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How To Come Up With Great Startup Ideas (and Avoid the Usual Pitfalls)

If you want to start a business but don’t have the perfect idea yet.

Good news: you don’t need a “brilliant” idea right out of the gate. In fact, many successful startups began with something simple or even unimpressive on the surface — and then evolved through great execution, iterative learning, and user feedback. I was in the same situation many times with this article I want to make your journey easier. 

Below is a guide to help you avoid common mistakes, evaluate startup ideas, and uncover new opportunities.

1. Common Mistakes in Generating Startup Ideas

Mistake #1: Believing You Need an Amazing Idea to Start

We often think Google or Facebook was a stroke of genius from day one. Not quite true. Google was the 20th search engine. Facebook was the 20th social network. Their success came from strong execution and continual improvement — not a sudden lightbulb moment. So, don’t wait for an ultra-brilliant idea before you begin.

Mistake #2: Jumping into the First Idea Without Reflection

A second big error is going all-in on the first half-baked idea that pops into your head. If a startup succeeds, you’ll spend years working on it. Doesn’t it make sense to spend at least a few weeks making sure you’re solving the right problem? The sweet spot lies between “instant first idea” and “waiting forever” for a mythical perfect idea.

Mistake #3: Starting With a Solution, Not a Problem

Many founders dream up a new “Uber for plumbers” or “Airbnb for dog groomers” without confirming a real market pain point. This is what’s called a “Solution in Search of a Problem” (SISP)” — and it usually leads nowhere. It’s far better to pinpoint an actual problem people have, then craft your solution around it.

Mistake #4: Thinking Startup Ideas Are Rare

It may feel like every good idea is taken, but trust us — the world has countless unsolved problems. Master the art of noticing them, and you’ll never run short of potential startup ideas. Often, good ideas just need a founder ready to notice the gap and say, “Let’s fix it.”

2. How to Evaluate Your Startup Ideas

You’ve got a few ideas in mind. Now what? Use this simple formula to score each idea across four areas, then average the results:

Market Size/Potential

  • Are there large companies doing something similar? Is there potential for this market to become huge in the future?

Founder–Market Fit

  • Do you or your co-founders have experience or expertise in this domain? Familiarity can be a game-changer.

Certainty of Solving a Real Problem

  • Have you (or people you know) actually struggled with this issue? Real-world pain points tend to make stronger business cases.

New or Important Insight

  • Are you discovering something that others dismissed? Airbnb succeeded in part because most assumed inviting strangers into your home was weird — but the founders had the insight that it could work.

Good Signs You’re on the Right Track

  • You Want the Product Yourself: If you’re scratching your own itch, you already have one enthusiastic user (you!).

  • Recently Possible: Maybe a new technology or regulation allows a solution that didn’t exist before.

  • Competitors Exist: Surprisingly, a few competitors is a good sign — it means there’s real demand, and you can try to build a better version.

3. Watch Out for “Filters” That Might Hide Great Ideas

Even if you’re aware of the common mistakes, you can still unconsciously filter out strong startup ideas because they seem:

  • Too Hard: Complex regulations, tough partnerships, or “boring” industries may be gold mines in disguise.

  • Boring: Payroll software or payment infrastructure might not sound flashy, but they solve painful, real issues.

  • Too Ambitious: Don’t be scared off by big ideas just because they sound intimidating. Many large-scale successes started that way.

  • Crowded: Having competitors can actually validate the demand for a solution. Focus on how you can do it better.

4. Generating Startup Ideas: 7 Proven Approaches

If you’re ready to brainstorm proactively, here are seven methods to spark ideas. They’re not all equally reliable, but each has produced real-world successes:

Play to Your Team’s Strengths

  • Think about where you (or your team) have specialized knowledge. Maybe you’ve spent years in healthcare, logistics, or SaaS — that’s an “unfair advantage” you can leverage.

Build What You Wish Existed

  • If you often find yourself saying, “I wish there was a tool for ___,” that’s your clue. DoorDash famously started because the founders just wanted Thai food delivered in the suburbs.

Ten-Year Passion

  • Ask yourself: “What would I be thrilled to work on for a decade, even if it failed?” Just ensure it also has a business case.

Look for New Waves

  • Any recent shifts in technology, economics, or regulation? Even a small change can create massive market gaps.

Adapt Existing Successes

  • Notice successful companies and consider a regional, niche, or tech-based variation. Always confirm a realproblem exists, rather than a forced clone (“Uber for X”).

Crowdsource Ideas

  • Talk to experts or people who face recurring pains in their work. Problems they complain about could be potential startup ideas.

Disrupted Industries

  • Sometimes entire sectors are known to be outdated or inefficient. If you have domain experience, you can bring fresh solutions to these broken industries.

Final Thoughts

Building a startup doesn’t require a miraculous “aha!” moment. Focus on real problems, ensure you have (or can develop) domain expertise, and don’t dismiss challenging or “boring” industries. Armed with the methods above, you’ll see potential startup ideas everywhere — and you’ll be far better equipped to evaluate which ones are worth pursuing.

Ready to Take Action?

  • Step 1: Reflect on problems you’ve personally experienced at school, work, or in your own life.

  • Step 2: Check for market viability. Does this issue affect enough people to sustain a business?

  • Step 3: Score your idea using the four criteria (market size, founder–market fit, problem clarity, unique insight).

  • Step 4: Start small, talk to users, and refine until you’re solving a validated problem.

With these steps, you’ll move beyond guesswork and into the realm of real, actionable startup ideas — ones that can spark genuine innovation and help you build something meaningful. Go get started!