.
Consider an example of the growth in the Indian Stock Market. The problem here was a lack of education and awareness amongst the investors. This problem was solved by many and is now a successful start-up. It was not a unique problem but the market was growing rapidly and the problem needed a quick and mandatory solution.
So now that you understood the problem part, for our next Artho Shots, we will talk about the solution to the problem.
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Read our previous Artho shots here.