The Light-Bulb Moment and
the Journey to Startup Success
By Shiv N Singh
Published July 29, 2024
Most startups begin with a sudden burst of inspiration. The founder sees a problem that appears to have no solution and thinks, “How can I fix this?” However, this isn’t the right question to start with, and it’s a major reason why 10% of startups fail within their first year, and another 70% don’t make it past their fifth year. In the end, only one in ten startups succeed.
I’ve seen this firsthand over the past 20 years, having been involved with over 20 startups that grew from ideas to IPOs. The most valuable insights come not from what made them successful, but from what almost caused them to fail.
Many first-time founders either under-invest, hastily putting something together based on instinct, or over-invest, launching a product that’s either too simple or overloaded with features. You might think the missing step is launching and learning from a Minimum Viable Product (MVP). But it’s not just about what’s viable; it’s about what’s valuable.
In this article, I’ll share what took me over two decades to learn. But first, let’s dive into the ultimate light-bulb moment.
Lessons from the Light Bulb
You might have learned in school that Thomas Edison invented the light bulb. However, Edison wasn’t the first. Inventors like Ebenezer Kinnersley, Humphry Davy, and Joseph Swan had already created various forms of incandescent lighting. By the time Edison focused on creating safe, sustainable, affordable, and odor-free lighting in the 1870s, several patents for incandescent bulbs already existed.
Edison understood that the true value wasn’t in the invention itself but in perfecting it. The New Yorker once noted, “Edison did not look for problems in need of solutions; he looked for solutions in need of modification.” The existing solutions were viable but not valuable—they weren’t practical, and the bulbs didn’t last long.
From his headquarters in Menlo Park, Edison and his team tested thousands of materials before discovering that carbon was the answer in 1879. A year later, they found that carbonized bamboo could burn for over 1,000 hours, giving birth to the incandescent bulb as we know it.
Edison’s real achievement was creating a Minimum Valuable Experience (MVE). He made something people desperately needed accessible, affordable, and durable. That’s the kind of light-bulb moment every startup should strive for.
A.C.T. First
Before you create your MVE, keep these two crucial points in mind:
- Your story is your strategy.
- How you express it can make the difference between “meh” and “MRR” (Monthly Recurring Revenue).
It’s essential to understand your audience, the language and messages that resonate with them, and the tactics that drive them to act. To do this efficiently, I developed a framework called A.C.T., which can save you from wasting time and money on ineffective marketing efforts.
The A.C.T. Framework
The A.C.T. framework consists of three main components:
– Audience
– Communication
– Touchpoints
Audience: Who Are You Speaking To?
Communication: What Are You Trying to Say?
Touchpoints: Where Should You Share Your Message?
This is about designing the touchpoints and triggers that move your audience to action. Use your website, social media, and email campaigns effectively. Sometimes, a simple sign-up list suffices; other times, more strategic approaches like private WhatsApp groups or detailed funnels and immersive stories are needed.
By focusing on what’s valuable rather than just what’s viable and understanding your audience, communication, and touchpoints, you can navigate the challenging journey from idea to successful startup. Remember, the real light-bulb moment lies in creating something truly valuable for your customers.