There is a common A narrative that repeats itself in the technology industry. A thriving startup emerges with an innovative concept, attracts impressive venture capital funding, and rises to unicorn status. The company then fails to generate sustainable profits and falls from glory within a few years (or even months, in some cases). Despite the relative slowdown in venture capital activity, this story has continued over the past year and usually comes to the same end: 90% of startups fail 10% of them die within the first year.
While the numbers paint a bleak picture, one thing we realize as innovators is that every challenge holds a unique solution. In many cases, it’s not funding that holds entrepreneurs back but rather an overemphasis on fast growth and flashy technology. This leads to neglecting to solve core business challenges, which ultimately leads to a lack of stability and profitability in the long term. It is crucial to change this approach and prioritize providing repeatable solutions to relevant issues before investing in attractive technology products.
Suppose the goal is to provide an innovative solution to new and specialized problems in a way that has never been seen before in the market. In this case, you don’t need to be bold – you need to be bold enough to believe in your company’s vision and know enough of the space you’re in to maintain that level of self-confidence, even to the face. From strong headwinds.
Here’s how to start your own class to solve niche problems
Define your unique value proposition
When faced with insurmountable odds or an unexpected potential investment, what’s most important is to stay true to your company’s mission.
Our most beloved and valuable companies have built categories that didn’t exist to deliver solutions that others couldn’t even imagine. There’s a reason Apple maintains its presence as the most valuable company on Earth: The advent of the iPhone came at a time when users needed to carry their iPods, cell phones, laptops, and chartplotters individually. For the first time, there was one device that could contain all of these elements.
Compare that to a product like Threads, which offers a simple tweak to an existing product Failed to retain users. The sales pitch that says “We’re offering the same product that’s already on the market, just a little different” is much weaker than “Here’s a solution that didn’t exist before.” Over my career helping brands connect with their communities on their platforms, I’ve witnessed how this strategy reaps greater rewards than copying existing solutions.
In 2018-2019, I embarked on a journey to take on traditional social media giants and provide an alternative way for brands to develop brand-centric communities online. At the time, Facebook had several notorious scandals over the misuse of personal data the friendship I set out on a mission to improve and democratize social networks, hoping to build them better that foster positive user interaction while respecting user data privacy.