Hey, Don't Throw That Away!

Need a business idea? Identify a problem, then repeatedly try to solve it. That's how Divert's founders built a big business out of food waste. 

- LIZ BRODY

Here's what Ryan Begin knew: Food waste is a big problem-which meant, potentially, a big business opportunity. "Have you ever seen the back room of a grocery store?" he asks. "It's really scary the food we throw away."

The thing he didn't know? What kind of business actually solves this problem.

That turned out to be OK. Many entrepreneurs begin with a product or service, and then convince people to buy it. But many other smart founders take the opposite path: They start with a problem, then refine a solution until it clicks.

That's how Begin and his cofounder Nick Whitman built Divert, which has taken on many forms and tried many models, and now has more than 250 employees and serves 5,500 retail locations including Target, CVS, Albertsons, and Kroger. Here's what they did.

Step 1/ Find a customer.

Begin and Whitman had an idea: They'd build anaerobic digesters-machines that break down food and convert it into energy-that could be installed in back of grocery stores.