Startup Growth Engines summary

You may have heard this before, but it is worth repeating: the best ideas for a successful new business come from identifying a problem and offering a solution. But how do you find the right problem to solve?

The best kind of problem is one that affects a broad group of people.

Have you ever come across a product or service that ended up becoming an essential part of your life? Some start-ups like WhatsApp and Facebook have managed to create these kinds of must-have products that find their way into customers’ daily routines. So what’s their secret?

These innovations come from keen observation and an understanding of customer needs. This kind of analysis is exactly how Uber targeted their customers in the transportation market. The company found opportunities by looking at situations when people find driving and getting around most problematic: during holidays, sporting events, bad weather or when you’re out on the town.

Once you find your must-have product or service, it might be tempting to launch it on a global scale. But many start-ups have seen this approach backfire. By going too big too soon, you run the risk of spreading yourself too thin and ending up a small player stretched across several markets.

To increase your visibility and gain momentum, it’s better to start big in a local niche market.

Have you ever been scrolling through mobile applications and decided to try out a free version before committing to a purchase? You’re certainly not alone. Many companies know the benefits of offering a non-cost service, or a freemium model, to eventually generate revenue.

A freemium model gives customers a chance to use a basic free service with the option to unlock an upgraded, premium version for a certain price.

While some companies have found success with the freemium model, not all free offers have to involve a basic version of a paid product or service.

Offering free content or tools to the public is another proven way to generate business. Not to be confused with a free demo version of a product, this refers to a free stand-alone offer that aims to help a potential client.

Now that we’ve learned how start-ups quickly maximize their growth, let’s look at two ways to quickly maximize a company’s exposure in the marketplace.

First, viral marketing can be a key to success – even though it is difficult to control.