Marty Kaszubowski, president of General Ideas, provides advice on starting a business. He emphasizes finding a real problem to solve rather than a pre-conceived solution. The document discusses evaluating ideas for being deep, intelligent, complete, empowering and elegant. It also stresses experimenting to find a repeatable business model and determining the type of startup company being formed, such as lifestyle, small business, or scalable.

1. You have an Idea …
Do you have a
Business?
Marty Kaszubowski
President, General Ideas

2. Topics
1. Don’t be a “Solution Looking for a
Problem …”
2. Find a REAL problem and fix it
3. Experiment until you find a viable and
repeatable business model
4. Decide/Determine what kind of
company you want to/can be

3. Don’t be a “Solution Looking for a Problem!”

4. The Magic Square
Some applications in cryptography
and image processing, but (so far!)
no real business …

5. The CueCat (1999)
"In order to scan in codes from magazines and
newspapers, you have to be reading them in
front of your PC. That's unnatural and
ridiculous."
… the device "fails miserably. Using it is just
unnatural."
… CueCat "isn't worth installing and using,
even though it's available free of charge“
Joel Spolsky, a computer
technology reviewer,
also criticized the device
as "not solving a
problem" and
characterized the
venture as a "feeble
business idea"

6. Good Idea, Bad Timing …
• The Apple Newton, released
in 1994
• No easy connection to the
desktop
• Slow processor, small onboard memory
• Immature user interface
• Expensive and complicated
to use
• Little customer support
• No third-part software or API

9. Eyeglasses with rear-view mirror
Banana Protection Device

10. From Problem to Profit
• Most successful businesses begin with
someone solving a real problem.
• If you’re experiencing difficulties with
something, others may be, as well.
• But be careful not to assume that
everyone has the same problem you
have, or wants the same solution!

11. Three questions to ask yourself
1. Does your idea make something easier or better?
•
People are always looking for shortcuts. If your idea
makes something easier, simpler, less expensive, or less
time-consuming, you probably have a winner.

12. Three questions to ask yourself
2. Is this a product that people want?
•
You’re convinced it’s a brilliant notion, but … if nobody
else is excited about it, it’s not going to be profitable.
•
Do some market research. Talk to as many people as
possible, as soon as possible!

13. Three questions to ask yourself
3. Can you sell it for a profit? Can you sell enough of
it to maintain a business?
•
It’s not enough to sell it (or give it away!), you must
make a profit to survive.
•
It’s never too soon to think about the costs of producing
it, marketing it, and selling it.
Per Troy Fairchild

14. But How Do I Find a Good Idea?
1. Build your startup around real-life problems that need to be solved:
• You probably already complain about things … Stop complaining and start fixing!
2. Question inefficient patterns and processes:
• Look for annoying manual processes; useless intermediaries & boring repetitive tasks.
3. Focus on time, money, and convenience:
• Behavioral solutions matter more than technological solutions -- reduce cost, make life
simpler, make technology less intrusive, help people find more time in their day.
4. Be realistic, but futuristic:
• It’s difficult to change the world all at once …
• Fix one specific problem in a way that makes things easier, faster, less expensive.
5. Iterate, iterate, iterate:
• Build,/release/improve, Build,/release/improve, Build,/release/improve…
Per Paul Graham

15. We Love Engineers … But …
• “Everyone loves ‘cool ideas’ and new
technology.”
• “I need to go-it alone to assure quality
and elegance.”
• “Marketing is fluff and selling is black
magic.”
• “We need to get functionality
maximized before we focus on
customers.”
• “A good engineer hates unpredictability
and risk.”
• “We can’t worry about making money
until we get it built.”
• “Outside funding causes loss of control
and undue pressure to deliver.”
Per Krishna Uppuluri

16. The Next Big Thing Will Be …
1.Deep:
• A deep product or service solves an immediate problem but has
room for a robust set of features that anticipate what your
customers will need in the future
• BUT DON’T TRY TO DO EVERYTHNG AT ONCE!!!!

17. The Next Big Thing Will Be …
2. Intelligent:
• An intelligent solution looks simple in retrospect, and doesn't
require a genius with an instruction manual to use it.
• REALLY KNOW HOW YOUR CUSTOMER WANTS TO USE YOUR
PRODUCT OR SERVICE

18. The Next Big Thing Will Be …
3. Complete:
• A complete solution provides a great experience that includes
service, support, and a string of enhancements.
• WATCH OUT FOR IDEAS THAT ARE “FEATURES NOT
BUSINESSES” OR “FEATURE CREEP.”

19. The Next Big Thing Will Be …
4. Empowering:
• An empowering solution enables you, first, to do old things better
and, eventually, to do new entirely new things.
• MAKE LIFE SIMPLER! EXPAND OUR ABILITIES!

