Indeed, great entrepreneurial ideas are everywhere. But how does one unearth this spark of inspiration? Paul Graham, the Silicon Valley startup guru and founder of Y Combinator (YC), once penned an extensive essay dedicated to the art of finding great ideas for startups.

I believe that whether or not you aspire to be an entrepreneur, this question will inevitably cross your mind at some point. It seems to be the quintessential query on everyone's mind when it comes to entrepreneurship: What business idea truly holds promise?

In addressing this inquiry, Paul Graham has crafted an exceptionally classic piece that I have revisited countless times—a lengthy, insightful composition titled 《How to Get Startup Ideas》.

This profound article not only delves into the heart of the matter but also sheds new light with each read.

Today, we will delve into the core viewpoints of this article, blending them with my own experiences and insights. This article will touch upon many evaluative and opinionated aspects. So, how can you best leverage this piece? I hope that beyond merely reading it, you will revisit it at opportune moments—perhaps when a sudden idea strikes you, when a friend seeks your opinion on their thoughts, or even when you embark on creating something of your own.I trust that upon revisiting the article, you will gain a fresh and profound understanding.

In essence, I envision this article as a timeless and ever-relevant entrepreneurial guide—a piece that transcends time and offers perennial wisdom. Whenever you open it, no matter how many times, may you always find something of value.

 

01

CREATING WHAT PEOPLE WANT

 

To create something people want in terms of entrepreneurial ideas, Paul Graham has observed a common mistake made by many startups over the course of his decades-long experience: building something that nobody needs.

Reflecting on the story of Artix we discussed yesterday sheds light on why Y Combinator's motto is "Make something people want." Paul Graham himself, drawing from his engineering and arts background, once created a service that allowed gallery owners to showcase art online. However, the art community showed little interest in this online venture, with many even shying away from computers altogether. Ultimately, the company failed. Hence, the crux of entrepreneurship lies in creating something that people genuinely need.

Graham emphasizes that the best way to ensure the demand for what you build is to create something that you are intimately familiar with and truly need.

• Phil Knight of Nike was a long-distance runner, hence his unwavering passion for creating running shoes.

• Mark Zuckerberg, the mind behind Facebook, being introverted and not adept at social interactions, saw the value in creating an online platform for connecting with others.

• Do you recall how Hermès came to be? It was simply due to founder Thierry Hermès noticing that the collars on horses used for pulling carriages were uncomfortable and prone to chafing, leading him to innovate more comfortable harnesses for the animals.

Initially, these ideas may seem trivial. After all, who could have foreseen that something as simple as making burgers and fries slightly faster, akin to McDonald's, could evolve into such a massive enterprise? Yet, these entrepreneurial ideas, rooted in genuine needs, are exactly what people desire.

This brings us to the first rule of good entrepreneurial ideas:  Create something that people genuinely want, starting from what you are most familiar with or even what you personally need.

 

02

"Why hasn't anyone done this?" How do you uncover your own needs in everyday life? A fantastic way is to ask yourself, in your daily routines or at work, have you ever suddenly thought, "Why hasn't anyone made this thing? If someone made this, I would definitely pay for it."

Additionally, pay attention to whether your colleagues and friends have mentioned similar ideas. For instance, 'If I could stay at someone else's place for a lower cost and save on hotel expenses, that would be great,' or 'I don't want to buy a car, but having an on-demand dedicated driver would be amazing'—these notions might initially sound far-fetched, but in reality, if a concept were entirely unfeasible, people often wouldn't bring it up. Hence, those seemingly challenging concepts often harbor business opportunities, and most importantly, they stem from genuine, existing ideas with market demand.

This is the second key to exceptional entrepreneurial ideas: actively observe those moments in life where the question 'Why hasn't anyone done this?' arises.

 

03

QUESTONGING THE TAKEN FOR GRANTED

 

Another powerful method to unearth excellent entrepreneurial ideas is to learn to question things that seem unquestionable.

In our daily lives, we often become accustomed to the things that surround us, but great entrepreneurial ideas possess a unique quality: you might not see anything wrong with the current state of affairs until these ideas emerge, and then you can never return to your previous life.

For example, why does society rely on cash? Is it possible that we could live entirely cashless? Think about it now—can you imagine going back to a life without mobile payments? Or consider this: why can't we choose our seats when buying movie tickets? Is it feasible to pre-select seats?

There are even those who have pondered a grander question: must humanity remain confined to Earth? Could we evolve into a multi-planetary species? As you can imagine, once you take that step, there's no turning back.

Of course, we needn't always focus on such monumental matters. Even the smallest details in life can be refined. For instance, "Duolingo" raised a question: does fragmented learning yield poor results? Must knowledge always be conveyed through text? By paying attention to these seemingly obvious aspects, you may birth remarkable entrepreneurial ideas.

