

Tempting Software Startup Categories - epi0Bauqu
http://onstartups.com/tabid/3339/bid/11978/The-10-Most-Tempting-Software-Startup-Categories.aspx?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+onstartups+%28OnStartups%29&utm_content=Google+Reader

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lunaru
Guilty. Invoicing and time tracking fall under category #1 along with project
management and bug tracking as one of those things that naturally come to mind
when thinking about a startup to work on.

In my case, I'm glad I started Ronin, despite the level of competition out
there. I really felt (and still do feel) that I had something unique to bring
to it. In my case, it was a certain workflow that I had experience with
coupled with strong UX/UI experience. And, I felt the current players in the
market were insufficent (for my tastes).

The real key here is to realize that in such a field, there is a large noise
to signal ratio. Unless you can rise above that, it will just be 1 major
player getting the lion's share of the users and the rest tripping over each
other. (In my field, for example, Freshbooks is still the major player.)

On the other hand, if you succeed to the point where you are a level above the
noise, you have a built in insolation layer that discourages overly simplistic
and naive attempts at entering the market.

If you think you can commit to bringing a noticeable, appreciable and
sufficient difference in quality, there's no fear in wading into a well-
established field. Almost everyday I get emails from users that have noticed
the difference in quality that we provide. However, if you're just there to
throw up a half-assed attempt or to be a player with no discernible quality
differences, I'd seriously reconsider.

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peteforde
I've come back to this list several times since I first saw it last week.
Doesn't it freak you guys out that you're mining for ideas within such a small
pie-slice of the human experience?

There are lots of things that can bring a startup down. In my experience most
founders are so close and in love with their precious idea that they only
pursue evidence and opinions that support their position. So even if there is
an opportunity to ask "is there a critical flaw that realistically should keep
me from even starting it" most geeks will find a way not to take it. That's
why Steve Blank's "customer development" reads as radical to many geeks but
it's beyond obvious to people who develop products in the real world.

Fact is, most startup concepts are doomed before the first line of code is
written; not because of poor execution, but because the ideas just aren't that
great — and they only ask people who love them "too much" to be objective for
their opinion. When I tell would-be clients that their idea is not going to be
a home run, that they should stop while they're ahead and take the time and
money the were about to throw away and take their family on a nice vacation...
some get angry, others thank me, and one fella bought a third of my company.

TL;DR version: if your idea is on this list, you're not trying hard enough.
Nobody needs your Basecamp clone, but everyone sits on chairs. Design a better
chair.

~~~
paulhart
Cloning an existing service is a sure way to fail.

Looking at how existing products service a market, finding their collective
blind spot, and then kicking its ass; maybe you'll be successful.

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ryanhuff
I have fallen into the trap of trying to come up with an idea that is
completely unique. Its tempting to look for new categories to attack, while
dismissing categories with entrenched players as the lack of competition looks
so appealing. In reality, unless you have some highly unique attribute to
bring to market, trying to create the new market can be highly problematic. If
it hasn't already been done, are your potential customers even looking for a
solution to a pain? Also, are you certain that if you found a new market, that
the lack of competitors isn't a sign that there really isn't a market?

Even though existing markets are full of competitors, the opportunities in
existing areas are much more plentiful. Instead of looking for the next big
thing, why not focus for a niche in an existing market, and grow it from
there? The competitive landscape is constantly changing, and new opportunities
are always being created as the market shifts like the tides. What it often
takes is just a new twist on an existing concept. If you attack an existing
market, all you really need is an opening through a target niche to gain a
foothold, and from there, iterate as fast as you can.

~~~
adriand
I think that there are many, many markets that have not been noticed by most
progressive developers and people who are interested in creating startups. (By
progressive developers I mean those who develop really polished, usable
software in the vein of web 2.0 - there is software for every conceivable
market already, but there are plenty of markets that are dominated by hard-to-
use, crappy software.)

I suspect these areas tend to be those that are not at all among the core
competencies or hobbies of software developers, for obvious reasons. For
example, I recall someone who started up a site devoted to exchanging knitting
patterns (or something similar) that enjoyed a lot of success.

