Do You Need a Brand New Idea for a Startup?

New ideas are overrated. Just stick to the basics and do what works.

In this post, let's discuss why new ideas are overrated and you just need to stick to the basics. Startups are generally known for "new and unique" ideas. So people generally think that you need a new idea to build a startup. This assumption is wrong. This perception exists in the market because the 1 in 100 startups who have tried new ideas and succeeded make it to the news.

The media doesn't write stories about a person who has quit his corporate job after 5 years, started a startup, and now makes 2 to 3 times more money than his salary and has more freedom. Such news is not exciting, so we think such startups do not exist. But there are plenty of real-world stories of sustainable Micro Startups and that's what we want.

Sustainable, Boring, and a Profitable Micro Startup

I am not saying that you should not innovate and put a dent in the universe. You should. But innovation is done along the way, not when you are just starting.

You first need to make enough revenue and profits to become sustainable. You don’t want to be in a situation where you start looking for a job again. Successful businesses are boring and it involves doing the boring but working things over and over again until you gain momentum.

Only a sustainable startup can build innovation on top of it. Innovation and new ideas need a foundation. Your responsibility is to build that foundation, for your personal life and your business.

To make sure your startup stays alive and you don't quit, the minimum required number would be $10,000 a month or 10 Lakhs INR a month with at least 30% profit margins. You take home $3000 a month (or 3 lakhs a month approx) so that you can continue working on your startup. The numbers are not big enough that you can call yourself wealthy, but it’s not small enough that you need to consider shutting down your startup and finding a job.

The monthly revenues and profits might vary from person to person, depending on location, country, depending on family status, and other metrics. If you are a cab driver in New York, you would need to make $10,000 a month to barely survive. I am taking this in an Indian context for someone who is less than 40 years of age.

To reach this first goal of survival mode, there is no need for a brand new idea or a concept. You can choose something that is working and do it well. Choose your micro-niche and become the category leader of your niche. Don't go for make-or-break ideas. Go for sustainable and proven ideas so that you can build a foundation.

Building Your Startup Around Your Expertise

If you are just out of college (or dropped out from college) and thinking of building a startup, think again. We may have seen in the news that Mark Zuckerberg dropped out and built Facebook. Bill Gates dropped out and built Microsoft. But they are exceptions.

Many people drop out and never get a good job, and they go broke. They don't build the next world-famous company. If you are trying to build a Micro Startup and have no experience or expertise in a specific field, it is highly recommended that you first master a specific skill and get a job or a freelancing gig first.

Without having any kind of expertise, it's not a good idea to jump into building a Micro Startup.

(On a side note, for people who are just getting started with their career, we have programs like Micro Internship and Mastery Club that help you learn digital marketing to get a job or become a freelancer.)

For example, I built my expertise in digital marketing, worked for 5 years as a digital marketing manager in startup companies, then became a digital marketing freelancer, started digital marketing training under the brand "Digital Deepak" and eventually built a digital marketing agency.

I did not quit my job and started building my Micro Startup until I had some savings and some side hustle income to give me confidence that I could survive without having a monthly salary. Financial planning and frugality will give you the ability to take the risk of quitting your job.

Working ON the Business

If you are reading this, I am assuming that you have at least 3 years of work experience in a specific field. You have either done a full-time job, worked as a consultant, or a freelancer. Until now you were trading your time for money, but you need to transition from that.

A Micro Startup will help you leverage your expertise with branding, marketing, sales, processes, and a team that will execute even in your absence.

Building a highly successful Micro Startup that makes millions of dollars a year is not an easy task but there is a starting point to the journey and that's what you are doing right now. It’s a journey worth starting and you have a much higher chance of success than winning a lottery or becoming a movie star.

It is not a gamble to start a Micro Startup. If you follow the proven systems and processes that I teach you, success is a certainty, not a possibility. You will build conviction as you keep reading what I’ve to say. You will gain confidence by looking at other’s success stories as well.

The best way to start generating some income for your Micro Startup is to expand on the expertise that you already have. You have been offering your expertise as an employee, freelancer, and consultant. Now this has to be packaged into a scalable model so you are not always trading your time for money. You will be working ON the business, not IN the business.

Some offers are not scalable but will bring in revenue early and will be profitable. Some offers will be very scalable but need time, effort and money to be invested early on before it starts giving you a profit.

I have developed a model called the "Startup Offers Quadrant". In the next post, we will do a deep-dive into all the different types of business models under a Micro Startup.

Leave a comment below and let me know what you think. Do you think it is necessary to have a brand new idea to build a startup?

Cheers,
Deepak Kanakaraju