How to Find the Right Business Idea When Starting a Business

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How to Find the Right Business Idea When Starting a Business – How an e-commerce service delivers the best thing for the user? Before you decide that an idea is an idea currently owned startup, it’s good to observe well the exact definition and difference of startup and business ideas.

Currently there are still many founders and business owners who still do not recognize what is clearly the idea of startup and business ideas.

In the following article will be discussed about anything that became categories from startup idea and certainly a difference of business ideas.

How to Find the Right Business Idea When Starting a Business

Business startup ideas vs ideas

The controversial United States origin entrepreneur Peter Thiel categorize these differences as follows. The business idea is when activities or daily routine that could easily be run without having to be constrained by the validation process. For example selling food, clothing and other necessities. These products can be easily sold without utilizing technology and interfere with other industries, this is a great business idea.

As for the idea of a startup is the latest innovation that mostly make use of technology, it is difficult to be accepted when the beginning and require time and energy enough to get validation.

Startup idea: characteristics

  • To be able to develop their business model after the launch, even years later.
  • It can do so because of the rapid growth, utilizing money from investors.
  • This makes startup is suitable for an important big problem solving by doing things in an entirely new way, than make progress.
  • According to Thiel, one of which is horizontal (such as globalization, with the vast scale and what is already there), the other is vertical (such as technology, in the form of a new way of doing things).
  • According to Peter Thiel, the benefits of building a startup is that it can be done, if successful, turned into a monopoly, which guarantees a profit for a long time, which can then be used to create more vertical progress.

A key feature of monopoly:

Exclusive technology. This does not have to be a software or a hardware device, it can also be the result of a large, integrated design (like the iPad), but whatever you do must be at least 10 x better than existing solutions or replace it entirely.

The network effect. With every additional users, products like WhatsApp, Facebook, Instagram, Xbox Live, Reddit and more became a little more interesting for users, who have yet to try the product before. The larger the network, the greater the value for each individual.

Scale for the economy. The process of scale must be focused from day one. Startup you must grow stronger and bigger, for keeping costs down. A pizza restaurant chains are difficult to scale while the software much easier.

Branding. A good brand strengthens the effect of the monopoly, as it makes a unique point of view is seen by many people. But a brand without a great product backed up with would be futile.

To find out if Your startup ideas are worth:

  • Ask yourself if what you create is the latest technological breakthrough.
  • Think it is the right time to launch a product
  • The answer to this question: “if I dedicated all my time and money for a product or service and ends up failing, is still valuable?

At least 75% of the startup failed. From the startup survive, 75% had received investment. Specify exactly the idea startup that will serve, needed and preferred users. If these things have You found, the next process to construct the laden with challenges and constraints, will end well and according to plan from the correct startup ideas.


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