Why do most startup ideas fail?

“Because they (the entrepreneurs)

Start by trying to brainstorm startup ideas. This period is doubly dangerous: it not only gives some good ideas; it results in bad ideas that seem plausible enough to entice you to work on them,” says Paul Graham, investor and co-founder of Y Combinator.

The discovery phase, which is the first phase of the start-up projectis about sorting the good ideas from the bad. This article is written to give you some actionable steps that will make this process easier and hopefully help you find a project idea that is worth your time and energy.

1. Identify and resolve everyday business problems

One of the easiest ways to generate a startup idea is to observe the problems you encounter in your daily, usually professional, life. Small inconveniences or inefficiencies in common processes can often reveal significant opportunities. By focusing on practical solutions to familiar problems, you can find ideas that have immediate appeal and tangible benefits for users.

Start by noting downsides in your work or areas where you think a process could be simplified or procedurally improved. Over time, patterns may emerge, pointing you toward an idea that might be worth developing.

2. Study niche markets

Getting involved in niche markets is another effective way to discover startup opportunities. These markets, often neglected by large companies, are more likely to have needs that are not yet fully met. By focusing on a niche, you can target an audience that presents unique challenges and often high engagement potential.

For example, pet technology is a niche industry that has seen growth over the years. Products such as GPS pet collars or animal health tracking apps appeal to a small but engaged market. According to a survey conducted by the American Pet Products Association, Americans spent over $100 billion on their petswhich suggests that even smaller niches in the overall pet care market can be lucrative.

3. Follow emerging trends

Following trends, particularly technological and societal ones, can help you identify startup ideas with potential. Trends often signal changes in behavior or demand that create new gaps in the market. By paying attention to these changes, you can position yourself early in an emerging space and take advantage of first-mover advantage.

Simply put, being active in a new market and technology would put you in the best position to act first on the unsolved problems in that new market.

For example, remote work is a trend that has rapidly accelerated due to the COVID-19 pandemic, giving rise to tools like Zoom, Slack and Asana, which addressed the communication and productivity needs of distributed teams . Consider looking at current trends such as AI, renewable energy, genomicsor the gig economy. Analyzing these trends can provide insight into what people are likely to need soon and inspire relevant startup ideas.

4. Engage with potential users early on

Interacting with potential customers or users before you even have a concrete idea can help you understand the problems they are facing. Direct conversations provide insights that market research alone can’t always capture, including the specific frustrations, needs, and preferences of your target demographic. Asking questions and listening carefully can guide you toward startup ideas that solve real problems.

You can, for example, join online communities, social media groups, or forums where people discuss issues in specific areas. These conversations can be especially helpful if you’re considering an industry or market that you don’t fully understand. Getting involved early allows you to develop a product that is already aligned with user needs, increasing its chances of success.

5. Quickly test and validate your ideas

Follow the “fail fast” mantra.

Once you’ve identified a potential idea, testing it quickly and discarding (or changing) it quickly can save you time and resources in the long run.

Instead of creating a fully developed product from the start, create a minimum viable product (MVP) or even a simple prototype that allows the concept to be validated with real users. This process helps determine if there is real demand for the product before investing too heavily.

Platforms like landing pages, online surveys or simple prototypes allow you to gauge interest from the start. For example, Dropbox tested their idea by releasing a video explaining the concept before creating a full product, which allowed them to gauge demand without a large upfront investment. Testing your idea before you even have a product can show you if you’re on the right track or if you need to evolve to better meet user needs.