Every great business begins with an idea… and knowing where great ideas come from is essential to being a great entrepreneur. Some of the most important work you will ever do on your business occurs right at the beginning. How to come up with a tech startup idea, and then turn this business idea into a business concept while addressing the market need, is important.
There’s a long punch list of things to chase down, from outlining the unique insight to capturing how customers might respond and sizing the market you’re going after. To put it differently, if you want to find the next great startup idea, you can’t just wait for the hypothetical lightbulb moment — you have to do your research. Ultimately, staying open-minded and persistent is crucial in navigating how to come up with a profitable tech startup idea that resonates in the competitive tech landscape.
As you consider successful startup ideas, consider the following questions to help you overcome possible constraints:
- Is there a clear demand or idea around gap in the market for the product or service you plan to offer?
- What unique value does your small business offer? How does it solve a problem or fulfill a need better than existing solutions?
- What technology is lacking that is preventing you from achieving your ultimate goal?
- What can you do now to allow you to put into effect your more ambitious objectives later?
- What are the potential risks and challenges your business might face, and how do you plan to mitigate them?
Where do Startup Ideas come from?
Exploring how to come up with a tech startup idea involves understanding emerging trends and technological gaps. Entrepreneurs get their unique business startup ideas to ignite profit from a variety of sources. Some ideas appear just by chance. The entrepreneur may have started with a hobby or a solution to a personal problem with no intention of turning it into a virtual reality, only to discover that there was a high demand for it.
However, more often than not, a founder will have a new idea for a problem they want to solve and varying levels of conviction about how to commercialize it.
Then there’s the third group: people who want to be entrepreneurs and love the idea of starting a business and being successful but aren’t sure what to build it on. They are the ones who must understand the art of brainstorming business ideas and identifying market gaps and opportunities. Brainstorming sessions can be instrumental in discovering how to come up with a tech startup idea that solves a prevalent problem.
Also Read: HOW CAN ENTREPRENEURS TURN BUSINESS IDEAS INTO BUSINESS OPPORTUNITIES: 6 PROVEN STEPS
How To Come Up With A Tech Startup Idea? 10 Proven Frameworks for 2024
1. Solve a Personal Problem
Some of the most successful startups were established to address the personal issues of their founders.
For example, the idea for Airbnb emerged when the founders, Brian Chesky and Joe Gebbia, faced a problem. They struggled to pay their rent in San Francisco. With a design conference in town, they discovered that hotel rooms were limited and expensive.
To address this issue, they decided to turn their apartment into a makeshift bed-and-breakfast for conference attendees, providing air mattresses and breakfast.
Consider the global perspective and explore how to come up with a tech startup idea that can address needs on an international scale. This experience sparked their idea when they noticed a need for alternative accommodations during high-demand events. Their straightforward but innovative solution of renting out extra space in their apartment paved the way for the creation of a larger-scale home-sharing platform. Encouraging creativity and fostering a culture of innovation is key to exploring how to come up with a tech startup idea that stands out.
Also Read: STANDING OUT IN A COMPETITIVE MARKET: 26 INNOVATIVE IDEAS FOR BUSINESS STARTUP
Incorporating sustainability and social impact into the process of how to come up with a tech startup idea can create purpose-driven ventures. The bottom line is that you can easily build something, but you need to be more rigorous in your approach if you want to increase your chances of creating something that solves a real problem.
2. Consider Your Passion
“Follow your passions” is a piece of generic advice you’ve probably heard a lot, whether it’s applied to finding a career or coming up with a startup idea. However, there is some benefit to it in terms of developing a business idea.
The most successful startups succeed because their founders are passionate about the projects and remain committed to working on them through all of the ups and downs.
Consider that it takes an average of ten years to develop a startup into a strong, established company — you don’t want to be working on something you’re not passionate about for the next ten years, do you? To get startup ideas that you’re passionate about, consider an area or industry in which you’d be happy to work on a project for the next decade, even if it didn’t succeed.
Collaborating with diverse teams can also facilitate brainstorming on how to come up with a tech startup idea that combines varied expertise. Then, try to come up with different product/service ideas based on that. This even helps you to generate enormous passive income.
