Tuesday, July 22, 2008

Solve Your Own Problems, Not Someone Else's

Creating value is all about solving a problem. Solving a problem means understanding the problem itself in every dimension (missing even one dimension can render the product/service that you develop utterly useless). The only true way to understand a problem fully is to experience it. That pretty much explains why some of the most successful businesses in the world stem from the entrepreneurs solving a pain point that they experienced and knew inside out. Bankers identified opportunities in banking services/software, people having trouble working remotely developed collaboration software and college kids having trouble organizing their social lives built social networking.

One of the biggest issues I've faced over the past 6-7 months has been coming up with a great idea. Ordinary people find this difficult enough but it's infinitely harder for a young person who has such limited work and life experience and whose problems really are between the three realms of social life, student life and and consumer life. The result is often that young entrepreneurs try to learn about others' problems in the hope of solving them for a premium. Yet my recent experiences have shown that this is extremely difficult, since you keep learning some new information down the road which forces you to reevaluate everything. Uncertainty is always higher than you'd like and there's a part of the story that you know you're always missing.


So what's my takeaway here? Stick to solving your own problems. Don't try to build a business catering to outdoor sports enthusiasts if you've never been camping once, just because you see some untapped niche. If you think the opportunity is that huge, get a partner who IS an outdoor enthusiast so that you at least have some way of understanding what clients are telling you. In other words, stick to what you (or someone on your team) know. It'll take longer to find a great idea but pay off in the long run.


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