Every startup starts with an idea.
But how do many entrepreneurs actually come up with those ideas? The reality may surprise you.
We are angel investors who spent the last couple of years interviewing 18 Harvard Business School alumni on their experiences starting companies, for a book called Smart Startups.
For the HBS grads-turned-founders we spoke with, there was no "light-bulb moment" when their business idea struck them. On the contrary, all had embarked on a true ideation process. They vetted ideas often hundreds of them-over weeks, months, or even years.
In our interviews, we identified two types of ideation: organic and deliberate. With organic ideation, the entrepreneur develops an idea based on his or her life experiences or those of family and friends, and builds it over time. With deliberate ideation, the entrepreneur has no specific idea to start with, and instead embarks on a process to find one.
No matter the process, however, our founder interviews revealed that any successful business idea has three factors: a large market opportunity, relevant founder skills, and a huge amount of passion for the project. You might call the fertile ground between these factors "the ideation triangle."
To see how a successful business idea takes root, let's follow one of the founders on his journey: We'll use Matt Salzberg, who graduated from HBS in 2010 and founded meal delivery service Blue Apron in 2012. His company reached a valuation of $2 billion in 2015, went public in 2017, and was just acquired by Wonder Group this past September.
1/ A large opportunity
This story is from the January - February 2024 edition of Entrepreneur US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January - February 2024 edition of Entrepreneur US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Doing Good Is Good for Business
Want to grow your franchise? Invest heavily in your community.
You're Never Out of Options
An entrepreneur's path is never simple or easy-but you have more opportunities than you think.
YOUR NEXT RECRUIT COULD BE A ROBOT
Across the franchise industry, brands are putting AI to use in all kinds of novel ways. From customer service to better marketing and quality control, here's how brands are taking the leap into automation.
'MY JOB IS TO KEEP THIS BRAND HOT'
Taco Bell's new CEO is, in his words, \"not the dictionary definition of a CEO.\" But he has a vision for how to keep their winning streak going.
These Franchise Trends Are Hot!
If you're looking to buy a franchise, start with this list. We break down 10 of the industry's hottest trends, and more than 400 brands to choose from.
How He Opened 10 Franchises in 10 Years
After being laid off twice in two years, Josh Grinstead became a GYMGUYZ franchisee and now makes more than $1 million in annual revenue. Here's his playbook.
Busting 3 Major Franchising Myths
Is franchising really just for the affluent looking for a turnkey, \"easy\" path to success? No, no, and no!
Which Franchise Model Is Right for You?
There are two big ones: You're either a location-based business, or you're service-based. Here's how to decide between them.
Ready to Own Your Own Business?
This magazine is designed to help you. Here's how.
Charities Are Getting Down to Business
Nonprofits are struggling. That's why more charitable leaders are taking a page from their for-profit peers-and learning how to make money.