Building A Great Business By Solving Problems
One of the ways to generate a million dollar business or even a billion dollar business idea is to look at the problems around you. Then think of ways that you can solve the problem. Once you have an idea, turn it into a business and provide the best solutions out there. I guarantee you that you will be able to make a lot of money.
Even in day to day examples, we work and get paid for solving other people's problems.
We just don't realize it because the term "job" or "work" has clouded our abilities to realize that we are solving other people's problems.
Even in day to day examples, we work and get paid for solving other people's problems.
We just don't realize it because the term "job" or "work" has clouded our abilities to realize that we are solving other people's problems.
Here are some examples of work that solves people’s problems
- A mechanic solves your problem by making your vehicle run again
- A web designer solves the problem of businesses who don’t know how to make a website for themselves
- An architect solves problems by drawing up brilliant blueprints or plans
- A plumber solves your problem by fixing all your leaking pipes
- A nanny solves a couple’s problems by taking care of their children and giving the working couple more time
- A dog groomer solves your problem by making your pet's hair look more attractive
- A teenager offers to pick up dog poop for the owners and clean the kennel for $5 a day
- The janitor solves the office’s problems of dirt and waste
- A gardener solves your problematic lawn and flowers
Great Entrepreneurs Take Problem Solving To Bigger Levels
Imagine you are a teenager who picks up dog poop for $5 a day. If you have 3 customers a day from your neighborhood, you get to earn $15 a day from this venture.
The teenager earns about $75 per week working 6 days. Then he realizes that many people start to call him and ask him for his services. He manages to do 4 jobs a day and earns $20 a day picking up poop and cleaning kennels. He now earns $120 per week but he soon realizes he has more job offers than time to do it due to his busy school schedule.
Then one day, his little brother tells him "Bro, I want to earn some money too, why don't you give me $3.50 for the job and you keep $1.50". Since the teenager has more job offers than time to do it, he agrees. His little brother does 3 jobs a day after school and the teenager pockets an extra $4.50 a day as a commission.
After doing this for 1 month, the teenager has a brilliant idea!
He decides to start a little business venture with his brother. They will hire 10 interested teenagers to pick up poops. They will source jobs and ask dog owners if they are interested to have a professional (teenager) team to keep their lawn clean from poop, clean up the mess their dogs make and also clean the dog house.
They hand out flyers around the neighborhood and near major stores like Wal Mart. They also set up a Facebook Page in their city. How much does it cost for their professional dog poop service?
$7.50.
$3.50 to each teenager for a job well done and they pocket $4 as their own profit.
By hiring more people to help them do the job, they are soon able to service about 200 customers per week. Even without doing any poop picking service on their own, their associates bring in $800 per week in profit for the business. As word spreads and they became more popular, they start to serve more than 1000 customers per week in their city.
The brothers now earn $16,000 a month from this business and the next step is to expand to another area or city.
I know this picking up dog poop business is silly. But don't laugh yet.
In fact, there is a true story of some folks who made it rich by starting a Professional Dog Poop Remover Business and they are featured in a Bloomberg article which you can read by clicking on the link. According to the Bloomberg article, the business whose name is DoodyCalls:
"People do not like picking up dog poop"
I have first hand knowledge of this and I understand how dog owners feel. I own three dogs and the amount of poop and pee they dump on my lawn is enormous. One day is still ok. But if you do not pick up the dog poop for 2-3 days, the sight and smell of those poop will nauseate and drown you.
And still I find myself so lazy to pick up those poops and hope they degrade and disappear with time. But then my mom complains and complains about them.
If you are a busy businessman or just a very busy person who can afford $15 per week for a dog, you wouldn't mind spending $120 per month for the convenience of never needing to pick up your 2 Siberian Huskies' poop.
How successful is DoodyCalls?
Well, they are featured in Bloomberg, USA Today, Good Housekeeping and even the Wall Street Journal. I think you would need to take scooping up dog poop a serious money making business if Wall Street Journal covers it.
The teenager earns about $75 per week working 6 days. Then he realizes that many people start to call him and ask him for his services. He manages to do 4 jobs a day and earns $20 a day picking up poop and cleaning kennels. He now earns $120 per week but he soon realizes he has more job offers than time to do it due to his busy school schedule.
Then one day, his little brother tells him "Bro, I want to earn some money too, why don't you give me $3.50 for the job and you keep $1.50". Since the teenager has more job offers than time to do it, he agrees. His little brother does 3 jobs a day after school and the teenager pockets an extra $4.50 a day as a commission.
After doing this for 1 month, the teenager has a brilliant idea!
He decides to start a little business venture with his brother. They will hire 10 interested teenagers to pick up poops. They will source jobs and ask dog owners if they are interested to have a professional (teenager) team to keep their lawn clean from poop, clean up the mess their dogs make and also clean the dog house.
They hand out flyers around the neighborhood and near major stores like Wal Mart. They also set up a Facebook Page in their city. How much does it cost for their professional dog poop service?
$7.50.
$3.50 to each teenager for a job well done and they pocket $4 as their own profit.
