#BuiltAroundAdversity

In the last few years, we've faced a number of events which have impacted our lives drastically. Most people suffer as these events force us to change the way we live and approach our regular lives.

On the bright side, these changes become a boon for certain startup sectors, pushing startups into a hyper growth cycle. Be it Demonetization which put Digital Payment providers like Paytm into fifth gear, or be it the current Covid pandemic which has propelled Edtech/Epharmacy/Eretail or other "E" sectors into hyper growth.

This brings us down to a question, should startups look to build around a pain-point which may not be as severe at present, but is likely to escalate down the line. Some examples can be

- increasing crime due to a slowdown and unemployment

- targeting of a particular religious group

- the Govt. cracking down on other personal assets like jewelery, gold

- major cities not having water to sustain

Building with this view, it sounds a bit like a gamble, but who knows!!!

The 2 Types of Business Ideas

From the customer’s perspective, broadly all business ideas can be divided into 2 categories – the “Help Me” ideas and the “Show Me” ideas.

Help Me Ideas: These are business ideas which aim to solve a current pain-point of the customer. The customer is feeling a pain and the idea’s goal is to solve the same. For example, TripAdvisor was a business idea which aimed to solve the customer pain of not having enough and trusted information to make decisions about travel.

Show Me Ideas: These ideas, on the other hand, have a goal to enlighten customers about how things can also be done. The customer may be reasonably happy with the solution which is already available in the market. The Show Me Idea will show the customer a better way to do the same thing. For example, Uber would be a classical example which was able to provide a better customer experience using technology.

Having said the above, all ideas of a particular category also have certain elements of the other category. A Help Me Idea will also partly play the role of a Show Me Idea and vice versa.

Startup Idea - Marketplace for Unconventional Advertising

The Problem – Limited advertising options and increasing advertising budgets have led to steep rises in advertising rates of these options. This has affected the return advertisers can get on their advertising spend, at times making it unreasonable for them to do so.

The Solution/Startup Idea – A marketplace connecting sources of unconventional advertising with potential advertisers. This includes adverts in places like gyms, hotels, salons, educational campuses, residential areas etc.

Rationale – A host of unconventional advertising sources exist which are largely untapped. Tapping these would tend to bring down the advertising costs of advertisers, help them target better and also generate additional revenue of vendors of these new advertisement options.

Target Market –

Customers – Advertisers (especially local businesses, SMEs etc.); New vendors of advertisements (local options like gyms, schools, hotels, salons, spas etc. and online options like blogs, personal websites).

Geography – Global (launch can be in a particular city/country)

Current Competition – This unconventional advertising market is still untapped.

Competitive Advantage – The market is largely untapped. A first mover advantage can prove to be a significant competitive advantage. Also the volume and quality of the data will create barriers to entry in the future.

ADVISORY – Interesting Startup Trend for 2017

What is the winning formula for generating a business idea? Identify a problem and find a solution for it. Soon you see multiple startups in the rat race trying to offer better solutions to gain a share of the market. Now what this has led to is another problem, one which gets very little attention. For a user, there are so many options to choose from. Which one to go for?

This is where I feel an Advisor has a big role to play. An advisor, who should be the one in direct touch with user, has the responsibility of understanding the user’s exact requirement and suggesting products based on it. This decision making dilemma of users is the problem where the role of the advisor become useful. This, according to me, holds true for any industry, any requirement, B2B & B2C and so on.

Some issues I see with this model are:

Cost: An advisor needs to make money and this may add to the cost a user has to pay. However I feel finding a better solution for the problem might be more valuable than this cost for a user.

Conflict of Interest: This probably is a bigger problem and might lead to trust issues with the user. Some advisors might try to push those products where they get better commissions/make more money. This would be detrimental to the interest of the user. Giving independent and genuine advice is the need for a user and this must be the underlying premise for any advising service.

Looking for the Perfect Startup Idea

The best way of finding a startup idea is through experience. Sure, you can read about different Industries and do your research and come up with an idea. However, I feel if you can experience and identify a genuine problem, you feel more confident and passionate about the idea as you are a potential customer yourself. You tend to understand this idea better.