This informative guide will help you find your passion: HOW TO FIND YOUR PASSION AND PURPOSE – PASSIONPRENEUR
3. Employ Jobs-To-Be-Done Framework
The jobs-to-be-done (JTBD) framework is a powerful tool to generate new startup business ideas, in which the entrepreneur attempts to understand the specific goal (the “job”) of potential customers, as well as the thought processes that would enable that customer to use a product or service to complete the job.
Automation is an excellent example of this. Automation, digitization, and transformation are currently top of mind for many customers looking to increase business efficiency by eliminating simple tasks.
For example, the adoption of the Jobs-to-be-Done framework was instrumental in McDonald’s implementation of the drive-thru service. Understanding that customers weren’t just purchasing food but seeking a swift and convenient meal solution, especially during time-pressed situations, McDonald’s identified the core job as “accessing quick meals without leaving their vehicles.”
McDonald’s transformed the fast-food experience by aligning their service with this fundamental job, solidifying drive-thru service as an integral part of their offering and meeting customers’ needs more effectively.
4. Adopt Top-Down Approach
The top-down approach to come up with startup ideas looks for new technologies or situations in the world to build a company around, rather than creating a product or service to solve a personal problem, as the bottom-up approach does.
For example, the top-down approach used by IBM in software development is visible in its strategic planning and project management methodologies. IBM’s leadership would establish overarching strategic objectives that would be aligned with market demands and technological advancements from the very beginning. These goals frequently included product innovation, market expansion, or technological breakthroughs.
Experimenting with prototypes and Minimum Viable Products (MVPs) can refine how to come up with a tech startup idea into a viable concept. So, if you use a top-down approach to build a successful small business concept around a new technology or situation, keep the execution in mind. Otherwise, you risk developing something too late, when there is no longer a good product-market fit.
5. Employ Strategic Foresight
One of the great startup ideas is strategic foresight as it involves making educated and informed predictions. To find an idea for a startup, look at past recurring trends and consider how they might affect the future to try to predict future market trends. Embracing a user-centric approach is crucial in determining how to come up with a tech startup idea that addresses genuine user pain points. Considering scalability and future trends contributes to the process of how to come up with a tech startup idea that has long-term potential.
Trends and developments in the political, economic, social, technological, and legal environments are specific areas to consider when employing strategic foresight.
For example, perhaps you believe that certain laws will be rewritten shortly to allow new types of lucrative online businesses to operate. This is exactly what happened with Indiegogo, the largest crowdfunding platform in the world.
Danae Ringelmann, the founder of Indiegogo, predicted that Securities and Exchange Commission (SEC) laws prohibiting people from investing their money online would be revised because they were written when modern technology did not exist.
Also Read: 15 BEST BUSINESS IDEAS WITH LOW INVESTMENT IN INDIA
This strategic foresight inspired Ringelmann to launch Indiegogo. She was right about the SEC law changes, and Indiegogo was one of the first major crowdfunding platforms when it launched in 2007.
6. Think of Variations of a Recent Successful Business Model
Look for up-and-coming businesses or your business structure that are getting attention due to their recent successes and develop fresh variations of them is a brilliant startup idea.
A great example of this is American Express, a financial services giant, was founded in 1850 with an emphasis on express mail, which allowed it to move funds, valuable goods, and stock certificates throughout its native state of New York and later other states. But in the middle of the 20th century, American Express reimagined what it stood for and reinvented itself by providing charge cards that gave consumers and companies access to credit. The company had over 110 million credit cards in circulation as of December 2019, with roughly 55 millions of those cards being used in the United States.
7. Analyze an Industry that is Broken
Researching industries and analyzing potential niches aids in determining how to come up with a tech startup idea with market potential. Many industries are out of date and find it difficult to adapt to the demands of their consumers today. Validating the feasibility and market demand is essential when contemplating how to come up with a tech startup idea. One could think of ideas to develop new products or services in any of these industries.
A good example of this is Mixpanel. Mixpanel is a real-time analytics platform that helps companies track user engagement and behavior. Before founding Mixpanel, this startup founder was working with Slide, a business that produced sophisticated analytics software for internal initiatives. The founder then realized that other companies would need those same tools, and that’s how he came up with Mixpanel.
8. CrowdSource an Idea
Even if you don’t have a personal problem that a product or service can solve, someone close to you might.
