Section 1.1: A Case Study in Student Innovation

On pitch day, one group presented an idea addressing the lack of convenient storage options on campus. They identified that students living off-campus struggle with transporting their belongings due to the absence of nearby storage solutions.

The group proposed a straightforward and familiar solution: lockers. Specifically, they suggested establishing a company that would install pay-per-use lockers across campus to provide students with a convenient way to store their items during the day.

However, there was a significant flaw in their proposal, which was just a short walk from our classroom.

"I need to show you something," I announced to the class. "Please, stand up and follow me."

I guided my students just outside the classroom, down the hall, and around a corner, where we encountered a bank of lockers.

Yes, that’s right; we had merely walked a few steps from our classroom to find them. And instead of requiring payment, these lockers were available for any student to use at no cost.

Once we returned to the classroom, I posed an important question: "If the idea you just proposed already exists, what does that imply about your concept?"

One student from the group raised his hand and responded, "It’s probably not worth pursuing."

Section 1.2: Understanding the Misconception

At first glance, it might be easy to agree with this student’s conclusion. Many entrepreneurs react similarly when they discover that their concept isn’t unique. They often assume that since another company is already in the space, the market is saturated or not worth entering, leading them to abandon their ideas. However, this isn't necessarily the best approach, as demonstrated by my students’ locker concept.

What the students failed to realize is that I've been giving this assignment for years. Almost every year, at least one group comes up with a similar idea. The fact that students continuously identify the same issue and propose the same solution indicates that the lack of storage is indeed a genuine concern, and lockers are a viable answer.

So, why were my students unaware of the existing lockers nearby?

The answer is often overlooked by entrepreneurs who are too fixated on their product. In this instance, the "product" they wanted—lockers—was already available, yet they were oblivious to it. This highlights that the issue isn't with the product but rather with marketing.

When you believe you've found a unique startup idea only to discover competing businesses already exist, you're not facing a product issue; you're dealing with a marketing challenge.

This distinction is crucial because it implies that the key to succeeding in the market isn’t necessarily through developing an entirely new product. Instead, the path to success lies in executing a superior marketing strategy for the same or similar products. After all, if you were unaware of the other company’s product, how many potential customers are also in the dark? You need to reach those individuals before your competitors do. While this might not require a groundbreaking product, it will demand a creative and effective marketing approach.

Want to dive deeper into startup strategies? Check out this informative video!