Loading...
Answers
MenuAre basic/simple (but new) startups ideas considered dumb?
So I have an idea for an online service that got me excited. However, I feel the idea is kind of dumb when I think about because it's so basic/simple (but new). Should I spend more time enhancing the idea or go ahead and execute?
Answers
Execute.
Is there a critical mass of value that someone will care about the problem you are solving for them?
The size of the problem you are solving and well you solve it generates the value. That then dictates what (if anything) you can charge. The number of people who have that problem defines your market size. That might give you an indication of the type of business/startup you have - is it a high growth startup, or in the case of a problem being solved where the market is not very large, maybe it's a life style business. Pete Thiels excellent book from last year talks about this and is certainly worth a read http://ajs.io/bookzerotoone.
Wikipedia says: A business model describes the rationale of how an organisation creates, delivers and captures value.
Or in my words: your business model is the way you profit from the value you create for others.
The good news is, starting simple has lots of benefits to usability, UI, message to market and capturing your first 100, 100, 10,000 users or customers. Go-to-market is where many startups fail most, not the technology, so that is something you should focus on and simplicity -provided your idea is part of a bigger vision- is a great place to start.
Think about it this way - Over-complicated ideas can be too difficult to bring to fruition. Never dismiss an idea because you believe it's too simple. Believe in yourself and go for the gold!
Impossible to say. Doesn't really matter if the idea is elaborate or simple, new or old.
You should be asking these questions:
(1) Should people use this?
(2) Will they if I reach them?
(3) What will it take for me to reach them?
(4) Will they value my service enough to repay my efforts?
Things can be simple, just not simpler. Good to know that you think your idea is just simple enough. It's so easy to make simple complicated, make sure you don't fall in that trap. What's complex is establishing business model around your simple idea, enhancing the perceived value, and brainstorming over monetizing the same.
Go ahead, not with the execution but, with thinking twice and planning. Cut once, think twice!!
Do you think it's dumb? If not, why do you present it like this? Have some faith in yourself!
Does this service give value to people? Is it needed? Maybe it's so simple it's genius, not dumb, and it is amazing how you are the first person to think of/ execute it...
My advice to you is: a. have faith in yourself! You are amazing (we all are!) and you can do everything (it's true, you can!)! b. if you still have doubts, ask your friends and family if they see value in it. Don't forget that it is very easy to think why not but what you really need to think is "hay, why not...?"
Sorry for the Zen like answer, but I truly believe in this attitude.
Good luck!
Let customers decide if it's dumb. Only people voting with their dollars are experts. There is a great booked called the "7 Day Start Up" by Dan Norris in which he talks about having some minimally viable product that people can buy as quickly as possible. Only then can you get honest feedback and begin building the service that people really want. All the best, Tom
3 stages:
1. Get as much feedback as possible (don't say: "what do you think?", say: "my friend has this idea, he wants me to join. I think it's not such a good idea. What do you think?" - this way people will be more willing to tell you the truth about the idea (if they know it's your idea, they will be afraid to offend you).
2. Refine your idea (and the solution / value it provides).
3. Validate the idea ( see how on this answer thread in Clarity: https://clarity.fm/questions/596/how-do-you-get-access-to-the-right-people-to-validate-an-idea )
I've successfully helped over 100 startups. I'm happy to provide further assistance.
Best of luck
Simple ideas are not considered dumb at all! Infact there have many instances when they have proven beneficial but only when good planning is accompanied with them. Here are some of the benefits of good planning:
1. See the whole business: Business planning done right connects the dots in your business so you get a better picture of the whole. Strategy is supposed to relate to tactics with strategic alignment. Does that show up in your plan? Do your sales connect to your sales and marketing expenses? Are your products right for your target market? Are you covering costs including long-term fixed costs, product development, and working capital needs as well? Take a step back and look at the larger picture.
2. Strategic Focus: Start-ups and small business need to focus on their special identities, their target markets, and their products or services tailored to match.
3. Set priorities: You cannot do everything. Business planning helps you keep track of the right things, and the most important things. Allocate your time, effort, and resources strategically.
4. Manage change: With good planning process you regularly review assumptions, track progress, and catch new developments so you can adjust. Plan vs. actual analysis is a dashboard, and adjusting the plan is steering.
5. Develop accountability: Good planning process sets expectations and tracks results. It’s a tool for regular review of what’s expected and what happened. Good work shows up. Disappointments show up too. A well-run monthly plan review with plan vs. actual included becomes an impromptu review of tasks and accomplishments.
6. Manage cash: Good business planning connects the dots in cash flow. Sometimes just watching profits is enough. But when sales on account, physical products, purchasing assets, or repaying debts are involved, cash flow takes planning and management. Profitable businesses suffer when slow-paying clients or too much inventory constipate cash flow. A plan helps you see the problem and adjust to it.
7. Strategic alignment: Does your day-to-day work fit with your main business tactics? Do those tactics match your strategy? If so, you have strategic alignment. If not, the business planning will bring up the hidden mismatches. For example, if you run a gourmet restaurant that has a drive-through window, you are out of alignment.
8. Milestones: Good business planning sets milestones you can work towards. These are key goals you want to achieve, like reaching a defined sales level, hiring that sales manager, or opening the new location. We are human. We work better when we have visible goals we can work towards.
9. Metrics: Put your performance indicators and numbers to track into a business plan where you can see them monthly in the plan review meeting. Figure out the numbers that matter. Sales and expenses usually do, but there are also calls, trips, seminars, web traffic, conversion rates, returns, and so forth. Use your business planning to define and track the key metrics.