This leads us to the third rule of exceptional entrepreneurial ideas: learn to challenge the things in life that seem unquestionable.

Regarding this rule, Paul Graham aptly puts it: "Good entrepreneurial ideas are 'noticed,' not just 'thought of.'

 

04

HOW MANY PEOPLE NEED TO APPROVE OF YOUR IDEA?

 

However, this line of thinking inevitably raises a crucial issue. After launching a startup project, you might indeed have a group of people who genuinely need it. Yet, because you're altering something deeply ingrained in everyone's routines or addressing a complaint from yourself or a colleague, chances are the initial target audience might not be vast.

Furthermore, here's the underlying reason: if a large number of people urgently require something and it only takes a handful to swiftly bring it to life, chances are it already exists.

So, what to do if the potential customer base is not substantial? The right answer is: it doesn't matter. We've reiterated this point many times before, but it bears repeating: rather than having ten thousand people think your product is okay, what you truly need are a hundred passionately devoted fans of your product.

We can even take a more radical stance. If many people think your product is pretty good, there's an eighty percent chance that your idea is not reliable—because perhaps no one will actually use it, or your concept remains superficial.

For example, if you tell someone you want to open an exceptionally delicious Pizza restaurant, chances are no one would reject the idea.

However, this idea lacks practical significance because anyone could conceive of it. Similarly, even seemingly intelligent large corporations might dismiss your idea. For instance, after producing the first Apple computer, Wozniak felt obligated to discuss it with his then-employer HP, to see if they were interested in manufacturing it. However, HP found the Apple I too basic and didn't give it a second thought. Today, we might all owe a debt of gratitude to HP's arrogance.

Therefore, let's put the fourth rule about entrepreneurial ideas bluntly: a startup idea that garners too much approval from people may not withstand scrutiny.

 

05

Potential large market

 

Of course, the ultimate goal of entrepreneurship is to scale up. Initially, your product may not cater to a substantial audience, but that's okay. As long as it resides within a potential large market, there's no issue.

Airbnb stands out as a prime example. Initially, the number of people willing to sleep on a stranger's mattress was minimal, but as long as you operate within the vast market of accommodations, patiently nurturing your venture, expansion to a significant scale becomes a certainty.

Similarly, selling books online might not yield high profits at first, but armed with Bezos's strategic brilliance and two decades of patience, one can eventually transition to selling everything under the sun online.

This encapsulates the fifth rule of excellent entrepreneurial ideas: starting with a small audience is inconsequential, as long as you position yourself within a potential large market.

After absorbing these five rules, you likely realize that when it comes to entrepreneurial ideas, following your instincts and judgments is paramount.

 

06

ARE YOU THE PERSON WHO GETS THINGS RIGHT?

 

Now, here comes another question: How can you ensure that your inner feelings are reliable?

Paul Graham once said something profoundly thought-provoking. He mentioned, "The answer to this matter is both brutal and intriguing—if you are a reliable person, then your intuition won't lead you astray." In simpler terms, if you find yourself at the cutting edge of a rapidly evolving field and have a hunch that something is worth pursuing, chances are you're onto something.

It may sound a bit mystical. Years ago, when I first encountered this notion, it seemed unbelievable.

But now, I wholeheartedly believe in it. Essentially, what Paul Graham is conveying is this: no good idea springs forth spontaneously; inspiration and intuition are actually rooted in repeated, extensive practice.Being at the forefront of a certain field doesn't necessarily mean you have to be the one driving its development. You could just as well be an advanced user. It's not as challenging as it seems.

Take Zuckerberg, for instance—a devoted engineer who spent his days in front of a computer. So, for him, creating Facebook was a natural progression. Yet, if you were to ask a middle-aged individual around 2004 if they'd be willing to semi-publicly share their personal life online, they'd likely think you were nuts. But Zuckerberg was already living in the digital realm, so crafting a website was a straightforward task for him, leading to the seamless birth of Facebook.

In fact, upon closer reflection, becoming a trailblazer in a field isn't as daunting as it appears.

Consider this small scenario: if you dedicated a year to thoroughly researching the most cost-effective and reliable methods for medical check-ups abroad, chances are you'd become one of the foremost authorities in that field within a year. Along this journey, you might stumble upon fantastic entrepreneurial ideas, and by that time, your ideas are likely to be quite sound. Even if your initial direction isn't entirely accurate, adjustments can be made gradually.

Imagine this—a startup endeavor could consume 8-10 years of your life, shaping the next decade or even two. Spending a year preparing is entirely reasonable, especially since it doesn't have to be a full-time commitment. Graham once referenced a line from "Zen and the Art of Motorcycle Maintenance": "Want to create a perfect piece of work? First, strive for perfection within yourself, then create freely."