To help you come up with an idea, ask your friends, family members, colleagues, and other people in your social and professional circles what products and services they wish existed. People with expertise and experience in specific areas can be particularly interesting to talk to if you know them. Networking with experts and innovators can provide insights into how to come up with a tech startup idea that disrupts existing markets. They can provide insight into specific problems in various industries or areas of life where you may lack personal experience.
9. The 10x Rule
The 10x rule states that you can create a great product by “10xing” something — making it 10x easier, 10x faster, 10x more fun, or 10x better in some other way. So, to get a startup idea this way, look at things that already exist and think of ways to generate startup ideas that help you build a profitable tech business.
A good example is Superhuman, an email app that redesigned the email experience from the ground up to deliver the “fastest email in the world.”
10. Iteration As Innovation Or Coming Up With A Low-Cost Variation
Iterating rather than doing something completely new is a final, perfectly valid option to start a startup. Many great ideas have led to successful businesses. Taking that concept and modifying it can result in a very profitable startup.
Tesla cars aren’t successful because they represent a completely new approach to car manufacturing and design. Tesla vehicles look and drive like regular automobiles. The Tesla company has achieved great success despite its lack of innovation because it can replace the car’s outdated fuel source with a more modern and superior one.
Coming up with a low-cost version of a product is another way to enter and disrupt a market to build a successful startup.
Consider the popular ride-hailing apps Uber and Lyft. Traditional taxis used to charge $50+ for a ride that cost $20 on Uber. Because of the ridiculously low prices, these apps became popular among users. What’s more interesting is that, even with such low rates, Lyft and Uber drivers were still making decent profits.
15 Best Tech Startup Ideas
1. Artificial Intelligence
Artificial intelligence has been receiving a lot of attention over the last ten years, and it will undoubtedly continue to advance. AI will be used by the majority of mainstream businesses in the future, creating many startup opportunities. Embracing failure as a learning opportunity is integral when figuring out how to come up with a tech startup idea that evolves and adapts.
GROWTH STATISTICS
The global artificial intelligence (AI) market size was estimated at US$ 119.78 billion in 2022 and it is expected to hit US$ 1,591.03 billion by 2030 with a registered CAGR of 38.1% from 2022 to 2030.
2. Cloud Technology
Immersing oneself in technology forums and hackathons is a proactive way to uncover how to come up with a tech startup idea. Cloud technology, also known as cloud computing, refers to the ability to access and store data and programs on the Internet. Cloud computing enables businesses to become more agile and competitive by utilizing software and IT infrastructure. It can also provide faster innovation, more flexible resources, and scale economies.
Also Read: 11 EASY HACKS: HOW TO SCALE UP A BUSINESS FINANCIALLY
GROWTH STATISTICS
The global cloud computing market is projected to grow at a compound annual growth rate (CAGR) of 16.3% through 2026. By 2027, banking, software and information services, and telecommunications will collectively spend $326 billion on public cloud services.
3. Biotech Startups
Leveraging emerging technologies like AI or blockchain can inspire how to come up with a tech startup idea that leverages innovation. Every year, a large number of biotech startups appear alongside the swift advancement of technology. Because biotechs are crucial to enhancing the quality of human life, governments and angel investors support these startups and give them exposure.
GROWTH STATISTICS
With 1,128 biotech startups established in 2021, three biotech startups were incorporated on average every day. Such impressive growth has laid the groundwork for an ambitious goal: nearly doubling the bioeconomy’s size in three years and reaching $150 billion by 2025.
4. Cyber Security
Most businesses are increasing their cybersecurity spending in response to the serious threat posed by cybercrime. This development shows that a cyber security startup will never run out of customers, making it an extremely lucrative industry to explore.
GROWTH STATISTICS
Iterating on initial concepts enhances the process of how to come up with a tech startup idea by refining and improving the idea. The market for cyber security is predicted to grow to $352.25 billion by 2026, which makes it a brilliant idea to establish a cyber security startup.
5. EdTech Startup
The integration of computer hardware, software, and educational theory and practice to promote learning is known as educational technology. EdTech companies use technology to help educators function more efficiently and to provide education.
