While many startups may have a desire to change the world, tackling a small problem can be simpler, more viable route to success. According to a report on Inc., Life is Good is valued at $100 million, having built its brand simply on combating negativity. The company sells everything from T-shirts to stationery, some of which feature its now iconic stick-figure character, Jake.
Life is Good is not the only startup taking a simpler approach to success. Startups like Israeli-based Gigya (data analysis) and Minneapolis-based When I Work (employee scheduling) are solving specific problems that companies face every day – and it’s paying off. Gigya is on its way to a billion-dollar valuation.
Point solutions – apps that also provide an answer to single, simple problems – are also prevalent in fintech, with startups like Trulioo and ChangeJar chipping away at big banks, one product or service at a time. When it comes to funding, Venture Capitalists are increasing looking for startups with a problem-solving mindset.
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Simplicity is also key when making development decisions at the onset. Martin Weiner, CTO of Reddit, emphasized this point at a SXSW interactive conference held in Texas earlier this year. He advised that startups focus on “technologies that will help systems scale quickly, and are easier to employ.” This includes building with what he calls ‘boring tech’ – proven technology that works at any scale.
In the early stages of creating a startup, boring might be the right way to go.
Frequently Asked Questions
Do startups need to change the world to succeed?
The article argued that tackling a small problem can be a simpler, more viable route to success, pointing to Life is Good, which built a $100 million brand simply on combating negativity.
What does Life is Good sell?
Life is Good sells everything from T-shirts to stationery, some of it featuring its now iconic stick-figure character, Jake, all built around a brand of combating negativity.
Which other startups were solving specific problems?
Israeli-based Gigya, in data analysis, and Minneapolis-based When I Work, in employee scheduling, were solving everyday company problems. Gigya was on its way to a billion-dollar valuation.
What are point solutions in fintech?
Point solutions are apps that answer single, simple problems. In fintech, startups such as Trulioo and ChangeJar were using them to chip away at big banks one product or service at a time.
What did Reddit's CTO advise about technology choices?
At SXSW Interactive in 2016, Reddit CTO Martin Weiner advised startups to focus on technologies that help systems scale quickly and are easier to employ, including boring tech, meaning proven technology that works at any scale.