In: Tech Stories

When talking about startups, technology is the first thing that pops out in everyone’s mind. Therefore, tech startups have become a thing, like a trend. Not all tech startups win in the startup ecosystem. This is because many forget the fundamental purpose of technology and startups.

What is the core reason for the existence of computers and tech?

What do all successful startups do in common?

If you are a startup founder who is trying to grow your startup or trying to raise funds, then those are questions you should ask yourselves.

Great business SIMPLIFY !!! Uber simplifies how you order a taxi. Spotify simplifies how you access music libraries and listen to songs. Airbnb simplifies the way you find accommodation for your vacation. Apple simplifies mobile phones. Microsoft simplified how you use computers. MacDonald’s simplifies how a restaurant is run. IKEA simplifies the whole process of making, delivering, and selling furniture. Google simplifies how you search on the internet. We can keep going on how great success is achieved by finding a problem and simplifying it.

 One of the most crucial mistakes of startup founders is that they ignore the simplifying part and solely focused on the solution to the problems they are looking to solve. Solving a problem is good, you may stand a chance to get big by solving if you are the only player in the field. IBM was all doing great with their gigantic computers and you have to insert a floppy disk to use a program which means you have to switch to another floppy disk if you want to use another program. Compaq came in and make a portable PC where you can use multiple programs without needing to switch multiple floppy disks. Compaq solve the problem and became the big player in the portable PC niche. They soon got crushed by other entrants. They have a stake of cash, the team, and everything else, then why do they still lose? Because they stop simplifying.

Simplifying does not only apply to the core problem but also the business operation, simplifying can be applied to a supply chain of a business which can cut cost and increase customer retention. You can even simplify the way machinery in your business is manufactured which can drop the cost of the machine operation which will lead to a drop in the cost of production. One of the best examples is from a carpet factory in Shanghai. They wanted to install more efficient pumps for their machinery. Rather than tinkering with the existing design, its engineer went back to the first principles, looking at every element of the system and considering how it could be improved. He examined the pipes the machinery used. Conventional wisdom held that it was best to use thin pipes as these are cheaper to manufacture. The engineer knew, however, that it takes more energy to pump liquid around thin pipes. He then calculated that while fatter pipes might indeed be more expensive to purchase, the fact that they are also more efficient means they can be used in conjunction with smaller pumps, motors, and so on. Overall, there would actually be saving if he broke with convention. Next, he redesigned the layouts, keeping the pipes as straight as possible and placing other elements around them, so that bends that increase friction and therefore eat up energy could be kept to a minimum. The result: the horsepower required to operate the new pumps fell by 72 percent.

Look at how powerful simplifying is. Only businesses which simplify will eventually reach the top. “Simplify” is the word for you if you are in a business or startup. Simplicity can be adopted by nearly everyone, just like the engineer in the above example.

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