By hiring more people to help them do the job, they are soon able to service about 200 customers per week. Even without doing any poop picking service on their own, their associates bring in $800 per week in profit for the business. As word spreads and they became more popular, they start to serve more than 1000 customers per week in their city.
The brothers now earn $16,000 a month from this business and the next step is to expand to another area or city.
I know this picking up dog poop business is silly. But don't laugh yet.
In fact, there is a true story of some folks who made it rich by starting a Professional Dog Poop Remover Business and they are featured in a Bloomberg article which you can read by clicking on the link. According to the Bloomberg article, the business whose name is DoodyCalls:
- Charges $15 per week per dog to remove their poop
- Takes about 10 min to clean up dog poop
- The company's annual revenue in 2011 is $4.5 million (might have grown more by now)
- Have 55 franchises in 22 states
- Plans to open as many as 250 locations
"People do not like picking up dog poop"
I have first hand knowledge of this and I understand how dog owners feel. I own three dogs and the amount of poop and pee they dump on my lawn is enormous. One day is still ok. But if you do not pick up the dog poop for 2-3 days, the sight and smell of those poop will nauseate and drown you.
And still I find myself so lazy to pick up those poops and hope they degrade and disappear with time. But then my mom complains and complains about them.
If you are a busy businessman or just a very busy person who can afford $15 per week for a dog, you wouldn't mind spending $120 per month for the convenience of never needing to pick up your 2 Siberian Huskies' poop.
How successful is DoodyCalls?
Well, they are featured in Bloomberg, USA Today, Good Housekeeping and even the Wall Street Journal. I think you would need to take scooping up dog poop a serious money making business if Wall Street Journal covers it.
The Problem Solving Formula
DoodyCalls became so successful and rich because
- They recognized a problem
- They had an idea (crazy at that time)
- They created a service (picking up poop)
- They scale up and serve many many dog owners
- They have a great idea
- They turn their idea into a product or service
- They serve as many people as possible
Start Finding Problems
By the time we are teenagers, we are already experts at finding faults and problems with people, things, places and whatever. We are all in built with the ability to sniff out problems. They may be your own dissatisfaction with life or a product. Or they may be something that your friends always complain about.
Problems are easy to find. You just have to look at yourself and the people around you for ideas.
Once you have identified a problem, ask yourself these questions:
Problems are easy to find. You just have to look at yourself and the people around you for ideas.
Once you have identified a problem, ask yourself these questions:
- Can I come up with something that help me or others solve this problem?
- Can I build a product or service that help solve this problem?
- Is my product or service able to serve hundreds or millions of people every month?
Waze Solves The Problem Of Navigation
I live in Kuala Lumpur, a city whose roads are so hard to maneuver. I don't know how to go to certain places and I rely on one app in the iPhone. Its called Waze.
Waze is a map app company that Google bought for $1.15 Billion according to Business Insider. Please visit the link and read the article. You will see a picture of Uri Levine the co-founder and former CEO of Waze wearing a T-shirt that says "Fall in love with the problem....the solution).
Some of the words are hidden by a jug but i can perhaps guess that it is "provide" the solution.
That is exactly what brilliant entrepreneurs do and it is what you will be learning to do from now on. If there is a problem, notice it and provide a solution. People will pay you money if you can provide a great solution to their problem.
Prior to Waze,
I always get lost when driving in Kuala Lumpur. I remember those times I had to take out a map of Kuala Lumpur and figure out how to drive to a destination. Then along came Waze.
Waze help me solve my problem by:
They identified a problem.
They provided a solution.
And they got $1.15 Billion!
Waze is a map app company that Google bought for $1.15 Billion according to Business Insider. Please visit the link and read the article. You will see a picture of Uri Levine the co-founder and former CEO of Waze wearing a T-shirt that says "Fall in love with the problem....the solution).
Some of the words are hidden by a jug but i can perhaps guess that it is "provide" the solution.
That is exactly what brilliant entrepreneurs do and it is what you will be learning to do from now on. If there is a problem, notice it and provide a solution. People will pay you money if you can provide a great solution to their problem.
Prior to Waze,
I always get lost when driving in Kuala Lumpur. I remember those times I had to take out a map of Kuala Lumpur and figure out how to drive to a destination. Then along came Waze.
Waze help me solve my problem by:
- Showing me the shortest route to a destination
- Gives me clear and accurate driving instructions along the journey
- If I take a wrong turn, it will recalculate another route that brings me to my destination
- It gives me an estimated time of arrival so I don't get mad at the delay and traffic
- I could tell my friends what time I will be arriving
- Waze shows me where and when there is a traffic jam
- Waze users can report road hazards, traffic cameras and policeman which alerts me and other drivers
They identified a problem.
They provided a solution.
And they got $1.15 Billion!
Billionaires Who Made It Big By Solving Other's Problems
Wherever there are problems, some savvy businessman or businesswomen will turn the problem into a money making machine for them. Some examples include:
- Sara Blakely of Spanx found that women have a problem of finding great undergarments that make them look firm. She couldn't find a hosiery that is comfortable as well as helpful to make women's rear look good. An idea of making her own hosiery that helps women feel great and look good came into her mind. Today, she is one of the self-made female billionaires in this world. Check out Spanx timeline to see how this great female entrepreneur started her journey.
