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Currently I work at a startup that does some brilliant technical things with software security. Honestly, I would not have thought of the idea the founders came up with in a million years. The funny thing is that no matter how powerful or brilliant of an anti-hacking software product we create, we can’t prevent the physical theft of machines from datacenters with it. It is basically impossible for our software to jump out and club a thief on the head. This means that companies still need to hire security guards at sensitive datacenters to prevent the physical attacks of information thieves. I think what is interesting is that the idea behind a physical security firm doesn’t take a PhD to understand, but these security firms are just as vital as my company in preventing data theft.

So what I have realized is that many thriving businesses are actually based on fairly simple ideas. As long as there is a need for a service or product, there is money to be made. The problem with simple ideas is that they are easy to copy so there might be a lot of competition, but with enough research and great execution they can still be very successful.

When it comes to execution of a simple business idea, technical ingenuinity and techniques could propel the business quite a bit. For example, many steps in a retail business can be automated, and having a good online store gives the business a huge competitive advantage. Great internet marketing also helps many small businesses make their presence known in the entire world. These technological advances make simple ideas easier to implement and become profitable.

Another great advantage to simple ideas is that the business could be very easy to duplicate and having a few simple businesses that run off the same infrastructure is easier than working on a complex business idea with a high barrier of entry. So even though there may be more competition, as long as the amount of available business is huge there shouldn’t be any problems to making a simple business profitable.

I am looking into starting a business or two that can be easily automated and generates recurring income. I have a couple ideas, and they may seem silly, but I think as long as I follow through and execute them well they can be quite profitable. Ultimately, I will need to be selling something that people want, and it is my job to create a product that helps people at a great price point. We will see if anything pans out and I will definitely announce my progress as I get to it.

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cialis side effectson 06.03.08 at 6:42 am

I spent most of my software career working in computer security as well. One early project was a trusted secure system that we hoped to sell to the government and military. This was about 1986 or 1987, and there were some new rules that required government departments and agencies to buy trusted secure computers. In the end, though, we never sold a system.

It turned out that the government knew how to create a secure computer: Put the computer in a room with a door and put a marine with a gun outside the door.

Since, as you say, you need the guard anyway, our secure computers never seemed like the right choice, even though the rules required them. (Basically, all the departments and agencies got waivers to ignore the rules.)

cialis side effectson 06.03.08 at 8:54 am

Came here through hacker news. Quite an interestng post. I agree that need should drive the technology. Technology for technology’s sake does not make sense.

I completely agree that there are lots of everyday needs that can be turned into profitable businesses. best of luck!

Regards
Prateek Dayal
Co-Founder Muziboo.com

cialis side effectson 06.06.08 at 7:46 am

[...] The Baglady – A Profitable Business Doesn’t Have to Be Based on A Brilliant Technical Idea [...]

cialis side effectson 06.08.08 at 8:49 pm

I totally agree with your view that technology itself doesn’t sell. You’re bang on, on the simple idea theory. Most often companies fail to realize that it is those simple things (read solutions) that people need instead of complicated technical solutions to problems.

I too have a product idea in mind and I am thinking on how to build it so that it can become a powerful brand. I know replicating the product is easy, but as they say competition only helps make your product more better!

I look forward to you announcing your new business. All the best in your endeavors.

Cheers,
Austin

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