GROWTH STATISTICS
Analyzing successful startups can offer inspiration on how to come up with a tech startup idea by adapting or improving existing models. With more than $4 billion in total funding, the EdTech industry in India emerged as the most well-funded startup segment in 2021. That is 1.7 times the amount raised between 2014 and 2020.
6. Telehealth
Telehealth is one of the great tech business ideas. Telehealth facilitates communication between patients and healthcare providers.
You have two options to consider for telehealth solutions:
- Synchronous solutions: These applications enable patients to connect with healthcare providers via audiovisual connections.
- Asynchronous solutions: These platforms allow medical practitioners to access patient medical histories online.
Interested in launching a telehealth-based business? Here’s your roadmap:
- Familiarize yourself with telemedicine laws in your state.
- Conduct a competitive analysis.
- Strategize on features and pricing for your service.
GROWTH STATISTICS
The telehealth market size was valued at USD 128.12 billion in 2022 and is projected to grow from USD 142.96 billion in 2023 to USD 504.24 billion by 2030, exhibiting a CAGR of 19.7% during 2023-2030.
7. e-Commerce Startup Business Idea
When thinking about innovative startup ideas, eCommerce is often the first idea.
Successful companies like Amazon and Alibaba serve as a great example in the eCommerce sector.
To capitalize on this opportunity, here are the essential steps to follow:
- Research the market to identify your niche.
- Choose a business name and structure.
- Obtain an EIN (Employer Identification Number).
- Obtain necessary permits and licenses.
- Select a platform and develop your eCommerce website.
- Source or develop products and list them.
- Implement effective marketing strategies to promote your online store.
The startup costs for an eCommerce venture can vary based on local legal requirements. Remember, starting small and utilizing multi-channel marketing are crucial strategies for success in eCommerce.
8. Social Media Consultancy
Social media is a powerful tool for connecting with a wide audience.
Many businesses seek experts to manage their social media presence, which can significantly accelerate their growth.
If you know how to wield social media effectively, this could be the right business for you.
Your role would involve engaging the public and ensuring your clients avoid actions that could lead to issues on platforms like Twitter.
This business can earn you $15 to $20 per hour per client!
Follow these steps to kickstart your social media consultancy:
- Research and select a niche.
- Continue learning through online courses.
- Build your credibility and reputation.
- Gain initial experience and expand your portfolio.
- Actively participate in social media.
- Create valuable content.
- Network and build connections.
These steps can guide you towards launching a successful social media consultancy—a great idea to gain competitive advantage.
9. Biotech Company
Despite the high costs associated with the biotech industry, numerous startups launch each year.
It’s now feasible to establish a biotech company even with a modest budget ($0-$200k initial investment).
Here are steps to initiate your Biotech Business:
- Ensure your idea addresses a genuine market need.
- Identify founders and key personnel.
- Secure a reputable attorney.
- Incorporate your company as a C Corporation once investor interest is confirmed.
- Develop a comprehensive marketing and business strategy.
- Operate your business virtually.
- Progress the technology.
These steps can guide you towards launching a successful biotech startup, making it accessible for many entrepreneurs to brainstorm ideas and
10. Website Development
Web development companies differ from web design firms in their focus and expertise. While a web design firm primarily crafts the layout and visual elements of a website, a web developer is deeply involved in coding, both basic and advanced, to build the software and applications that drive the site.
Web designers prioritize user interface and visual design, ensuring a seamless user experience. On the other hand, web developers implement functionalities and features through coding, making sure the website operates smoothly and efficiently.
Exploring the distinction between web development and web design can offer good ideas for product development tailored to the local market and helps to build a successful company.
11. Live Chat Services
In today’s fast-paced environment, prompt responses are crucial.
No matter the industry, delayed customer replies lead to immediate customer loss.
This is where live chat services shine, meeting customer expectations for real-time support. With a capable team, offering this service can be a profitable business idea, paving the way for profitability and success.
GROWTH STATISTICS
A majority of consumers, 63%, favor using Live Chat for support communication. Implementing Live Chat can boost revenue per chat hour by 48% and increase conversion rates by 40%.
12. Digital Marketing
Marketing has dramatically evolved from pamphlets to television and now to smartphones, all to capture the target audience’s attention.
If you’re wondering how to come up with a tech startup idea, consider digital marketing. With the right creative team, starting a digital marketing agency can be a fantastic venture.
