Earning Millions By Helping Start-Ups: Weird But True
Businessman Eckersley-Maslin has greatly contributed to the success of young entrepreneurs with his own company.
Many have always wanted to become a million-dollar entrepreneur in the future. However, establishing a business, no matter how big or small, is a difficult, challenging, and unpredictable process.
Young entrepreneurs often stumble at the beginning because of something they can completely avoid, according to investor Sebastien Eckersley-Maslin, founder of Australian startup BlueChilli.
According to Sebastien, entrepreneurs often come up with an idea that they think customers will love, but it only meets one side or ignores the actual need altogether.
He notes that most people will come up with a solution first without scrutinizing the problem.
In 2018, a study by investment firm CB Insights confirmed that what Sebastien noted makes the problem troublesome and unsolvable.
The survey results also show that the inappropriate market accounts for 42% of the reasons why startups fail. Other common reasons include insufficient funding, lack of manpower, market competition and poor time management.
"However, we can easily get around this problem by validating your idea early," says Eckersley-Maslin.
Usually, that can be done by developing a prototype. It is the Minimum Viable Product (MVP) in the business book The Lean Startup. That allows you to gauge customer feedback. However, it is an economic and time consuming process. So Sebastien recommend using a hypothetical risk test to find out what's right for your business.
Indicate the most risky assumptions.
Check those risky assumptions. For example, looking for customer feedback.
Use these insights to find the real crux of the matter.
BlueChilli helps entrepreneurs build and test their products by recommending that they go through the process using its free idea development tool - StartupU. To date, the Sydney-headquartered has 132 startups with total assets of about $550 million.
Eckersley-Maslin is not the only proponent of this approach to business development. LinkedIn education expert Whitney Johnson recommends that founders start by identifying a problem that needs solving, and then start finding solutions.
"Startups are best when their businesses are built around problem-solving, not technology," says Prentice.
H/T: cnbc.com
Many have always wanted to become a million-dollar entrepreneur in the future. However, establishing a business, no matter how big or small, is a difficult, challenging, and unpredictable process.
Young entrepreneurs often stumble at the beginning because of something they can completely avoid, according to investor Sebastien Eckersley-Maslin, founder of Australian startup BlueChilli.
Source: Business Insider Australia
Understanding the problem that needs solving
"It may seem obvious, but you'd be surprised how many people overlook it," Eckersley-Maslin told CNBC Make It.According to Sebastien, entrepreneurs often come up with an idea that they think customers will love, but it only meets one side or ignores the actual need altogether.
He notes that most people will come up with a solution first without scrutinizing the problem.
In 2018, a study by investment firm CB Insights confirmed that what Sebastien noted makes the problem troublesome and unsolvable.
The survey results also show that the inappropriate market accounts for 42% of the reasons why startups fail. Other common reasons include insufficient funding, lack of manpower, market competition and poor time management.
"However, we can easily get around this problem by validating your idea early," says Eckersley-Maslin.
Usually, that can be done by developing a prototype. It is the Minimum Viable Product (MVP) in the business book The Lean Startup. That allows you to gauge customer feedback. However, it is an economic and time consuming process. So Sebastien recommend using a hypothetical risk test to find out what's right for your business.
How to test risk assumptions?
Source: Getty Images
Indicate the most risky assumptions.
Check those risky assumptions. For example, looking for customer feedback.
Use these insights to find the real crux of the matter.
BlueChilli helps entrepreneurs build and test their products by recommending that they go through the process using its free idea development tool - StartupU. To date, the Sydney-headquartered has 132 startups with total assets of about $550 million.
Eckersley-Maslin is not the only proponent of this approach to business development. LinkedIn education expert Whitney Johnson recommends that founders start by identifying a problem that needs solving, and then start finding solutions.
Source: Getty Images
"Startups are best when their businesses are built around problem-solving, not technology," says Prentice.
H/T: cnbc.com
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