How to Create an Innovative Startup with the Potential for Quick Growth?

What is Innovation? According to the OECD (Organisation for Economic Co-operation and Development), innovation is both a process and an outcome involving the production, adoption, assimilation, and exploitation of a value-added novelty in economic and social spheres. Innovative is about offering something significantly better than existing products, services, or processes.

Why is it so crucial for a startup to offer something significantly better than existing products, services, or processes? The answer lies in Prospect Theory. According to this theory, people are generally hesitant to switch to new products or services due to the fear of losing the efficiency or safety of their existing choices. ?Therefore, for a new product or service to entice people to make the switch, it must be approximately twice as good as existing options to overcome this psychological barrier.

Of course, you can invest heavily in PR for your new startup. Still, you will only effect a fundamental change in society's preferences if your new product is truly exceptional and productive. Otherwise, you will find yourself in a perpetual cycle of trying to prove your worth without being so compelling that people talk about your product without needing any advertising.

The Path to Achieving Exceptional Results

According to Laszlo Polgar's theory, anyone can be a genius. However, to become a genius and create a great startup, you need to practice continuously. It's all about creating a critical mass of skill and creativity to innovate effectively.

It's crucial to invent a new solution or significantly improve an existing one. In a previous article, we discussed how to identify the proper social identity groups and timing for your product. This article and principle will help you to find the right problem that your solution should be addressed.

After identifying a tangible problem, you should invent a new solution or make significant improvements to an existing one to help a group of people address it in their daily lives.

For this action, you will need the following Ingredients for Innovation:

• Creativity: Creativity helps synthesize new solutions, either by combining existing ideas or thinking of something completely new. Regular engagement in brainstorming and creative thinking will strengthen your cognitive skills. Use different brainstorming methods to invent new solutions. Creativity is a cognitive function of the human brain. The brain possesses neuroplasticity, meaning that at any age, it has the potential to increase its capacity and efficiency. Much like a muscle, if you consistently exercise your brain, it becomes more powerful.
• Critical Thinking: Critical Thinking as a Creativity is also a cognitive function of the human brain. This mental skill involves analyzing, comparing, and making decisions. When inventing something new, you must analyze and compare it to existing solutions before deciding if it's worth developing.
• Technical Knowledge: This is essential for assessing the feasibility of your innovations. You must understand the technical constraints and possibilities of transforming your ideas into reality.
• Business Knowledge: Knowing how the startup ecosystem works will help you shape your innovative solution into a viable product using a suitable business model.

Testing and Market Entry

Based on this process, you'll develop an initial product that should invariably be tested on real customers. Initially, be prepared for some degree of confusion among potential users, as they may need more clarification on what you're offering; this is an indicator of the product's novelty. When encountering something new, people tend to compare it to their existing understanding, knowledge, and beliefs. If they can't find a familiar reference point, they may struggle with acceptance, assuming it won't work. Therefore, when introducing a new concept, it's beneficial to compare existing solutions to ease their understanding of your product's advantages. For instance, when Steve Jobs introduced the iPod, he described it as a music player capable of storing 10,000 songs. Analogies like 'Uber for X' or 'Airbnb for Y' make new ideas more relatable.

Engaging Early Adopters and Influencers

You can begin by presenting a rudimentary prototype or sharing details about the functionality of your new product or service and then register your first beta customers. If you find that people are eager to be part of your new venture, it's a strong indicator that you're on the right track. However, if you encounter difficulties, especially if you believe your product is exceptional, consider collaborating with influencers to help promote it. This taps into the Social Learning effect. If adoption still doesn't take off, it's a sign that you may need to refine the product itself, its user interface and user experience (UI/UX), or even the business model.

Iteration and Improvement

Keep iterating through the same cycle until you find a structure that works. Also, try to initially connect with the 2.5% of people classified as 'innovators,' as they will be the first to adopt your product and influence early adopters.

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