The most interesting technology startups, in my experience, are those who are trying to do something new.
In Europe, prior to the Enlightenment, one group of people who tried to do something new were the alchemists. Classically stereotyped as people who sought to create gold from base metal, they were lampooned by Tim McInnerny as Lord Percy Percy with his nugget of purest Green. His depiction was of a group of people who attempted, seemingly at random, to apply treatments and actions in order to create change.
The alchemists were swept away, in part, by the propagation of the scientific method throughout Europe. The scientific methods remains with us today, informing the approaches we take to discovery – and arguably creating innovation cycles that are faster than any could have imagined a thousand years ago.
Do you want to be an alchemist or a scientist? I subscribe to the latter approach over the former – and I believe that those establishing startups should view them through the lens of a scientist, treating them as an experiment
What does this mean? To me it means following an ordered process in order to best understand what you observe and maximise your chances of proving your hypothesis.
Think back to school – hypothesis, methodology, results, conclusion (no, I cannot forget!) – and take the same approach. With reference to startups, I would summarise the scientific method as follows:
- Question – how can consumers and/or businesses most effectively complete an activity?
- Observe – what do they currently do, what are the deficiencies to the approach? Coupons in magazines in 2008 – why?
- Hypothesise – we believe that businesses / consumers would use coupons more if they were online, promoted on single days
- Create a methodology – build a site, and promote it for those interested in saving money via coupons; get businesses to provide aggressively priced coupon deals on a daily basis
- Analyse the results – are people using my coupon site? Is the promotion right, are the coupons offering deals in the right industries?
- Interpret – yes, people really like daily coupon sites
- Create a new hypothesis – people are willing to pay a monthly subscription of £15 to access my daily coupon site
New businesses are created by inquisitive minds who ask questions and observe deficiencies. However, just having a great idea (or a hypothesis) does not mean automatic success.
Consider your business – are you sitting in a candle lit room in a pointy hat, creating nuggets of purest green? Or are you a scientist in a laboratory conducting a series of experiments to prove or disprove hypotheses about businesses and consumers? I know which I’d rather be.