Do Something That Wasn't Possible Three Years Ago: Aaron Levie's Advice for Entrepreneurs

When you're thinking about starting a business, one of the most important lessons to keep in mind is this: do something that wasn’t possible three years ago. This advice from Aaron Levie, CEO of Box, highlights a critical factor in determining whether your business idea is not only innovative but also has the potential to scale.

Aaron Levie, CEO, Box

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The Power of Timing and Innovation

Think about it—if you're considering a business opportunity that could have been done five or ten years ago, chances are, it might be too late to make a significant impact. The market might already be saturated, or the idea might not be unique enough to capture people's attention. For example, starting a simple social networking site today might not stand a chance against giants like Facebook or Instagram, which have already established themselves in the market.

Levie emphasizes the importance of leveraging new technologies that make your solution possible. Take Box, for instance. In 2000, it wouldn’t have been feasible to build a cloud storage company like Box. The technology just wasn’t there. But by 2005, the landscape had changed—storage became cheaper, browsers got better, devices became more connected, and the internet became faster. These advancements made it possible for Box to scale up and become a significant player in the cloud storage industry.

The Role of Cultural Changes and Macro Trends

It’s not just technology that drives innovation; cultural changes play a big role too. Consider Facebook’s rise—what made it possible was a cultural shift toward wanting to share more information and stay connected with others. If Facebook had launched ten years earlier, it might not have taken off the way it did. The timing was perfect because the culture was ready for it.

Similarly, macro trends can influence the success of a business. For example, the global financial crisis led to a shift in consumer behavior, with people becoming more cost-conscious. This trend gave rise to companies like Groupon, where people could purchase things at a discount. Even though the concept of coupons isn’t new, Groupon capitalized on a macro trend—saving money—that was particularly relevant at the time.

Examples of Timing and Innovation

One recent example of timing and innovation is the rise of food delivery apps like Uber Eats and DoorDash. While food delivery services have been around for years, the combination of widespread smartphone adoption, better GPS technology, and changes in consumer behavior (like the desire for convenience and contactless delivery during the pandemic) made these apps wildly successful in recent years.

Another example is the explosion of remote work tools like Zoom and Slack. While video conferencing and team collaboration tools have existed for a while, the shift to remote work during the COVID-19 pandemic created a massive demand for these services, driving their adoption and growth.

Conclusion

In summary, if you're an entrepreneur looking to start a business, ask yourself if what you're trying to do was possible three years ago. If it wasn't, you're likely onto something exciting. Leverage new technologies, pay attention to cultural shifts, and keep an eye on macro trends to find opportunities that can scale. Timing, innovation, and the ability to do something new will set you apart and increase your chances of success.

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Source: Stanford eCorner "Aaron Levie: Five Solid Startup Lessons"