Loading...
Answers
Menuwhatever I think of, it always exists and even better. How to scape this?
whenever I think about something I do full research to see if it already exists but I always find the idea executed even better than what I thought of.
Sometimes it took off and I'm like: "there is no way I can compete here", or it doesn't take off even if it's brilliantly done and I'm like: "there is really nothing I can do better than the competition to make it scale"
Market research always take a lot of time and effort and then I just have to cancel the idea even before starting it :(
How do I escape this loop please?
Answers
Hi,
I have helped many startups and it is true that you should research an idea - well done for this - not everyone does it or does it well enough.
Do you start with the problem you are trying to solve (or pain or need or desire)? It depends of course if you are looking at B2C or B2B solutions but if B2B, have you tried finding one or people with the need? If you can get them to commit to purchasing your solution early then this is a good sign and can fund development. Development of product is then a large undertaking itself but totally doable with the right help.
This is a very big area for discussion and I certainly cannot cover everything here!
Check out my video on how to turn your idea into a startup at https://softwarestartupcoach.com/
Happy to have a call to discuss further.
Regards
Stuart
what is your biggest problem?
what are your strengths?
there is rarely a new idea made from scratch, but improvements to existing models (Amazon selling online, Uber instead of a cab, a social media for a different generation etc)
Let me know if you'd like to explore further!
Best,
Sinan
Great question.
A few tips that might be helpful:
1. Stop looking for new ideas. Instead, try look for problems/pains that people or companies have. Once you've found the pain point, then work on the solution.
2. Market research shouldn't be taking you a lot of time. At least not the initial research. It should be lean (fast) just to get a quick understanding of the market. Maybe you're spending too much time researching and not validating your assumptions? Read a bit about the Lean startup. You can also read my short article about validating your idea: https://startuplawyer.co.il/everything-you-need-to-know-about-a-privacy-policy-for-your-website-or-mobile-app/ (article will be up in a day. I'm busy updating and backing up the website).
And remember: Facebook wasn't the first social platform. Google wasn't the first search engine and Tinder wasn't the first dating app. Meaning that even if someone is doing it, doesn't mean that it still isn't something you could/should do.
Good luck!
I am a mentor on Startups.com, an international lecturer on entrepreneurship and negotiation, and a commercial startup lawyer. I've successfully helped over 400 entrepreneurs, startups and businesses and I would be happy to help you. When scheduling a call, please send me some background information and the 2 main questions you want answered so that I can prepare in advance (to give you maximum value for your money). My reviews: https://clarity.fm/assafben-david
Related Questions
-
What is the average series A funding round at pre revenue valuation for a enterprise start up w/cutting edge tech on verge of our first client.
With all respect to Dan, I'm not seeing anything like that. You said "pre-revenue." If it's pre-revenue and enterprise, you don't have anything proven yet. You would have to have an insanely interesting story with a group of founders and execs on board with ridiculous competitive advantage built in. I have seen a few of those companies. It's more like $3m-$5m pre. Now, post-revenue is different. I've seen enterprise plays with $500k-$1m revenue/yr, still very early (because in the enterprise space that's not a lot of customers yet), getting $8m-$15m post in an A-round. I do agree there's no "average." Finally, you will hit the Series A Crunch issue, which is that for every company like yours with "cutting edge tech" as-yet-unproven, there's 10 which also have cutting edge tech except they have customers, revenue, etc.. So in this case, it's not a matter of valuation, but a matter of getting funded at all!JC
-
How much equity should I give an engineer who I'm asking to join my company as a co-founder? (He'll be receiving a salary, too, and I'm self-funding)
You will find a lot of different views on equity split. I haven't found a silver bullet. My preference/experience is for: 1. Unequal shares because one person needs to be the ultimate decision maker (even if it's 1% difference). I have found that I have never had to use that card because we are always rational about this (and I think us being rational is driven because we don't want a person to always pull that card cause it's a shitty card to pull) 2. When it comes to how much equity, I like Paul Graham's approach best: if I started the business by myself, I would own 100% of the equity; if xxx joined me, he/she would increase my chances of success by 40% (40% is just an example) at this moment in time. Therefore, I should give him/her 40% of the company (http://paulgraham.com/equity.html) 3. In terms of range, it could go between (15-49%) depending on the level of skill. But anything less than 15%, I would personally not feel like a cofounder 4. Regarding salary and the fact that you will pay him/her, that's tricky but a simple way to think about it: If an outside investor were to invest the equivalent of a salary at this exact moment into the startup, what % of the company would they get? (this may lowball it if you think the valuation is high but then again if you think you could get a high valuation for a company with no MVP, then you should go raise money) One extra thing for you to noodle on: given you are not technical, I would make sure a friend you trust (and who's technical) help you evaluate the skill of your (potential) cofounder. It will help stay calibrated given you really like this person.MR
-
How can I become an idea person, as a professional title?
One word: Royalties This means you generate the idea and develop it enough to look interesting to a larger company who would be willing to pay you a royalty for your idea. This happens all the time. Rock stars, authors and scientists routinely license their creative ideas to other companies who pay them a royalty. Anyone can do it. Your business, therefore, would be a think tank. You (and your team, if you have one) would consider the world's problems, see what kinds of companies are trying to solve those problems, and then develop compelling solutions that they can license from you. You have to be able to sell your idea and develop a nice presentation, a little market research and an understanding of basic trademark and patent law. The nice thing about doing this is that if you develop enough cool ideas you will have royalties coming in from a lot of different sources, this creates a stable, passive revenue stream that requires little or no work to maintain. Start in your spare time and plan on the process taking 3-5 years. Set a goal to have a few products in the market that provide enough revenue (royalties) to cover your basic living expenses. Then you can quit your day job and dedicate more time and increase the momentum. A good idea business should have dozens, if not hundreds of license contracts generating royalties. It's possible to pull this off. And it is a fun job (I'm speaking from experience).MM
-
Business partner I want to bring on will invest more money than me, but will be less involved in operations, how do I split the company?
Cash money should be treated separately than sweat equity. There are practical reasons for this namely that sweat equity should always be granted in conjunction with a vesting agreement (standard in tech is 4 year but in other sectors, 3 is often the standard) but that cash money should not be subjected to vesting. Typically, if you're at the idea stage, the valuation of the actual cash going in (again for software) is anywhere between $300,000 and $1m (pre-money). If you're operating in any other type of industry, valuations would be much lower at the earliest stage. The best way to calculate sweat equity (in my experience) is to use this calculator as a guide: http://foundrs.com/. If you message me privately (via Clarity) with some more info on what the business is, I can tell you whether I would be helpful to you in a call.TW
-
how to start earning on clarity.fm
Most of the earnings come from the people you are in contact with. The platform is not that big at the moment but it can be earned. My recommendation is to create content on your private page web, facebook, instagram ... and leave a clarity link through your work. If you need extra help call me for 15 minutes.DB
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.