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Discover the startup ideas that could lead to failure - Learn why these ideas are so tempting and how to avoid them with Michael Seibel and Dalton Caldwell.
In this video, Y Combinator's Michael Seibel and Dalton Caldwell explain why startup founders should avoid 'tar pit ideas': tempting but ultimately ill-fated startup ideas that attract Founders to them. They discuss the common consumer ideas Founders tend to choose, and why they are difficult and rarely successful. Seibel and Caldwell emphasize that understanding the 'bar' of successful consumer products and the importance of timing are key to avoiding the tar pit and having a successful startup journey.
1. Tar Pit ideas are common among Founders and tend to lead to failure.
Every startup founder dreams of success, but the reality is, many will fail. This is why it is important for entrepreneurs to avoid the “tar pit” ideas that many others have tried before and failed. Tar pit ideas are consumer-oriented businesses that are often alluring because they seem like a wide-open space, but beneath the surface lies a deadly quicksand of failure. Michael Seibel and Dalton Caldwell, of Y Combinator, recently discussed this topic, outlining the common pitfalls Founders often fall into and how to avoid them.
One of the main problems with consumer ideas is that Founders often don’t understand the level of competition that exists. For example, Google was a consumer success story that had no marketing plan, no user acquisition, and no branding. Yet, despite this, it was able to achieve millions of daily active users and make half a billion dollars a day from its ads. This highlights how the consumer market is often crowded with well-established companies and how difficult it can be for a startup to break into it.
Timing can also be a major factor in consumer success. Founders must be aware of the current market conditions and trends to ensure their idea is both viable and timely. If the market is not ready for a certain idea, it is likely to fail.
Overall, Founders should be aware of the “tar pit” ideas that have caused the failure of many startups. It is important to understand the level of competition and the timing of the market in order to have the best chance of success. With the right knowledge and information, Founders can avoid these “tar pit” ideas and increase their chances of success.
This video is about avoiding the "tar pit" ideas for startups. Tar pits are like quicksand, they look tempting and can be very attractive, but they can lead to failure with your startup. Michael Seibel and Dalton Caldwell explain that the tar pits they talk about are ideas that many people try but don't succeed. These ideas are often consumer-based, meaning they are products marketed to people and not businesses. Founders tend to choose consumer ideas because they are familiar with them, but the bar is very high and timing is very important. If you don't understand the bar and don't understand the timing, it can lead to failure. The advice in this video is to not fall into the tar pits and to avoid these tempting startup ideas.
“It looks like you've come up with this amazing original idea and the death of everyone that attempted it is hard to see and all you see is like a freshwater pool you're like oh this is a wide open space but right below the surface” - Michael Seibel
“People often don't understand how high the bar is the consumer products that they use they don't realize how actually good they are and how many others existed and failed” - Michael Seibel
“They spent no money on user acquisition they needed to know branding they didn't no marketing” - Dalton Caldwell
"Startups that are trying to solve problems that don't exist or problems that are not real problems are not going to be successful." - Peter Thiel, Entrepreneur and Investor
"You really have to think hard about what is the best problem to solve, and that's going to be the biggest determinant of your success." - Eric Ries, Author of The Lean Startup
"The key to a successful startup is not to reinvent the world, it's to solve a problem that's affecting people in the real world." - Patrick Vlaskovits, Author of The Lean Entrepreneur
1. Startup and Entrepreneurship
1. Understand that consumer ideas, such as social networks, are alluring but can often be dangerous tar pits that many startups fall into. (Knowledge)
1. From this video I have learned that tar pit ideas are startup ideas that many founders fall into because they appear appealing, but are difficult to pivot away from.
Dalton Caldwell and Michael Seibel
Dalton Caldwell and Michael Seibel are the co-founders of Y Combinator, a seed accelerator and one of the most influential organizations in the startup world. Dalton was the CEO of App.net, a real-time social platform, and the founder of ixus, an online music service. Michael is the CEO of Y Combinator, the co-founder of Socialcam, an online video sharing company, and the co-founder of Justin.tv, a live video streaming service. Both Dalton and Michael have extensive experience in the startup world and know what works and what doesn't. They are experts in the startup space and are well-versed in the business of creating and managing successful startups. Dalton Caldwell and Michael Seibel
Q: What is the most important factor for a successful consumer business according to Michael Seibel?
A. Word of Mouth
Answer: D. Timing
Questions for Students:
Questions for Real-Life Examples and Scenarios:
startup ideas, tar pit ideas, consumer social network, Google Stanford University, Steve Jobs Mark Zuckerberg, consumer Founders, consumer startups, consumer successes, consumer business, consumer products, gig economy, hero worship, growth hacking, user acquisition, branding marketing
1. Tar pit ideas can be extremely alluring to Founders due to their appearance of being wide open spaces with no competition.
1. Focus on enterprise-level solutions: Since consumer ideas tend to be the most alluring, yet difficult to succeed in, many startups should consider pivoting to enterprise-level solutions instead. This could include developing products and services for larger businesses and organizations, as well as leveraging the power of artificial intelligence and machine learning to create tools capable of handling the mundane tasks that would otherwise take up human labor.
2. Offer unique value propositions: As the competition for consumer ideas increases, startups should focus on offering unique value propositions that set them apart from the competition. This could include offering exclusive content, special discounts and promotions, or utilizing innovative technologies such as blockchain to revolutionize the industry.
3. Utilize existing platforms: Rather than developing a product from scratch, startups should consider utilizing existing platforms to their advantage. This could include utilizing platforms such as Shopify, Amazon, and eBay to quickly launch their products and reach a larger audience.
Are you thinking of starting a business? Avoid common pitfalls like consumer-focused ideas and focus on what sets you apart from the competition. Timing is key, so research the market and use it to your advantage! #startup #business #timing #success 🤝 @Accredicity