Startups aren't a goal unto themselves. They're a means of finding a company worth building. They should offer a coherent, focused product or service that solves a real, existing problem.

1. The Right Kind of Startups
Tech Week Detroit 2015
C A R L E R I C K S O N

2. What are startups for?
T H I N K A B O U T I T:

3. Win business plan competitions
Raise a lot of VC money
Fail quickly so you can build your resume
Land you on the cover of Fast Company
Create a social venue for 20-somethings
Get acquired and subsequently buried
Make you rich, quick
WAIT! THAT’S AN EASY QUESTION
It would be easy to assume that tech startups exist to:

4. Startups aren’t a goal unto themselves,
despite the impression you might get from the
current hype.
W H AT A R E S TA R T U P S F O R ?

6. Startups are a means of figuring out a
company worth building.
W H AT A R E S TA R T U P S F O R ?

7. Improve people’s productivity
Let people do new, valuable things
Entertain, amuse or connect people
AN ECONOMIC FUNDAMENTALS PERSPECTIVE
Companies worth building provide a product or service which

9. THE TEAM IS SMART, PERSISTENT,
COACHABLE, AND RESOURCEFUL

10. THEY VALIDATE THEIR IDEAS,
FAVOR EVIDENCE OVER ARGUMENTS

11. THEY KNOW THE MARKET OR
BUSINESS THEY ARE TARGETING

12. THEY HAVE SOME LIFE AND WORK
EXPERIENCE

13. SOLVES OR IMPROVES AN EXISTING,
SIGNIFICANT PROBLEM

14. CREATES VALUE DIRECTLY, NOT
INDIRECTLY

15. VALUE ACCRUES IMMEDIATELY
WITH FIRST CUSTOMERS

16. DISRUPTS A LAGGING MARKET OR
INDUSTRY

17. NO SIGNIFICANT CHANGE IN USER
BEHAVIOR REQUIRED

19. Q U A L I F I E D T E A M , R E A L P R O B L E M , U S E R - C E N T E R E D S O L U T I O N
K E E P
I T R E A L