How do you know if your startup idea already exists?

How do you know if your startup idea already exists - StartupStorey.com

If I need to know does my idea already exist or not, I should start with searching on Google.

Obviously, if the competitors’ information don’t show up on search engines, it means they are not popular enough to take into account, or the idea actually haven’t exists.

In order to get the optimal result, I need to be careful in keywords research. I will divide them into these following criteria:

Problems: the keywords should reflect demands of customers, I need to begin with the problems that my startup will solve. For example: How to find a Valentine Partner?

Functionality: the keywords simply refer to what my startup can do. For example: Speed dating channel.

Value: it’s the result of functionality, which is benefit that people can gain. For example: A nice Valentine Partner.

However, I always believe that my startup idea will always never exists because the idea is not the things you come up with, it is how innovative you have with your model.

 

The better question is “Did my startup idea already exist and fail?”

To find out, talk to as many potential customers as you can, describe your idea, and ask them if they have ever seen such a similar product or service?

If they say yes, ask them if they used it.  If they did, find out why they stopped.

If they say no, ask them if they would buy such a product and how would they make it better

Now you are going to say, ‘I can’t run around telling people about my great idea. Someone will steal it.’

 

What if someone steals my Startup Idea?

Don’t worry. As many others have pointed out; ideas are easy, execution is hard. If someone else can become more excited, passionate, and driven about your idea after a one conversation; you shouldn’t start the business.

If they truly do get excited and passionate about your idea, have them be an angel investor, or one of your first customers, or maybe even a co-founder.

We have written an article about this issue and ways to mitigate the problem – What if someone steals my startup idea?.

 

Get Validation for Your Idea

It doesn’t matter how your business idea is gorgeous – if the market is not ready for it, or niche is full – you will not get any profit, at least not now.

As emphasized in the bestselling book, The Strawberry Startup, to check idea on the “strength” we must give it to the public.

The first way is to try out the idea “offline”. One of the most effective offline methods is pitching ideas.

The essence of pitching – to tell all the features of your idea during 2 – 5 minutes. The benefits of this method are: experts give you advices; the audience is involved in the discussion; you can find potential investors for your business; you will get community support and find like-minded people.

 

The second way, of course, to try out the idea “online”.

Probably the most effective method to identify opportunities online – to use crowdfunding platforms and B2B, B2C marketplaces for your business ideas.

 

Crowdfunding

The great thing about this process is that you are forced to go with your idea “to people” much earlier than usual. At the same time you are getting feedback and can correct your project much faster.

It is very useful for early stage startups, because it can save entrepreneur’s time in the future and money that he could spend on the “Debug” project. The feedback in the process of crowdfunding can help to understand if the campaign will be successful, or unsuccessful.

Examples: Kickstarter, Crowdfunding for Small Businesses, and recommendations from Forbes Top 10 Crowdfunding Sites For Fundraising

 

B2B, B2C marketplaces

The presence of members in the form of “internet community” allows to share information among all market participants.

Online reviews and ratings can be good feedback tools of risk management for companies.

Easy selection of proposals, the speed of decision-making, the way of communication via electronic channels help simplify communication.

 

Frankly it doesn’t matter if your start-up idea already exists.  

What matters is whether your potential customers know of  another provider of an equally good solution to your idea.  You find this out by asking them what alternatives they know of and why they are using the alternative they currently use (the status quo).  This is the first market research task you should perform before going any further.

If someone else has already implemented exactly the same idea as you — but the marketplace doesn’t know about it,  you could win, simply by making sure the marketplace learns about your version first — assuming the market really wants what you have.  Can you out market the competition?

If there is another provider of the same product already out there, and the market already knows about it, but isn’t buying it, you have a warning sign. If it is the same thing, why would they buy it from you if they won’t buy it today?

If there is another provider already and people are buying it, you’ve got an existence proof that people want it.   

But how will you win them away from your competitors?  Again, if you can out market them, you can win, even though you are second.  

Excel is market leading spreadsheet, not Lotus 1-2-3 or Visicalc.   Word is the leading document processor, not WordPerfect or WordStar.

Read the Strawberry Startup ebook

But competition threats go both ways.

If your idea is really good (will excite a lot of customers when product comes to market) that idea should be occurring to a lot of people at the same time.   

f you really are the first, there should be a lot of other people with the same idea by the end of the week, and even more in the next month.  If you take a year to come to market there should be ten or more competitors.  

If your idea is new and doesn’t attract competitors before you come to market, it probably a bad idea in that it probably won’t excite many customers willing to pay a lot for your product.  Because other people probably already surveyed the customers and that’s why they didn’t enter.

Should you be first to market and catch everyone sleeping, if you make a lot of money fast you’ll get a lot of attention.   

Having proven that a market exists you suddenly find a lot of “knock off” companies will try to quickly replicate what you have and out market you.

So what matters is not being new,  it is coming up with a better solution than your competitors, in a timely manner, and remaining competitive as new entrants enter the market.

 

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