4 questions you need to consider before starting up

Everyone believes they are one in a million. The truth is slightly different. 

There are thousands of versions of you wandering around the planet right now. And some of them are better than you. They are luckier, wealthier, and more confident than you.

Don’t lose heart, though.

You are a better version of a lot of the people out there. To succeed, you only need to beat those 'lesser versions of yourself' to the finish line. 

It's a concept founders can apply to their idea for a startup. Before you do anything else, identify what separates your product or service from the rest of the crowd.

Remember, you don't need to be different from all of them, just most of them. 

I have four questions that I ask founders to help both of us achieve that clarity. 

#1  Why do you want to start something?

"I want to make money" shouldn't be your first thought.

The answer that excites most VCs and potential colleagues sounds something like this: 

"There was this product/service in my life that I had to use because I had no other option. It always gave me a headache. Everything about it was wrong! And then, one day, I decided that there must be a better way to do this!"

What this says is that the founder has discovered a genuine point of friction in the consumer's life, and they are passionate about solving it.

#2 How will your product or service improve your users' lives?

People lead complicated lives. Every day is filled with moments that make them wince literally or metaphorically. They are constantly looking for products or services that can eliminate these pain points.

"I want to reach point B without bothering about which route to take and finding a parking spot when I get there." Cue a ride-hailing app.

"I am in the mood for a burger, but I don't have a clue about burger places near me or which ones are actually good." Cue a food ordering app that showcases authentic user reviews.

Consumers are always hiring products and services to do things that make their lives easier. The best brands solve problems and make their users feel good about themselves. 

What job will your product or service be hired to do? 
And how will you do it better than everyone else?

#3  Does anyone else sell what you plan to sell?

Are there more than three players vying for your users' attention? It's time to think hard about why they will choose you over the competition. If your answer is "My product is 2 times cheaper" or something equally transactional, the road ahead will be tough. 

Talk to your users and listen to their stories. Find pain points that you can use to tweak your offering. Go to market with a product that understands their lives and solves a specific problem. 

Let's say you are done with the development stage; you can still use the insights to build a brand story that will create an emotional connection with your future consumer. 

#4 How will you make money?

"A business without the path to profit isn't a business; it's a hobby."
Jason Fried, co-founder of Basecamp, author of Rework.

Maybe you have a rich uncle ready to fund your idea. Or you have money in the bank that you plan to burn through till you succeed. Good for you.

But the runway will end at some point, and your startup will be forced to take off or crash. It's best to have revenue and profits baked into your plan. At the very least, it will make it easier to find investors for your next round of funding.

Shepherding an idea from concept to reality and then financial success is a long and challenging journey. Obviously, having the answers to four questions is not enough.

But it’s an excellent place to start.