Here are some straightforward steps to help you establish your digital marketing agency:
- Enhance your digital marketing knowledge and confidence.
- Decide on the services you will offer.
- Plan how you will operate your business.
- Register your company.
- Build an online presence.
- Showcase your expertise and experience.
- Choose the right tools.
- Define your business model.
- Develop your portfolio.
- Set up your processes.
- Assemble your digital marketing team.
13. Robot Delivery Setup
Robots have long been envisioned as the future, but that future is now becoming a reality with their widespread adoption across various tasks, including deliveries. Today, robots are being employed to deliver groceries, food, and packages, marking a significant advancement.
Businesses can choose to either develop their own delivery robots or opt to rent or purchase them to launch a delivery service. Major eCommerce giants like Amazon have already integrated robots into their logistics operations, utilizing wheeled containers designed specifically for efficient product delivery. While building a robot can range from $5000 to $175,000 depending on features, renting offers a comparable cost-effective alternative.
The rise of Robot-as-a-Service (RaaS) models has democratized access to robotic technology, empowering startup founders, successful entrepreneurs and established companies alike to explore profitable delivery business opportunities.
GROWTH STATISTICS
The autonomous delivery robot market is projected to expand significantly, with estimates suggesting it could grow to $10 billion by 2035, up from $2 billion in 2022. This growth is anticipated to maintain a robust compound annual growth rate (CAGR) exceeding 35% from 2023 through 2035.
14. Social Media Influencer
A single post on social media, like a tweet or reel, has the power to impact millions of people.
Today, about 80% of a brand’s return on investment (ROI) comes from social media influencers. Instagram influencing alone has become a $1.7 billion industry.
To succeed as an influencer, follow these steps for generating startup ideas:
- Choose a specific niche
- Select your preferred social media platform
- Engage with and understand your target market
- Develop a strong content strategy
- Maintain consistent interaction with your audience
- Invest in quality equipment
- Foster a sense of community
- Continuously research and grow
These steps can lead to a successful journey as a social media influencer, making it a good startup idea.
GROWTH STATISTICS
Influencer marketing campaigns generate $5.78 in return for every dollar invested. 60% of marketers intend to boost their spending on influencer marketing in 2024.
15. VR/AR
Virtual Reality (VR) and Augmented Reality (AR) have experienced significant growth in the past three years.
Before the pandemic, VR was primarily celebrated within the gaming industry.
However, since the pandemic, these technologies have found extensive use in business contexts, such as training through AR and orientation via VR.
To evaluate startup ideas in this field, consider two key questions: (i) What problem am I aiming to solve? (ii) Is VR/AR the optimal solution for this problem?
Once you’ve clarified these points, follow the steps to generate and refine your startup ideas. This includes assessing business strategy and identifying your target market.
GROWTH STATISTICS
India’s e-commerce industry is projected to achieve INR 4,416.68 billion by 2024, growing annually at 11.45% to reach INR 7,591.94 billion by 2029. Meanwhile, UPI transactions surged to INR 125.94 trillion in 2022, serving a user base exceeding 800 million.
Bottom Line
It’s easy to become stuck when you look for startup ideas and feel like none of them are good. You’ll be much more likely to generate a startup idea that’s viable enough to launch if you use the strategic frameworks covered in this article along with some of the best startup ideas in the tech industry. Seeking mentorship and guidance assists in understanding how to come up with a tech startup idea that aligns with industry standards.
Read this informative guide to protect your startup from failing:
THE 10 TOP REASONS WHY STARTUP FAILS IN 2024: WILL YOURS BE A STARTUP FAILURE TOO?
How To Come Up with a Tech Startup Idea FAQs
Q1. Can a Non-tech Person Start a Tech Startup?
Ans. It is undoubtedly possible. A brilliant idea doesn't require you to be a programmer. Whether you have experience with technology or not, this article covers the essential knowledge to have before launching a technology business.
Q2. What are the New Tech Ideas?
Ans. 1. Computing Power.
2. Datafication.
3. Artificial Intelligence (AI) and Machine Learning.
4. Augmented Reality (AR) & Virtual Reality (VR).
5. Digital Marketing.
6. 3D Printing.
