Side hustles and businesses that become lucrative often do so by addressing unsolved problems or improving existing solutions. This concept may seem daunting, but according to self-made millionaire and RSE Ventures CEO Matt Higgins, the key is to study individuals who have successfully tackled similar challenges in the past. Higgins shared this insight at the CNBC Make It: Your Money virtual event, emphasizing that many groundbreaking businesses are built on unique insights that individuals possess.
One prime example of this approach is Airbnb CEO Brian Chesky, who inadvertently co-founded his company while brainstorming ways to cover rent in 2007. Chesky and his co-founder came up with the idea of renting out air mattresses to attendees of a design conference in San Francisco. This simple solution not only addressed their personal financial need but also provided travelers with a more affordable lodging option compared to traditional hotels. This innovative approach eventually led to the creation of Airbnb, a company that now boasts a market capitalization of $77.04 billion and has revolutionized the sharing economy.
The success stories of entrepreneurs like Chesky highlight the importance of identifying and solving everyday problems. Higgins advises aspiring business owners to pay attention to their surroundings and consider whether their solutions to common challenges could be replicated on a larger scale. This shift in perspective, from inventing new products to solving existing problems, can be a game-changer in the entrepreneurial world.
Chesky’s experience is not an isolated case; numerous successful companies have emerged from similar problem-solving approaches. Bumble CEO Whitney Wolfe Herd, for instance, launched her dating app with a unique feature where women initiate conversations with matches. This innovation stemmed from Wolfe Herd’s observation of outdated gender dynamics in the dating scene, prompting her to create a platform that empowered women to take the lead.
Even smaller businesses have thrived by addressing specific needs in the market. Hexclad, a cookware brand backed by Gordon Ramsay, was founded by two colleagues who believed they could design a better frying pan. Similarly, tech marketplace Whop was born out of a group of friends recognizing the shortcomings of existing software marketplaces and deciding to create a more reliable alternative.
The common thread among these success stories is the focus on problem-solving rather than product invention. By reframing their goals in terms of addressing real-world challenges, entrepreneurs can uncover unique opportunities for growth and innovation. As Chesky once remarked, the best ideas often arise from personal experiences and the quest to find solutions to everyday problems.
In a rapidly evolving business landscape, leaders like Mark Zuckerberg advocate for a proactive approach to entrepreneurship. Rather than starting with a company idea, Zuckerberg suggests focusing on driving social change or addressing pressing issues in society. This forward-thinking mindset can lead to the creation of impactful businesses that resonate with consumers and drive meaningful progress.
In conclusion, the key to building a successful side hustle or business lies in identifying and solving unsolved problems. By studying the experiences of entrepreneurs who have successfully navigated similar challenges, individuals can gain valuable insights and inspiration for their own ventures. Whether it’s addressing a personal need or recognizing a gap in the market, the path to success often begins with a commitment to problem-solving and innovation.
