Ask HN: How to come Up with profitable business ideas?

https://news.ycombinator.com/item?id=23740649

by throwawayt856 • 6 years ago

5 1 6 years ago

news.ycombinator.com

Leftium• 6 years ago

"Make something people want." (Paul Graham[1])

A stronger version of this is "Solve an urgent problem." (Caleb O'Dowd, Gary Halbert)

- A person with high blood pressure may want to lower their blood pressure, but a person with 90% blocked arteries absolutely needs to lower their blood pressure. Otherwise they will die.

- A person may want to get their dog to sit on command, but a person whose dog is barking uncontrollably will either be evicted or forced to get rid of their pet.

The common thread I see with successful companies/strategies is focusing on the customer/users' needs and desires. A common thread I see with failed companies is a focus on themselves and/or their product; they barely think about the customer/user. The problem with this is the product is not the greatest challenge for a business; sales and marketing is the greatest challenge for most businesses. "Build it and they will come" only happens in the movies.

So pick a niche and solve their urgent problem. That's another thing: if your product is for everyone, no one will be interested. Pick a narrow, specific niche where there is competition. If there is no competition, there is probably no money. (Look at what happened to Segway.) Another way to say this is "Desire cannot be created. Like sunlight it can only be focused and transformed." (Paraphrasing Eugene Schwartz.)

Money (profit) is a side-effect of creating value. (Which might explain the similarity Paul noticed between successful businesses and charities.)

Of course, you can pick counter-examples of successful businesses that did not do this. There is more than one way to success. This is simply the way to decrease your chance of failure.

Also, during recessions, the businesses that target niche markets and solve their urgent problems tend to survive, while other businesses die.

I could go on, but these are probably the most important points...

[1] http://www.paulgraham.com/good.html

Ask HN: How to come Up with profitable business ideas?

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