So now that you have identified an idea, should you pursue it? I guess before deciding, you should consider the following:

Passion: Do you feel like you are extremely passionate about the idea and really believe in solving the problem you have identified. Starting a company is a long and tiring process. Passion is what can see an entrepreneur through.

Skill Set: With the passion, a entrepreneur requires skill sets to execute well. If you feel you do not have or cannot put together the skill sets required, you should hold on before deciding to jump in.

When you develop a mindset of finding and exploring new ideas, you will tend to see a lot of gaps you can potentially fill. Be very sure which one to pursue and which ones to leave. Once you jump in with an idea, there should be no looking back.

Startup Model – Own & Share Digital Work

THE MODEL: A platform for users to create an attribution for their digital work (using a unique cryptographic ID) which they can share securely with family and friends. Also the platform gives users an option to trace how their work spreads through the internet and can also create some limited edition works (which are shared to a limited number of people).

STARTUP: Ascribe (German startup)

WHAT I LIKE

Core Idea – Innovative idea focusing on digital content ownership and sharing.

Benefits to Digital Content Creators – Owning and controlling their own content is what the startup offers to users. This enables users to get the best value from their work, value of which often, because of the internet being an open platform, tends to get diluted.

Product Features – Users can create ownership stamps for their work. They can share their work securely and can limit the sharing as desired. Also users can trace how the work spreads and can control the same. These features make it a must have for a lot of professionals like artists, photographers, media content creators etc.

CONCERNS

Revenue – Offering a service to a limited market, the startup may have to build onto the product to create new revenue models. The startup is trying to expand and is now offering a ‘marketplace’ service where the user can upload the works and manage and distribute them through the platform. 

Startup Model – Optimizing Mobile Website & Ad Spaces

THE MODEL: A platform for publishers to enhance their mobile sites and advertisement display spaces, thereby leading to higher revenues for them through higher user engagement. The platform analyses the audience of the publishers, user habits and behavior, and adjusts the mobile layout dynamically to maximize user engagement.

STARTUP: Marfeel (Spanish startup)

WHAT I LIKE

Core Idea – A win-win for everyone. Users get a better interface, advertisers get more engagement for their ads and publishers get higher revenue using the Real Time Bidding approach the platform uses.

No Download Required – Not being a mobile app, the platform works within the browser and does not have to be downloaded.

Cloud Solution – The platform’s technology runs on the cloud and dynamically updates content on the mobile site, following changes on the desktop site. This makes the service efficient and cost effective. 

Startup Model – Taking Offline Catalogues & Leaflets Online

THE MODEL: A platform for users to discover the latest deals and catalogues of retailers in their city. Users can browse through catalogues and save any pages/designs they like.

STARTUP: Tiendeo (Spanish startup)

WHAT I LIKE

Core Idea – Taking catalogues online is a new concept.

B2B Sales – The platform ties up with various retailers and convinces them to upload their catalogues online. Retailers can gauge the engagement levels of users with the catalogues.  

CONCERNS

Monetization – Retailers pay to receive analytics about the user engagement with their catalogues. Also affiliate marketers can use the website to promote their campaigns. The scalability and sustainability of these revenue streams seems doubtful to me.

Competition – Retailers through their online channels and other platforms like coupon sites, ecommerce portals have a lot of this information with them. 

Startup Model – Hyperlocal Mobile Marketplace for Used Items

THE MODEL: A platform for users to buy and sell used items in the nearby area.

STARTUP: Wallapop (Spanish startup)

WHAT I LIKE

Core Idea – Hyperlocal classifieds is a good concept as it helps differentiate from the existing players and also increases the chances of deal conversions.

Niche – Focusing on trading items ensures a clear and rich experience for users.

CONCERNS

Competition – Existing players with huge traffic may not find it very difficult to add a hyperlocal section to them.

Startup Model – Sports Broadcast Wearables

THE MODEL: A line of athlete clothing which has a video camera integrated in it to ehance the broadcasting of that sport. Fans can experience the sport through the movements of the athlete.

