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How To Use Probability To Your Advantage

Abstract from https://medium.com/the-mission/the-startup-idea-matrix-182bf2e6a53a#.2bn4b7pju and https://www.startups.co/articles/how-to-use-probability-to-your-advantage

In his article based on the startup idea matrix, Eric Stromberg admits that this matrix isn’t exhaustive, but it gives you a general sense of which consumer markets (shopping, media, and finance in this case) are the most crowded ones in general.  Use Probability Advantage Startup idea Matrix 

The matrix also shows there are very few people innovating in areas related to security, seniors, or healthcare. And no one innovating in the parenting consumer market!

Follow this link to view the full matrix

In order to point out the concept that many areas are more developed than others, you can see in CB Insights’ “MGI Industry Digitization Index” (shown below) which industries are most and least “digitized.”

The red areas clearly show which industries are screaming for innovation, so why are they the least talked about? I mean when’s the last time you heard anything about a startup in the hunting sector?

Generally speaking, this seems odd. Entrepreneurs constantly talk about “going off the beaten path”, yet when it comes to action most stay in the smooth asphalt. Maybe this is why 92% of startups fail? After all the main cause is no product/market fit.

With startups, have a product no one needs and you’re gone. But build something people want and you’re in business. Make it look great and your chances of winning go up. Add to that a great team, great execution, a growing market, and treat your customers like kings, your snowballing chances keep growing and growing and growing.

Here we have some examples that if you have the good idea you can succeed in every sectors, also in Artificial Intelligence, Blockchain, or VR which are the latest trends.

  • When all the computer companies were trying to make better hardware, Microsoft focused on selling software. That was a good decision.
  • When the major computer companies were working on desktops, Apple took a different turn and released the iPod. That was a good decision.
  • When the hot thing in Silicon Valley was photo-sharing apps, Uber looked at cars. That was a good decision.
  • We can look at any market. Look at fashion. When everyone else was trying to make better-looking dresses, Spanx focused on hosiery. That was a good decision.
  • Ok, let’s try another industry. Armies of people move to Los Angeles every year to become famous actors, but when Tony Horton decided to try something different he created the world’s most famous workout program, P90X. That was a good decision.

Remember. Your decisions affect your results.

Life is a game of probability.

More details at – https://www.startups.co/articles/how-to-use-probability-to-your-advantage posted by Richard Reis

 

 

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