Source: BUSINESS INSIDER
Launching a startup is easy if your idea is ready with you. But if you are still wondering what business to start, the thing becomes extremely difficult. Every successful business begins with a great or say unique idea which actually work at ground level. But again, the main question is, how do you know when you’ve found the one? Frameology founder and CEO, Ben Koren tells he had at least 15 ideas for a business before choosing the current one for a website that prints and frames photos.
Before launching Frameology earlier this year, Koren analyzed companies as a private equity investor to determine whether his investment firm should invest in them, how much it should invest, and at what valuation.
“Starting a company is extremely risky, so one of the hardest things is figuring out which idea has the greatest chance of success,” – Koren
Koren adds, the time and the experience have taught him every entrepreneur must ask three crucial questions to themselves before gearing up for launching own business. He says, if you feel comfortable with the answers, it means you’re ready to get, set, go!!! But if not, don’t loose courage, a better thing is yet to come. 🙂 🙂
Let’s have a look on those questions.
1. ‘Does this solve a problem that real people have?’
Well it’s a simple concept but Koren believes it’s quite powerful. In order to shape a successful business, you need to solve a problem – it’s the surest way to get how you can find someone to invest in your startup. You can also choose an option of angel investors(Angel investors – Real angels for startup).
Koren started Frameology because he couldn’t find any place that would both print and frame a photo that he wanted to gift his girlfriend.
Focusing on your own problems is a great place to start because you can easily comprehend them and if you have a problem, there’s a good chance that others have it as well. – Koren
2. ‘Is the market opportunity compelling enough?’
Ben explains that it’s actually much easier to shape a great business in a small market because of less competition. While you will eventually need a big market if you want to expand venture capital, Koren says you can start with a small market and then expand into a larger one.
“The important thing to focus on is competition,” he says. “If you are the only person offering a particular good or service, your life is going to be much, much easier, and your business is much more likely to succeed.”
Koren says he has chosen the idea for Frameology because the market for picture frames seemed ideal – Existing online photo goods retailers focused mostly on albums and cards, not frames, he says. And while you could buy a picture frame online, no other company printed the customer’s picture to include with the frame. What’s more, he says that although the market for picture frames itself is medium-sized, the market for gifts is huge.
“By building a service that made creating the ultimate personal gift as easy as a few taps on your phone, we had an incredible opportunity to expand into a much larger market,” he says.
3. ‘Can I do this better compared to anyone else?’
This is perhaps the most important question that most newbie entrepreneurs could not get a time to look at.
Ben explains that if you’re solving a real problem in a compelling market, people will want to copy you – the key to success is being able to do it better than your competition.
Investors tend to look for an ‘unfair’ advantage when investing in startups – something that ensures you can win against the odds.
In Ben’s case, he says that advantage came from his dad.
He says, “My father had been in the picture frame business for 30 years. I worked at his store during school days and basically grew up in the business. We knew everyone in the industry, which means that we could source better product at better prices than anyone else.”