- Whatsapp founder Jan Koum became a billionaire by creating an app that allows people to text each other over the internet for free. Prior to that, people in different parts of the world had the problem of high cost when they wanted to text each other on the phone. Whatsapp which is installed on the phone as opposed to other web messaging services makes it feel like people can text each other on the phone for free. You just need an internet connection.
- Jack Ma became a billionaire by coming up with an idea to connect manufactures with buyers. He made the Business To Business or B2B site called Alibaba. Prior to that, buyers who want to find a manufacturer in mainland China found it troublesome to connect with them. Jack Ma solved their problem by making it easy for buyers to locate a supplier through a platform on his site. According to Forbes, Jack Ma is the 33rd richest man in the world with a net worth north of $20 Billion.
- James Dyson became a billionaire through an unlikely source, Vacuum Cleaners. Prior to his creation of the bag less cyclone vacuum cleaner, vacuum cleaners had a big bag behind that performs less well as the bag is filled with dust and dirt. Dyson solved this problem by creating a bag less vacuum cleaner using cyclone technology. This page on Explainthatstuff explains how Dyson's Cyclone Vacuum cleaner solved the problems of previous generations vacuum cleaners. When he helped solved a problem, he made huge money!
Identify A Problem
The first step to coming up with a great IDEA is of course to identify the problem. Read the stories of how successful billionaires created a business by identifying problems and you will get loads of ideas.
How do you identify a problem? Super easy.
How do you identify a problem? Super easy.
- Listen to what you yourself complain about
- Listen to what others complain about
- What are some problems or difficulties you are facing?
- What are the problems or difficulties that the people around you are facing?
Think Of How You Can Solve The Problem
Once you have identified the problem, the next step is to think of how you can solve the problem or make the situation better.
Let's take the example of Sara Blakely. She faced a problem herself when she found it uncomfortable to wear her pantyhose. If you are a women, you will understand the problem and you will know what Spanx can do for you. If you are a men, ask your wife or girlfriends or daughter what Spanx did to overcome their problem. GO on.
When you get the answer you will realize what a brilliant idea Sara Blakely came up with. And she made sure she created a great product to solve the problem.
There are many ways to skin a tiger.
When you identify a problem ask yourself:
A great product or service will have a big effect on the problem. If your idea only reduces the problem by 20% it might not be a great idea after all. Your idea should improve the problem by at least 50% before others will be willing to give you their hard earned money.
Always think like a customer. Does this product help me enough for me to part with my money?
Let's take the example of Sara Blakely. She faced a problem herself when she found it uncomfortable to wear her pantyhose. If you are a women, you will understand the problem and you will know what Spanx can do for you. If you are a men, ask your wife or girlfriends or daughter what Spanx did to overcome their problem. GO on.
When you get the answer you will realize what a brilliant idea Sara Blakely came up with. And she made sure she created a great product to solve the problem.
There are many ways to skin a tiger.
When you identify a problem ask yourself:
- Am I going to create a product?
- Am I going to create a service?
- How will my product or service help the problem?
- Will my product eliminate the problem entirely?
- Will my product reduce the problem?
A great product or service will have a big effect on the problem. If your idea only reduces the problem by 20% it might not be a great idea after all. Your idea should improve the problem by at least 50% before others will be willing to give you their hard earned money.
Always think like a customer. Does this product help me enough for me to part with my money?
Create An Outstanding Product Or Service And Overdeliver
If you have identified a problem, it is most likely that someone in this world has also identified the problem. Once you enter the specific marketplace, you will notice that there are indeed many other products or services that are created to overcome the problem.
Billionaire John Paul Dejoria in an interview with Forbes states the importance of making an exceptional product. He says that you must provide a great service or great product that will put you in the reorder business. Meaning when people use your product, they will love it so much that they will come back for more and tell their friends about it.
That was his recipe for success with Paul Mitchell shampoos.
All billionaires who made it big create great products or services that put them in the reorder business.
Always give customers your best.
In return, they will give you their money.
Billionaire John Paul Dejoria in an interview with Forbes states the importance of making an exceptional product. He says that you must provide a great service or great product that will put you in the reorder business. Meaning when people use your product, they will love it so much that they will come back for more and tell their friends about it.
That was his recipe for success with Paul Mitchell shampoos.
All billionaires who made it big create great products or services that put them in the reorder business.
- Women love Spanx and keep buying them
- iPhone users keep upgrading to the newest iPhones because of Apple's outstanding quality
- People still prefer using Google because their search results are the best and most relevant
- Dyson vacuum are the preferred vacuum cleaner for most people because of the exceptional quality
- You still visit Wal-Mart every week because they got all the things at one place and at a reasonable price
- Facebook is the preferred social networking site because of their outstanding tools that enable people to interact with one another
Always give customers your best.
In return, they will give you their money.
Previous Lesson : How To Come Up With A Great Business Idea (Overview)