How To Start a Startup the Right Way

“Fall in love with the problem, not the solution.” – Uri Levine

There’s a wrong way to start a startup.

And there’s a right way to start a startup.

Aron Meystedt, a founder and investor, walks through correct way vs. the incorrect way to start a startup.

And I think he did a great job of framing, comparing and contrasting the approaches.

He knows his stuff, because he has the pain of failed startups and losing lots of money.

So, when he shares his experience his hope is to help you avoid making the avoidable mistakes that he made.

I find what he shares to match my experience what I’ve seen at Microsoft, as a CEO whispers, and helping lots of businesses work through their ideas as head coach for Saty Nadella’s innovation team.

Video Overview of How To Start a Startup the Right Way

In this video, Aron Meystedt walks through the wrong way and the correct way to start a startup:

#1 Way Startups Fail: Nobody Wants What You’re Selling

The #1 reason startups fail is simple: they build something nobody wants.

Startups often get caught up in their ideas and forget to validate whether there’s real demand for their product.

Without solving a genuine problem for customers, even the best technology or design will fall flat.

The key to success is focusing on customer needs first, ensuring that what you’re selling aligns with what the market truly desires.

Demand Generation is Tough

This is a phrase I learned long ago from senior leaders at Microsoft:

“Demand generation is tough.”

It’s true.

Demand generation is tough because it requires convincing people that they have a problem they may not even realize exists.

It involves not only creating awareness but also educating potential customers, building trust, and eventually persuading them to take action—steps that can be time-consuming and resource-intensive.

On the other hand, solving problems people are already asking for is much easier because there’s already a recognized need.

When people are actively seeking solutions, your job shifts from convincing them they have a problem to showing them why your solution is the best fit.

Focusing on existing demand allows you to align your product with clear customer needs, reducing friction in the sales process and increasing the likelihood of success.

The Wrong Way to Start a Startup

Build it and they will buy it is not the right strategy.

This is the incorrect startup journey according to Aron and his experience:

1. Start with an idea
2. Build something
3. Launch it
4. Market it
5. Find out if people like it
6. Tweak product and marketing
7. Repeat the iteration
8. Endless loop of failure

The Right Way to Start a Startup

According to Aron, the right way to start a startup is:

1. Determine what the problem is for the customer
2. Find out your target market and ideal customer
3. Talk to them to determine their needs and pain points
4. Ask them open ended questions
5. Validate your product
6. Revisit the customers and determine if you are solving their problem
7. Iterate – modify your product to fit their exact problem

The Incorrect Startup Journey

Build it and they will buy it is not the right strategy.

This is the incorrect startup journey according to Aron and his experience:

1. Start with an idea
2. Build something
3. Launch it
4. Market it
5. Find out if people like it
6. Tweak product and marketing
7. Repeat the iteration
8. Endless loop of failure

Example Launching a Startup the Wrong Way

Aron shares an example of the Shoe Wallet.

Guys have wallets that are big and bulky.

Guys where shoes

So put the wallet in the shoe–problem solved!

The wrong way is you spent a bunch of time and money before you find out if anybody wants this at all.

Here is the wrong way to start your startup for your Shoe Wallet idea according to Aron:

1. Idea!  The Shoe Wallet
2. Spend money and go into debt.
3. Rent a storefront.
4. Increase marketing and advertising.
5. Finally, ask questions.  No one cares.
6. Try to convince people to buy your idea.

Walkthrough of the Wrong Way to Start a Startup

Aron walks through the wrong way to start your startup.

The wrong way to start your startup is:

1. You go find a factory
2. You make a sample, it takes a month.
3. You spend a little bit of money, it comes in.
4. You got it, you’re in love with it, this thing is amazing, you’re an entrepreneur now!
5. Then you call the factory, you tell them to give you 1,000 pairs.
6. You setup a store.
7. This is the one thing you’re going for, you’re all in.
8. It’s gonna be $50,000 dollars so you go get a loan.
9. The bank asks for a business plan, so a month later you draw up the business plan.
10. You fudge a bunch of numbers. you’re $50K in debt.
11. The bank gave you the money, you order the shoes.
12. The shoes come in, you’ve got a 1,000 pairs of shoes sitting around.  You take pictures.
13. This is Day 1.  This is going to change your life.
14. You need a storefront, so you go rent a storefront.
15. You get furniture, fixtures, a new utility bill, a cash register, all the stuff you need.
16. You hire somebody.
17. You are way in.
18. You have your grand opening.
19. Nobody shows up.  Nobody cares.
20. So you lean into marketing and advertising.
21. You start putting ads up, Facebook, the local newspaper, you sponsor local events.
22. People start coming in the door.  Nobody still cares.
23. You’re like “What’s the deal?  These shoes are awesome!”
24. You find out, nobody wants it.
25. You think maybe influencers need to help people care, so you spend money on influencer marketing.
26. You try to convince people that they want these shoes, with a built in wallet, because you’re in love with the idea.