20. The Next Big Thing Will Be …
5. Elegant.:
• An elegant solution is creative and polished, with a great user
experience.
• USERS WILL THANK YOU FOR DOING ONE THING VERY WELL!
Per Guy Kawasaki

21. Is your idea
Deep?
Intelligent?
Complete?
Empowering?
Elegant?

22. Marty’s Latest Idea …
SwapMyCurrency matches users
needing currency for an upcoming
international trip with users returning
from the same destination and helps
them meet for a no-fee trade.
Deep?
Intelligent?
Complete?
Empowering?
Elegant?

23. A Startup Is a Temporary Organization
Designed to Search for a Repeatable
and Scalable Business Model
• Failure is an Integral Part of the
Search for the Business Model
• No Business Plan Survives First
Contact with Customers
• Preserve Cash While Searching for
a Repeatable Business Model. After
It’s Found, Spend
• Communicate and Share Learning
• Startups Demand Comfort with
Chaos and Uncertainty
Per Steve Blank, et al

24. Never Stop Learning!
• Keep yourself process-oriented.
•
It’s not about the product or service!
•
Changing the world (or even a niche market!) requires time and many, many
small steps!
• Stay in the present.
•
Customers and competitors change regularly -- learn by iterating and listening.
• Make the learning process your goal.
•
Success in business comes to those who learn most quickly, and adapt their
processes most effectively.
• Be deliberate, and keep a clear picture of your
destination.
•
Each iteration should teach you something about how you’ll ultimately arrive at
your goal.
Per Thomas Sterner

25. But not all startups are the same!
There are six distinct organizational paths for
entrepreneurs:
1.
2.
3.
4.
5.
6.
Lifestyle business
Small business
Scalable startup
Buyable startup
Large company
Social entrepreneur
Per Steve Blank, et al

26. Types of startup ventures
1. Lifestyle Startups: Work to Live their Passion.
Examples: Professional Photographers, Healthclubs,
Surf Shops, Ski Instructors, Golf Pros
2. Small Business Startups: Work to Feed the
Family.
Examples: Restaurants, Clothing stores, coffee shops,
Cleaning Services, Contractors, Taxi Cabs, Consultants
3. Scalable Startups: Born to Be Big:
Examples: Google, Facebook, Skype, Apple, Ford,
Boeing, Мобильные Телесистемы, SoftServe, etc.

27. A Brief Diversion: Two Types of Scalable Startups
Vision
Culture
Resources
Brave
New
World
Create new markets,
redesign the value
chain, change the
world!
Focus on the long-lead
times, many creatives &
intuitives, high tolerance
for extended development
cycles, comfortable with
uncertain long-term gains.
Capital intensive,
almost always VCfunded, need for top
talent and patient
stakeholders.
Faster,
Better,
Cheaper
Eliminate
inefficiencies,
consolidate key
functions, make the
world work better.
Focus on execution, fast
iteration & tight deadlines.
The market drives team to
push hard, test quickly,
incorporate user feedback
immediately. Premium on
domain expertise and
industry knowledge.
Less capital
intensive, often
funded by strategic
partners, usually a
good acquisition
target!
Per Michael Fertik

28. Types of startup ventures
4. Buyable Startups: Born to Flip:
Examples: Tumblr (acquired by Yahoo), Instagram
(acquired by Facebook), Groupon (should have taken the
offer from Google!)
5. Large Company Startups: Innovate or
Evaporate:
Examples: Boeing (satelites, rockets), Ford Motor
Company (Ford credit), Apple Computer (iPod, iPhone,
iPad), Hewlett Packard (printers), Research In Motion (?)
6. Social Startups: Driven to Make a Difference:
Examples: Tom’s (shoes), Ethos (water), Husk Power
Systems (electricity generation)

29. Which type are you planning
to build?
1. Lifestyle business
2. Small business
3. Scalable startup
4. Buyable startup
5. Large company
6. Social entrepreneur

30. 10 Step Start-up
1. Have a plan, but skip
The Plan
6. Sell something
2. Start to assess the
market
8. Fake it to make it
3. Build a brand
7. Work the media
9. Work in and on the
business
4. Create the legal entity 10.Party!
5. Build a Lean Machine,
deliver MVP

31. Leave until later …
•
•
•
•
“Sales Whales”
• Cool office space
High end web site • Internal sales
staff
Consultants
• Outside
New products &
marketing &
services
Public Relations
• Strategic
Planning

32. Reminders
1. Don’t be a “Solution Looking for a
Problem …”
2. Find a REAL problem and fix it (Deep,
Intelligent, Complete, Empowering,
Elegant)
3. Experiment until you find a viable and
repeatable business model
4. Decide/Determine what kind of company
you want to/can be

33. Questions?