How to get startup potential business ideas from customers?

Author: Partha Chakraborty Published on: June 14, 2021 Published in: Uncategorized

We’ve previously covered a lot of content on generating and evaluating startup ideas. And if you haven’t checked out some of the awesome content, here they are:

Also, you can use our powerful idea generator and evaluator to brainstorm on 10,000+ ideas. Or you can just watch the video of how the tool works.

Now let’s get back to the topic of how to get startup business ideas from potential customers.

Many entrepreneurs fail because they build things no one wants and they do that because they begin by trying to think of startup ideas.

A better way to get startup ideas is not to think of startup ideas but to look for problems. Solutions to problems can make for some of the best business ideas.

An idea might or might not be a solution to a problem. But, a problem will bring you closer to a business idea than a random idea.

The process starts with identifying a customer segment you want to cater to. The next step is to conduct customer development interviews with the segment to identify their problems and what solutions (business ideas) will be valuable to them.

Choose a customer segment

It’s usually better to pick a customer segment you want to serve than to build a solution and then figure out who needs it.

By concentrating your customer development efforts on a certain customer segment, you can gain deeper insights. Your initial idea might be wrong. But if you follow the customer development process correctly, you will know what their real problems are and what kind of solutions they need.

Focusing on a certain customer segment will also help you save time. Your time will not be lost if you focus on figuring out how you can help a particular customer segment rather than validating your product.

How to choose a customer segment

If you have easy access to your potential customers, finding people for customer development interviews will comparatively be easier. Customer acquisition can also be a lot easier. If you don’t have access to the customer segment you want to target, starting and building your business will take longer because you’re going to have to get access to the people first.

You need to understand the willingness to buy among the particular customer segment. Some customer segments might be less likely to use new technologies compared to others. In a b2b situation, some industries and companies are more likely to adopt new technologies compared to others. Some customer segments will also have greater budgets than others. Some customer segments take longer to decide and actually purchase the offering compared to others, which can mean longer sales cycles.

If your goal is to build a big company, you’ll want to be in a big market. You need to understand what your growth goals are to help you decide which customer segment to go after. Serving a very niche customer segment might not lead to as large of a business compared to serving a large customer segment.

Identify problems

When you have identified a customer segment you want to serve, the next step is to identify problems and unmet needs. To identify problems and unmet demands, you need to conduct customer development interviews. By asking the right questions and listening effectively, you can learn about customer pain points and generate startup ideas to solve those problems.

Some useful questions to ask in the customer development interviews are:

What are some of the biggest problems do you face as a [customer segment]?
How big of a problem is this? [market size]
Have you tried to do something about the [problem]?
What did you do and what were the results? [solution]
How much did it cost you in money or time or emotion? [pricing]

Look and listen for people complaining and taking action to solve their own problems or meet their own demands.

One way to learn about problems worth solving is simply to be observant of what people complain about.

You can also look for solutions that people are putting together themselves. If they’ve taken the effort to make something themselves, such as a spreadsheet, it’s a sign that it’s an important problem for them. If someone hasn’t taken any action to solve a given problem that they have, it might be an indication that it’s either not a major problem, or that they don’t have any interest or motivation to solve it.

With the right customer development tactics, you can learn about the problems people have and how you can solve them. Customer development is generally used to validate startup ideas. But you can also use it to generate startup business ideas.

If you have just started a business or planning to start one very soon, use our AI-powered business assessments to help you make fast well-informed decisions on every aspect of the business.

FAQ – Finding Startup Ideas by Identifying Problems

Q: What is a better approach to getting startup ideas? A: Instead of solely thinking of startup ideas, it is more effective to look for problems. Solutions to problems can lead to some of the best business ideas. By identifying real problems and addressing them with valuable solutions, entrepreneurs increase their chances of success.

Q: How can I find problems that can be turned into business ideas? A: The process begins with selecting a specific customer segment that you want to cater to. Conduct customer development interviews with this segment to understand their problems and identify potential business ideas. By listening to their needs and pain points, you can uncover valuable insights for developing solutions.

Q: Should I choose a customer segment before developing a solution? A: Yes, it is generally better to select a customer segment first before building a solution. By focusing your customer development efforts on a specific segment, you can gain deeper insights into their problems and needs. Initially, your idea might be incorrect, but following the customer development process correctly will help you understand the real problems and required solutions.

Q: How do I choose the right customer segment? A: Consider the following factors when choosing a customer segment:

Access: If you have easy access to potential customers, it will be easier to conduct customer development interviews and acquire customers.
Willingness to buy: Understand the willingness of the particular customer segment to adopt new technologies or make purchases.
Budget and sales cycle: Different customer segments may have varying budgets and decision-making timelines, which can impact your business.
Market size and growth goals: If your goal is to build a large company, target a customer segment in a sizable market that aligns with your growth objectives.

Q: How do I identify problems within my chosen customer segment? A: To identify problems and unmet needs, conduct customer development interviews with your chosen customer segment. Ask questions such as:

What are some of the biggest problems you face as a [customer segment]?
How significant is this problem? (Assess market size)
Have you attempted to address this problem? If so, what did you do and what were the results? (Explore existing solutions)
How much did it cost you in terms of money, time, or emotional effort? (Consider pricing)

Q: Are there other ways to identify problems worth solving? A: Yes, there are additional methods to identify problems:

Observe complaints: Be attentive to what people complain about, as it may indicate prevalent problems in need of solutions.
Look for self-made solutions: If individuals have taken the initiative to create their own solutions, such as spreadsheets, it signifies the problem’s importance.
Assess motivation: If someone has a problem but has taken no action to solve it, it could indicate either a minor problem or a lack of interest in finding a solution.

Q: Can customer development be used to generate startup business ideas? A: Absolutely. While customer development is commonly used to validate startup ideas, it can also be employed to generate new business ideas. By utilizing effective customer development tactics, you can uncover problems people have and discover how to solve them, leading to potential startup opportunities.