STARTUP: FirstV1sion (Spanish startup)

WHAT I LIKE

Core Idea – Integrating a camera in clothing is a good way to enhance the broadcasting of the sport to fans. Fans can experience the adrenaline and energy through this.

Product Features – The camera is not visible to the eye and is adaptable and integrated into the clothing. Also the quality of the broadcasting is very good.

CONCERNS

Competition – This idea has to be well protected by property rights to avoid competition as the technology is available and can be replicated.

Startup Model – Digital Presence for Lodging Operators

THE MODEL: A SAAS platform helps lodging operators create a website for managing and marketing their business. Vacation Home owners can create good looking websites with a booking and reservation facility and can also manage their cross platform listings through the dashboard.

STARTUP: Lodgify (Spanish startup)

WHAT I LIKE

Core Idea – Empowering vacation home owners with a fully optimized website.

Subscription Model – Subscribers can use the service for a charge while the platform maintains and upgrades the services. In a one-shot or any other revenue model, users cannot avail the upgrades and the platform does not earn a recurring revenue.

CONCERNS

Competition – The platform will face a lot of competition from multiple categories of vendors such as website development companies, digital marketing companies, similar platforms and other online tools.

Startup Model – Mobile App Discovery Platform Connecting Creators with Publishers

THE MODEL: A platform which connect content creators and agencies with publishers. The former want to share and market their content. The latter are looking to earn money by helping the former.

STARTUP: GeenApp (Spanish startup)

WHAT I LIKE

Core Idea – A DIY platform for connecting advertisers and publishers is great as this is currently done through digital agencies mostly.

Good Service for Advertisers – Since the platform is DIY, all information is transparent. You can view and select campaigns which may be most suitable for you. Also the app provides you with analytics and support to review and improve your performance.

CONCERNS

Competition – A lot of digital ad agencies offer affiliate marketing as service. Having established relationships with clients, they will act as strong competition for the app.

Startup Model – Online Ticketing Platform for Museums, Shows & Attractions

THE MODEL: A ticketing platform where users can discover and book tickets for various museums, shows and attractions.

STARTUP: Tiqets (Dutch startup)

WHAT I LIKE

Core Idea – Online ticketing is one of the big e-commerce sectors. Museums and attractions is still not very competitive.

Good Partnering Plans – Tiqets is partnering with travel companies through innovative methods like offering an API, offering co-branded sites and also a widget for other travel websites to plug-in. This clearly shows that the startup wants to make use of these partners’ traffic to leverage growth for themselves. In return, partners can get additional revenue by selling tickets.

Revenue Model – Sellers have to pay no setup or monthly fee. Commissions on sales is the revenue model for the startup. This removes an barrier for a seller to list with the portal.

CONCERNS

Integration – Since most museums and attractions are not as organized as flight or hotel operators, integrating new sellers may prove a difficult and time-taking process.

Physically Intensive – There are numerous shows and attractions in any place and hence a lot more sales effort is required to get them to list with the startup.

Startup Model – Creating & Distributing Rich Mobile Advertising Solutions

THE MODEL: An innovative mobile advertising platform for creating advertisements and placing them on targeted devices. It is an end-to-end solution for mobile advertisers to deliver innovative solutions to targeted devices and improve ad metrics.

STARTUP: Smadex (Spanish startup)

WHAT I LIKE

Core Idea – End to end solution for mobile advertisers.

Comprehensive – The service is a complete solution for mobile advertisers. All ad formats are supported on the platform.

DIY – Advertisers can create native, state of the art advertisements including video ads.

Startup Model – Interactive Workouts & Customized Nutrition Plans App

THE MODEL: An app where users can get information about customized workouts, adapted to any goals they have. Also customized nutrition plans are provided. Users can track their progress on the app itself and can also get one-to-one coaching from personal trainers (paid service).

STARTUP: 8Fit (Spanish startup)

WHAT I LIKE

Core Idea – DIY app, giving information on workouts and nutrition.

Ease of Use – The user can get all information on the app itself. The details are presented in a very clear and formatted interface.

CONCERNS

Revenue – How many users will take the paid service of getting one-to-one coaching is something I am wary of. Maybe once a user is very comfortable with the app will he/she convert, but what that ratio would be I am not too sure. Other revenue models will need to be added to keep this app going in the long run.

