Next Big Idea

 

How do you find the next big idea for your venture?

This question is daunting and overwhelming. I assume there are as many approaches as there are entrepreneurs. I know an entrepreneur that found his idea while watching the Shopping Channel.  I have a friend who found his idea while high on weed [kids - don’t try this at home]. And, I know some lucky folks that found their idea while working at their previous company. I unfortunately don’t fall into any of the above. I am among the folks who rely on methodological approaches to identify and assess potential opportunities.

This week I was asked by SAP’s Corporate Strategy Group to identify major trends and technological or social disruptions that could warrant new lucrative investment categories for the company. It got me thinking whether this was the right approach for entrepreneurs to take as well. SAP has the company power (market position and deep pockets) to watch, select, and then act on trends. Entrepreneurs on the other hand need to get in front of a trend and then ride it. Coming late to a trend increases the risk of becoming obsolete.

I therefore believe that entrepreneurs are best served by identifying a huge pain point or problem facing a market segment that does not have an adequate solution. Trends and disruptions come and go and are hard to predict. In most cases customer pains/problems are a constant and stand the test of time. Make the selected pain/problem an anchor for your company. Trends and disruptions will become the means to solve the problem and will change as the business grows.

Therefore, my suggestion is to first start by identifying the problem you want to address. Figure out whether:

1.       it is a big enough problem worth solving (measured in economic/social/political reward)

2.       you are passionate about the problem and the selected market segment

3.       your team has an unfair advantage in how you solve this problem

Only then proceed to evaluate all the trends and disruptions that can be leveraged to help you solve the problem.

I would much rather be in a business that is solving a mission critical problem to a person’s existence or a corporation’s goals than be in the business of offering a unique and innovative trendy approach to enhancing how something is done.

For more reading on this topic check out Jarkko’s blog