10. Realistic regular reminders to keep on track: We all want to do everything for our customers, but sometimes we need to push back to maintain quality and strategic focus. It’s hard, during the heat of the everyday routine, to remember the priorities and focus. The business planning process becomes a regular reminder.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Related Questions
-
For every success story in Silicon Valley, how many are there that fail?
It all depends on what one decides to be a definition of a "success story." For some entrepreneurs, it might be getting acqui-hired, for some -- a $10M exit, for some -- a $200M exit, and for others -- an IPO. Based on the numbers I have anecdotally heard in conversations over the last decade or so, VCs fund about 1 in 350 ventures they see, and of all of these funded ventures, only about 1 in 10 become really successful (i.e. have a big exit or a successful IPO.) So you are looking at a 1 in 3500 chance of eventual venture success among all of the companies that try to get VC funding. (To put this number in perspective, US VCs invest in about 3000-3500 companies every year.) In addition, there might be a few others (say, maybe another 1-2 in every 10 companies that get VC investments) that get "decent" exits along the way, and hence could be categorized as somewhat successful depending on, again, how one chooses to define what qualifies as a "success story." Finally, there might also be companies that may never need or get around to seeking VC funding. One can, of course, find holes in the simplifying assumptions I have made here, but it doesn't really matter if that number instead is 1 in 1000 or 1 in 10000. The basic point being made here is just that the odds are heavily stacked against new ventures being successful. But that's also one of the distinguishing characteristics of entrepreneurs -- to go ahead and try to bring their idea to life despite the heavy odds. Sources of some of the numbers: http://www.nvca.org/ http://en.wikipedia.org/wiki/Ven... https://www.pwcmoneytree.com/MTP... http://paulgraham.com/future.html Here are others' calculations of the odds that lead to a similar conclusion: 1.Dear Entrepreneurs: Here's How Bad Your Odds Of Success Are http://www.businessinsider.com/startup-odds-of-success-2013-5 2.Why 99.997% Of Entrepreneurs May Want To Postpone Or Avoid VC -- Even If You Can Get It http://www.forbes.com/sites/dileeprao/2013/07/29/why-99-997-of-entrepreneurs-may-want-to-postpone-or-avoid-vc-even-if-you-can-get-it/MB
-
What is the best way to write a cover letter to an early-stage startup?
Better than a cover letter is to actually proactively DO something to help them. It'll show them not only that you've researched them, but you're passionate about the startup and worth bringing on. A man got a job at Square early on for just making them a marketing video on his own (back before they had one). Since you're a web designer, design a stellar 1-pager that's targeting their message to a particular niche. Something they could use on social media or something. If they're like most startups, they're not interested in reading cover letters. They're interested in passionate individuals who can add value to the organization.AS
-
I finally found my billion-dollar startup idea. Now what?
The idea is a very small fraction of what it takes to earn the first million. Certainly billion. What actually matters is your ability to *execute*. Entrepreneurship means "having the talent of translating opportunities into money". Or, as Alexis Ohanian of Reddit said, "entrepreneur is just French for 'has ideas, does them'." As much as it may seem that transitioning off your 9-to-5 is the biggest hurdle, it's not. If you can't "get out of the gate" then you're also not ready to deal with the real challenges of business, like "competition that has 1,000x your funding" or "suppliers that jerk you around" or "customers who steal your intellectual property". It's easy to have a "billion dollar idea". I'd like to mine gold off of asteroids; I'm sure that would be worth billions. I'd also like to invest in Arctic real estate that will become coastal vacation property after fifty more years of warming. And, of course, to make a new social network that everyone loves. But saying these things is very very different from accomplishing them. Prove your concept by first taking a small step, such as making the first dollar. (Maybe try Noah Kagan's course at http://www.appsumo.com/how-make-your-first-dollar-open/). If you can't figure out a way to "make it go" without a giant investment, then you're kidding yourself about your ability to execute the business. If you *can* figure out a way to get a toehold, then by all means do it now! Happy to advise further, feel free to contact me for a call.AS
-
What is a good/average conversion rate % for an e-commerce (marketplace model) for customers who add to cart through to purchase order.
There is quite a bit of information available online about eCommerce conversions rates. According to a ton of sources, average visitor-to-sale conversion rates vary from 1-3%. This does not mean the Furniture conversions will be the same. The bigger problem is that visitor-to-sale conversions are not a good data point to use to measure or tune your eCommerce business. All business have some unique friction factors that will affect your final conversion rate. It's very important to understand each of these factors and how to overcome them. The best way to measure and optimize is to take a conversion funnel approach. Once you have defined your funnel you can optimize each conversion rate to better the total effect. For example: Top of the funnel: - All web site visitors, 100,000 / month First conversion: View a product page, 50% of all visitors Second Conversion: Add to Cart, 10% of people who view products Final Conversion: Complete Checkout, 80% of people who put items in a cart In this example we see that only 10% of people who actually view products put them in to a cart, but 80% of those people purchase. If you can figure out why visitors are not adding items to their cart and fix the issue to increase the conversion rate, revenue should increase significantly because of the high checkout rate. You can use free tools like Google Analytics to give you a wealth of information about your site visitor and their behavior or there are some great paid tools as well.DM
-
How do you determine if a business idea is worth pursuing?
You ask the customers, and gauge their level of interest. Better yet, get yourself in front of some customers, and instead of telling them what you make or do, ask them what they need. When you notice that many of them need the same thing, and if it is something you can make or provide, you then have a business idea worth pursing.DF
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.