There are two ways of starting up a company. The first is to take an existing business idea, and do it better. Preferably you will concentrate on an area where the competition is limited or you have some existing connections.
The second is where you come up with an idea that’s completely new. People think that it’s the only way to make a real fortune, but that’s not true. It may come as a shock, but Bill Gates became the world’s richest man largely by improving on the work of others. He wasn’t the leader in new technologies, but he was close behind. And he did things very effectively.
Microsoft didn’t invent the Windows and mouse interface. It was invented by Xerox at its research labs. Microsoft didn’t even produce the first commercial Windows-based computer. That was Apple with the Lisa. But it did get its timing right, do a plausibly good job and market the product very well. The rest is history.
The problem with developing a totally new concept is that it’s totally new. You are not only selling the product, you have to sell the idea too and educate the market. Even if it would sell, it’s more than twice as much work. If you have all the capabilities you need, with limited resources it is hard to succeed. And it’s even harder to recover from a failure.
The world economy is driven in the long run by breakthrough products. But for your own success, it’s worth remembering that the odds are greatly improved by exploiting an area where a market already exists.
Chris Barling, SellerDeck