This leads us to the sixth rule of exceptional entrepreneurial ideas: To generate great entrepreneurial ideas, first transform into the person capable of conceiving them.

 

07

Trouble is the barrier

 

Ah, the woes of obstacles! Indeed, amidst the entire process of pondering, we must engage in a battle with our very human nature. Paul Graham advises that when contemplating entrepreneurial ideas, it is crucial to remember to shut off two major "filters" in our minds. One is termed the "boredom filter," while the other is the "disgust filter."

These translations might not be immediately clear, but in essence, it's quite straightforward: when evaluating an entrepreneurial idea, we often get scared off by the mundane, trivial, and distasteful aspects within it, hence shying away from pursuing it.

Everyone dreams of effortlessly starting a business, coding up some beautiful lines, maybe even finding a CTO to handle the technicalities, uploading it all onto servers, and waiting for the cash flow. But alas, such scenarios are mere fantasies.

For instance, you might find going downstairs to eat a hassle and wish you could just order in. Yet, the thought of dealing with a myriad of restaurants, each with their peculiar owners, might make you reconsider and opt to stay put. Or perhaps, launching a community where everyone can ask and answer questions seems appealing, but the initial phase of shamelessly reaching out to numerous individuals for contributions and managing the platform doesn't seem quite worth the trouble.

There are tasks that sound dreadfully boring, nothing like the glamorous image of entrepreneurship we hold dear, such as hoarding a bunch of domain names to sell at the right moment, or developing a cloud storage system. Ironically, these are the very things that people are genuinely willing to pay for.

Hence, oftentimes, our emotions and irrationality lead us to dismiss numerous ideas. In the process of contemplating entrepreneurial concepts, the most crucial yardstick is whether there is a genuine need for it. Everything else is a hurdle you must overcome. This brings us to the seventh rule of exceptional entrepreneurial ideas: Do not fear tedium and inconvenience, for they are the authentic barriers to entrepreneurship.

 

08

Let's talk about competition, shall we?

The last concern that often crosses people's minds when considering entrepreneurship is competition. You might frequently find yourself in a situation where you think you've got a brilliant idea only to immediately worry, "But someone has already done this, I'm too late." Well, let me tell you, don't let that thought scare you off.

In reality, entering a "crowded market" signifies that you are in the right place. After all, where on earth can one find so many geniuses who can come up with something that billions of people worldwide haven't thought of?

If you delve into business history or continue following this column, you'll realize that truly impactful companies were not the first ones to do what they do.
Google wasn't the first search engine, Facebook wasn't the pioneer social network, Uber wasn't the inaugural ride-sharing app, Meituan certainly wasn't the first group-buying website, and Alibaba and Tencent weren't the first e-commerce platforms or online chat tools.

The crux of the matter isn't doing something no one else has done; it's about uncovering something that everyone else has overlooked. That is the key to triumph.

Google invented the PageRank algorithm, setting itself apart from all other search engines by aiming for you to find results quickly and move on;

Facebook started from elite universities, emphasizing real-name policies as pivotal;

Uber understood that once network effects kick in, former luxury rides could be cheaper than taxis; 
Starbucks grasped that anyone can run a coffee shop, but creating a "third place" where everyone wants to hang out is the essence of their business.

Ultimately, you'll discover that very few startups are truly killed by competitors. Your success or failure largely hinges on yourself and luck, with competitors playing a minimal role.

If you genuinely aspire to achieve greatness, then face yourself authentically. This brings us to the final statement: Competition is not important at all; understanding what you're doing is the real key to victory.

 

Summarize

 

Summary of the Eight Most Important Realizations About Entrepreneurial Ideas

So, here are the eight most crucial insights I've shared with you today regarding entrepreneurial ideas. Just as I mentioned at the beginning, these eight statements are intended to inspire your creativity and fortify your determination when you revisit this article in the future.

Let's recap these eight statements together one last time:

1.Create something that people need, starting from what you are most familiar with or even what you yourself need.

2.Observe moments in life where you wonder, "Why hasn't anyone done this?"

3.Learn to question things in life that seem taken for granted.

4.A business idea that too many people approve of may not withstand scrutiny.

5.It's okay if your initial audience is small, but position yourself in a potential large market.

6.To come up with great entrepreneurial ideas, become the kind of person who can generate great ideas.

7.Do not fear tedium and inconvenience; they are the true barriers of entrepreneurship.

8.Competition is not important at all; understanding what you're doing is the real key to victory.

Remember these points, let them guide you on your entrepreneurial journey, and may they reignite your inspiration and determination whenever you need it.

 

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