Not all Startups are Equal: Problem solving? or Invention cool new thing?
<p>When it comes to the world of startups, it’s crucial to understand that they’re not all cut from the same cloth. Broadly speaking, startups can be categorized into two distinct types: Problem Startups and Invention Startups. Each of these categories has its own unique set of strategies, risks, and types of founders who excel in them.</p>
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<h1>Problem Startups</h1>
<p>Problem Startups are those that zero in on a specific issue or ‘pain point’ that needs solving. In the business-to-business (B2B) realm, this could be a glaring operational inefficiency. For consumer-oriented startups, the focus might be on challenges related to transportation, logistics, communication, or even social relationships.</p>
<p>These startups often kick off with a rudimentary technological solution. The emphasis here is not on the technology itself but on the problem that needs solving. Take Groupon, for instance. According to its founder Andrew Mason, the initial version of Groupon was nothing more than a makeshift WordPress blog. The team cobbled together a basic site and manually sent out coupon PDFs via email. Despite its simplicity, this was enough to validate the concept and demonstrate that it had a market.</p>
<p>In the B2B sector, many Software-as-a-Service (SaaS) companies start as Problem Startups. They often have a user-friendly interface but might be running on nothing more than a spreadsheet or manual data entry system in the background. Zenefits, for example, appeared seamless to customers, but behind the scenes, it relied heavily on manual labor, as revealed by a Buzzfeed investigative report.</p>
<p><a href="https://ericclfung.medium.com/not-all-startups-are-equal-problem-solving-or-invention-cool-new-thing-5ab207198df6"><strong>Read More</strong></a></p>