Going after big problems vs building realistic, profitable solutions

[journeyman]

A lot of high-level entrepreneurs suggest trying to solve really big problems.
Let's talk about how this compares to handling smaller problems which have a clearer path to a solution and financial independence.

It appears that to solve a big problem, you need a co-founding team and venture capital backing which leave you with very little control. On the contrary, small businesses don't need cofounders and often don't need additional employees except only to scale. In the first case, you are a small albeit important part of a systematic effort to solve this problem. In the latter case, you have 100% control and complete responsibility for success or failure.

Furthermore, it is quite common for efforts to tackle big problems to fail spectacularly after several years, leaving you with nothing. On the contrary, small businesses can fail quickly, allowing you time to pivot or move on.

From just these, would it be reasonable to assume that a scalable solution to a smaller problem is a more probable way to achieve financial freedom?
Now the complicated part: What if solving a big problem is really exciting and motivating for you, but creating a solution for a problem that you don't really care about isn't?

I'd love to get some more opinions on this subject. Of course, there is an ultimate benefit for me as it will help me address a dilemma.
For reasons of analogy, let's assume that we would be interested to undertake an effort for a new cancer drug, versus creating a new SaaS app to solve a scheduling problem.

What are your thoughts on this and what some other differences you see between the two ventures?

 

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[MHP368]

I feel like those are bad criteria for choosing some need to fill (some frustration to solve)

CENTS does a fine job without muddying the waters , does it scale? Does demand exist? Etc

Do that as a spreadsheet.

I would say for most folks stuck in action faking / wantrepreneur land the final consideration might be "how soon can I grt cracking?"

It would be so easy to convince yourself a big problem was a legitimate venture and waste all your time and money when the local landscaping companies (just an example) are ripe for the picking with beautiful margins and all youd need to start is some hedge clippers and garbage bags and a little moxy.


Get a business to make you financially independant and then maybe you can start looking at bigger problems.


So unless your particular skillset and circumstances just drop some opportunity like that in your lap I think its folly. Top of my head I cant think of any billionaires or millionaires who made their fortunes attacking some 1 in a million pie in the sky weird problem , even if they pivoted into something like that it seems started much simpler (fill a need , help someone do a thing)

 

[DeletedUser0287]

Depends on what you value.
Financial freedom in my opinion comes from the latter. If you go the big idea route, although very noble, you are just working for investors. Like you said, lack of control. Your example was a cancer drug, if it was a concept that was hard proven to be possible then it might not be a bad idea. I’m currently doing the latter.

I want control, even if my funds are limited. Although Saas is primarily labor based it seems. So you won’t have that problem.

 

[Digamma]

Profitable big problems first, world-changing big problems later.

When you have the leverage you need to do it right.

It appears that to solve a big problem, you need a co-founding team and venture capital backing which leave you with very little control.

Is that a good position to be in?

Might it be that the people who encourage you to "pursue big problems" are in the business of providing venture capital?

From just these, would it be reasonable to assume that a scalable solution to a smaller problem is a more probable way to achieve financial freedom?

Yes, 100%.

Now the complicated part: What if solving a big problem is really exciting and motivating for you, but creating a solution for a problem that you don't really care about isn't?

Then you're chasing an emotional high, not value.

But if it helps, look at it like this. It's training. You're getting the experience, skills, and leverage to tackle bigger problems tomorrow.

 

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[ZF Lee]

Profitable big problems first, world-changing big problems later.

'Regular' problems can look like world-changing big problems to some folks, especially for those from developing countries.

For instance, the folks I meet on my meetup.com adventures still think that digital marketing and online education as a novelty, like the Holy Grail...

...when its been here for goodness knows how long.

Probably that's why gurus in my country still thrive...they feast on this ignorance, and sell courses left, right and center. If I can remember Lex's post on types of gurus, they cover the Tier 1 to 2 gurus.

Question though: Does the market and customers know there's a problem they hate in the first place?
Do they want it solved with some kind of product?

 

[journeyman]

Some great points.

@Digamma : Maybe that's the best path after all. Be financially independent by going after any kind of solvable problem, in the process getting all the valuable skills. Later on, if your life's mission is to solve world-changing problems, you already have the skills and enough capital to hit the ground running.

@ZF Lee : Interesting, reminds me of an email newsletter I read recently that says that all you need to do in order to get a good first-time business, is export a viable business model from one country, to another country that doesn't have it. Annoyingly, every idea I've tried to 'model' in my own country seems unrealistic either due to small population or high taxes. Definitely, something to keep an eye out for though.

 

[Digamma]

@ZF Lee: That's why I said profitable big problems.

Annoyingly, every idea I've tried to 'model' in my own country seems unrealistic either due to small population or high taxes.

The UK is the 5th biggest economy in the world, the most business-friendly country in Western Europe, and you can serve the US as well easily.

 

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[journeyman]

@ZF Lee: That's why I said profitable big problems.
The UK is the 5th biggest economy in the world, the most business-friendly country in Western Europe, and you can serve the US as well easily.

Haha that must have sounded like the worst excuse of all time. I am originally from Greece so I meant Greece. The UK is without a doubt a great place to start a business. But in terms of copying existing models from the US, we really have everything here. Even paleo food subscription boxes!

 

[Digamma]

Haha that must have sounded like the worst excuse of all time. I am originally from Greece so I meant Greece. The UK is without a doubt a great place to start a business. But in terms of copying existing models from the US, we really have everything here. Even paleo food subscription boxes!

I hate this idea of copying business models.

Solve deep-running problems instead. The business model comes from the solution.