Just think about how many markets for software you could find if you just
talked to __women __about what they want.

I bet there are tons of huge moneymakers lurking in fields that most software
developers think are silly - like people who love to ride horses, or love to
do crochet, or enjoy (or make a living from) any of a number of fields that
are far removed from the average software developer's mind. Right now, those
markets are dominated either by amateurs making crappy sites, or big
established players with no creative spark.

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wgj
This is actually a list of obvious and highly competitive categories. Perhaps
the most highly competitive categories.

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gamble
Most of these categories are niches that the average person has some
experience with and don't require specialized knowledge or connections to
create a successful product. Most programmers don't know enough about non-
programming fields to build a successful product, so they all tend to pile on
in the few niches they understand. There are probably a lot of business
opportunities out there for programmers who also have experience in non-
software fields.

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IgorPartola
I often get the sense that any idea I come up with, somebody with funding and
development resources has already done it. Is nothing new in the world?

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F_J_H
Yeah, great point. With so many bright minds out there, and the technology
knowledge threshold becoming so much lower, it seems that all bases have been
covered a few times.

But, there are many examples of companies that were not first, but who have
become dominant.

Reminds me of a story I heard of two economists walking down the street. They
spot a $100 bill lying on the ground, and one says to the other "Hey, a $100
bill. Should we grab it?" And the other says "Nah, it must be a fake. If it
was real, someone would have picked it up already."

*edit for clarity

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waivej
We should turn this into a startup/programmer decathalon. So far I've done 4
of these...to a kid with a hammer the whole world looks like a nail. Maybe I
should write the others for fun.

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waivej
I've heard of machine shop operators that built their own machines. "All you
need is a Bridgeport and a Lathe and can build the rest".

Also, I recently shopped for a year for a good time tracking/billing system. I
tried many products but non were a perfect fit. Then in desparation I built
one in a few days. It improved my skills and improved my code libraries.

(edit: I suppose it's different because I did a year of market research before
committing to build something.)

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n8agrin
The cup is either half empty or half full. You can look at this list as a list
of oversaturated markets or as a list of markets that have produced some great
innovation and probably will continue to do so in the future. Hell, take Mint
for example. They came after wesabe, fit squarely in the personal info space
and are considered successful by most (not based on their sale, just the
service). Looking at issue management: are Jira, lighthouse, trac, bugZilla,
etc the best we can do? I doubt it.

Fundamentally I think any idea you are passionate about is worth pursuing.
Nevermind the judgements of naysayers and lists of supposedly typical idea
space.

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SMrF
"I just find it curious that these specific themes tend to occur again and
again."

The markets for each of these categories is huge with plenty of room for
innovation in specialized niches. It makes sense to me to see plenty of
competition in each category.

That said, they do tend to line up pretty well with the demographic involved
in your typical internet startup:

Project Management/Bug Tracking = Developer

Discussion Forums = Gamer

Music/Events = Hipster

Dating and Match-Making = Single

And there you have your computer programmer with ironic t-shirt, no girlfriend
and a level 70 mage in WoW.

~~~
ryanelkins
Please, he should be lvl 80 if he's serious at all.

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snorkel
Personalized News Aggregation/Filtering: Having personally witnessed a few
flame outs in this category I can honestly say though this area has lots of
ideas and interest you will find very people willing to actually pay for
personalizing it at any price point. Move along. No revenue to see here.

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yxhuvud
Unless you are going for mass market and can find a payer that is not paying
for the service directly but rather for some kind of access to your customer.
Ads come to mind, but there are other ways as well.

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callmeed
since when does "over-saturated" == "tempting"? But I think I get the point
... none of these are tempting to me (except maybe a twist on a dating site)
but I suppose they are for some.

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sabat
It would be interesting to see a brainstormed list of the most _underserved_
categories. I remember that one of PG's essays has a list of things he thinks
could use some startup love, but I'd be really interested in what other people
think, too.

~~~
arethuza
How about financial consolidation and reporting? Having had a fair bit of
experience with "market leading" applications there is definitely a better
solution out there waiting to be built.