Example of Launching the Startup the Right Way

Here is an example of starting your startup for your Shoe Wallet idea the right way, according to Aron:

1. Build a profile of your ideal customer.
2. Find them and start talking with them.
3. Ask open ended questions about their problems.
4. Are these major problems?
5. List a few ways to solve the problem.
6. Revisit customers with their solutions.
7. Listen to their feedback and interest.
8. Are they a motivated buyer?
9. Early signals of possible sales.

Walkthrough of the Right Way to Start a Startup

Aron walks through the right way to start your startup.

The right way to start your start up is:

1. You’ve got the idea, you love it.
2. Don’t spend a dime.
3. Build a profile of your ideal customer.
4. Segment a small group that you can easily reach.
5. Let’s say men between the ages of 30 and 45 in my local area.
6. They work hard and are always on the go.
7. I can find one of those to go talk to.
8. I can find 50 of them, but let’s just start with one.
9. Go find this one person.
10. Ask them open ended questions, about the problems they’re having.
11. Hey, what’s the biggest problem you experience as a busy, hard working guy on the go?
12. Is it a major nuisance?
13. Is it a minor annoyance?
14. I see you have a bulky wallet.
15. Is that thing a pain? Is it a major annoyance for you?
16. OK, Great. Now I have this information, I’m going to go back to the drawing board.
17. I’ve heard some problems.
18. I’m going to sketch out 3 to 5 different ways to solve the problem.
19. They said this wallet is annoying, they hate it.
20. So, I’m going to go back to them with a few ideas.
21. What if I modify your pants to fit your wallet better?
22. What if I built a super thin wallet out of carbon fiber?
23. What if I built a pair of sneakers with a wallet built right in?
24. Do they think any of these ideas are amazing?
25. Are they saying the carbon fiber thin wallet is a home run?
26. What about the sneaker idea? (you’re in love with it)
27. Now you’re getting real feedback from 30, 50, 100 people.
28. You know if this is going to be a success or not before you spend a dollar.
29. If they say that is the dumbest idea I ever heard, you might want to backup and pursuit one of the other options.
30. If they say, that’s an awesome idea, the sneaker wallet.
31. Do you have them right now? I would buy a pair.
32. It’s a great early signal.
33. You say hang on, let me go make them, or you start taking pre-orders.
34. You can do pre-orders if people are eager for you to solve and create a solution for them right now.
35. Are people saying they want to buy this right now?
36. That’s the path you need to go down.
37. If it’s not your original idea, that’s totally fine.
38. This is the correct way to do it.

10 Great Quotes on Starting Startups the Right Way

Here are 10 great quotes that relate to starting a startup the right way:

1. “Make something people want.” – Paul Graham
2. “The best way to predict the future is to create it.” – Peter Drucker
3. “Fall in love with the problem, not the solution.” – Uri Levine
4. “Ideas are easy. Implementation is hard.” – Guy Kawasaki
5. “Don’t worry about failure; you only have to be right once.” – Drew Houston
6. “The customer is the ultimate boss.” – Jack Ma
7. “Start small, nail it, and then make it bigger.” – Tony Fadell
8. “It’s not about ideas. It’s about making ideas happen.” – Scott Belsky
9. “Your most unhappy customers are your greatest source of learning.” – Bill Gates
10. “A startup is a company designed to grow fast.” – Paul Graham

Validate Ideas Early and Often

The right way to start a startup is by deeply understanding and solving a real problem that people care about.

It means focusing on customer needs, validating your ideas early, and ensuring there’s a demand for your solution before scaling.

The wrong way is to build a product in isolation, based on assumptions, without validating whether anyone actually wants it.

This path leads to wasted resources and often, failure.

Success comes from staying close to your customers, iterating based on feedback, and delivering value where it’s truly needed.

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