The Beginning of Entrepreneurship

Step 1: Identifying a Real Problem

So, how do you find these problems? You start by paying attention. Stop and think about your own daily life. What are the small annoyances that you encounter?

Is it a clunky checkout process at your favorite online store? Is it the difficulty of finding a reliable plumber? Is it the challenge of keeping your houseplants alive?

These aren’t just personal gripes; they’re potential business opportunities. The key is to validate that it’s not just your problem. Talk to people. Ask your friends, family, and even strangers online: “Hey, does this bug you too?” If you find a common thread, you’ve hit on a problem worth exploring.

Let’s take a quick example. Remember the early days of ride-sharing? The problem was clear: hailing a cab was often unreliable and inefficient. A company didn’t invent the concept of a car for hire, but it fixed the problem of finding one, paying for it, and tracking its arrival. They created immense value by solving a common, global frustration.

Step 2: The Practical Solution

Once you’ve identified a real problem, the next step is to brainstorm solutions. But don’t aim for perfection right away. This is where many aspiring entrepreneurs get stuck. They try to build the perfect, all-encompassing solution from day one.

Instead, start small. What is the simplest, most stripped-down version of a solution you can create to solve this one problem for one person? This is often called a Minimum Viable Product, or MVP.

Let’s go back to our houseplant example. Maybe the problem is that people forget to water their plants. A perfect, high-tech solution might be a self-watering pot with a connected app. But a simple MVP could be an email newsletter that sends a weekly reminder with watering tips for common plants. It’s not a physical product, but it’s a real solution to a real problem, and it costs almost nothing to test.

The goal of this MVP is to get feedback. You’re not selling a finished product; you’re testing a hypothesis. You’re asking: “Does this simple solution work? Do people find it valuable?” This is crucial because it saves you time, money, and heartache. It helps you pivot or refine your idea based on what your potential customers actually need, not what you think they need.

Step 3: Building a Business Around the Value

A problem and a solution are great, but a business needs to be sustainable. This is where you figure out how to create value in a way that people are willing to pay for it.

There are countless ways to do this. Maybe you charge for a premium version of your simple solution. Perhaps you sell your email newsletter as an ebook or an online course. Or maybe, you get enough traction with the free version that you can sell products to your audience, like custom pots or soil blends.

The key is to create an exchange of value. You solve a problem, and in return, the customer gives you something of value, usually their money. This isn’t a one-time transaction; it’s about building a relationship where you consistently deliver a solution that makes their life better.