Google organizes the world’s information within websites with PageRank so that we read the best articles first.
Facebook generates social information a person has and organizes it to allow people to socialize online.
Uber generates and organizes information about a potential driver that can drive us to our destination.
Internet-of-things startups generate information that we couldn’t have before with sensors and cameras.
A startup has to solve a problem, of course. That is Why it should exist. How can it exist for a long time? Here is How.
The 2 rules of a useful and necessary startup:
- It generates useful information that people do not have previously. If people already know it without you, they probably don’t really need you. Think about Google, Facebook, Uber, and Airbnb for a moment. Generating useful information makes the startup useful.
- The useful information needs to be organized to reach its maximum potential. Think about Uber and Airbnb. Imagine they do not organize the information, do you dare to hop into a stranger’s car whom you only know the name of the driver? Do you dare to spend a night in a stranger’s house that you only know the phone number or address? This makes the startup necessary.
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