Competition – There are many apps offering similar services to users. 

Startup Model – Tracking Mail Correspondence

THE MODEL: A Gmail plugin which tracks mail sent by a user. It works the same way Whatsapp does, a single tick  means that the mail has been sent and a double tick means that the recipient has to read it. Also you can know which recipients have read the mail if you send a mail to many (both sender and recipient must have the plugin installed). All updates can be seen in your mail account through real time notifications.

STARTUP: MailTrack (Spanish startup)

WHAT I LIKE

Core Idea – Adding Whatsapp type features to e-mails is great and ensures a uniform experience for a user across both platforms.

Ease of Use – The plugin, once installed, works on it’s own. Also it is free to install.

Freemium – Again for a new product like this, this revenue model is perfect as the free version makes the user accustomed and craving for more (the paid version).

CONCERNS

Privacy – A lot of recipients would not want senders to know whether they have opened the mails or not (as in the case of Whatsapp).

Gmail – A plugin like this would be quite easy for Google to develop. How would the startup sustain if they decide to?

Startup Model – On Demand Parking

THE MODEL: A platform where users can find car parking and reserve a space. Parking charges here are less than half of on-street parking charges and can be paid online itself.

STARTUP: JustPark (British startup)

WHAT I LIKE

Core Idea – With the number of cars increasing every day, parking has become a big problem which needs to be addressed.

Ease of Use – The platform makes it very easy for a user to find a parking space and reserve it online.

Cheaper & Hassle Free – The parking charges on JustPark are more than 50% cheaper that on-street parking charges. Also users will not get slapped with any parking tickets as all spaces are authorised.

Big Market – As mentioned above, the number of cars are ever increasing and hence parking is emerging as a big sector to tap into.

Scalable – The business model is a marketplace model, i.e. the startup does not own parking spaces. It connects space owners to customers. This makes scaling easier.

CONCERNS

Integration – Find new spaces and integrating with them is a challenge. If a system can be worked out which can handle this efficiently, it will act as a good barrier to entry for new entrants.

Startup Model – Creating Unique, Copyright Free Music

THE MODEL: A platform where users can create unique music for use in their videos, games or anything else. You don’t need to be a musician. Every tack is easy to create and copyright free.

STARTUP: JukeDeck (British startup)

WHAT I LIKE

Core Idea – Bringing artificial intelligence to music compostition.

Ease of Use – The platform makes it very easy for a user to create a unique track without having previous knowledge or experience.

Freemium – A user can create 5 tracks free of charge. Thereafter, the startup has paid plans for it’s users. For such an innovative business model, this revenue model fits in perfectly.

Startup Model – Bespoke Knitwear Online

THE MODEL: A platform where users get to design their own knitwear. The design is sent to a knitting machine, which in turn makes the garment and ships it to the customer.

STARTUP: Unmade (British startup)

WHAT I LIKE

Core Idea – Customised clothing ensures a product that a user will not only own, but love.

Ease of Use – The platform makes it very easy for a user to design and order.

CONCERNS

Margins – Made to order is uneconomical. Although the customer is getting a customized product, pricing cannot be increased significantly as compared to rates of similar products in the market. Hence margins need to be worked out.

Startup Model – Curated Personal Shopping

THE MODEL: A platform where users get daily curated and personalized shopping lists and style recommendations. The platform has a tie up with more than 11,000 designers and stores and uses an algorithm to create curated lists for it’s users.

STARTUP: Lyst (British startup)

WHAT I LIKE

Core Idea – With fashion ecommerce becoming established and competitive, curation is a great way new entrants can add value to this space.

Ease of Use – The platform has a great UI. Users get redirected to the best links to buy products which they like.

Curation – This is the main factor which is adding value for the users. Curation is done using an algorithm based on user activity and preferences. This reduces the hassle for customers of sorting through loads of products to find which one suits you the most.

CONCERNS

First Impression – For a new user coming onto the website for the first time, some might mistake this platform as a regular fashion marketplace, and not one offering a curation service for users. Highlighting the USP of the service can be done better.