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Archive for April, 2012
An interesting TED talk by Susan Cain on the power of introverts: how introverts impact innovation and creativity.
Here are some key points she makes (see full transcript)
- When it comes to creativity and to leadership, we need introverts doing what they do best.
- A third to a half of the population are introverts.
- You need to understand what introversion is. It’s different from being shy.
- Shyness fear of social judgment.
- Introversion is how you respond to stimulation, including social stimulation.
- Extroverts crave large amounts of stimulation, introverts feel most alive and capable when they’re in quieter, more low-key environments.
- The key then to maximizing our talents is for us all to put ourselves in the zone of stimulation that is right for us.
- Solitude is a crucial ingredient to creativity.
- Much better for everybody to go off by themselves, generate their own ideas freed from the distortions of group dynamics, and then come together as a team to talk them through in a well-managed environment and take it from there.
- Stop the madness for constant group work. Let people come together and serendipitously have an exchange of ideas. It’s great for introverts and it’s great for extroverts. But we need much more privacy and much more freedom and much more autonomy at work.
- Go to the wilderness and have your own revelations. We could all stand to unplug and get inside our own heads a little more often.
So much marketing is “me too”, if you have read one press release or marketing material you have read them all. It is always a trick about how to reach your audience and stand out from the crowd by being different. In an age of low-cost email campaigns and social media, we are actually finding that direct mail is standing out and cutting through and reaching prospects. Mailing traditional newsletters, hand-written letters or simply sending out postcards are working. People like getting mail!
3 Reasons I Like Postcards
- Cost effective – $20 for 500 postcards
- Don’t have to open an envelope
- People will actually post them on their office wall!
Below are couple of our favorite postcards:
Don’t forget to add a QR code.
Focus on delighting early customers over accumulating followers. You need proof of deep value in a niche over small value dispersed over a large market.
Two excerpts, one from H. Rider Haggard and one from Venerable Bede, that use a sparrow in flight as a metaphor for the evanescence of a man’s life.
Some Good Friday thoughts by Michael Malone on success in Silicon Valley and the need to contemplate your life from time to time.
I remember once talking to my high-school physics teacher, who had been one of the leading teachers in our district for decades.
“Don’t you get tired teaching physics?” I asked him one day.
“I don’t teach physics,” he replied. “I teach students.”
The same wisdom applies to securing financing for startups: investors don’t fund technologies, they fund people. The corollary is that companies don’t bring technologies to market, they bring products to market.
Neil Kane in “Culture Clash: Scientists Vs. Entrepreneurs“
When we talk to prospects for our market creation and market exploration services we always want to know if they have “working technology.” This has a different meaning than a mainstream customer might infer. It means that the team can deliver results that would otherwise be unavailable to their prospects at a given price within a given timeframe.
Most bootstrapping firms start out by delivering a service, or at least wrapping their product in a thick protective blanket of consulting to protect their customers from any sharp unfinished edges. And if you have ever used a product too early you know that the jagged edges of tomorrow can scratch some pretty deep wounds that are slow to heal and may leave impressive scars on what was once a promising career.
This is why early customers look hard at the people in your startup: they know that the technology cannot be divorced from the team and that how you respond when your product is producing unsatisfactory results is the most important question they have to answer. Because, as Gerald Weinberg advises, “nothing new ever works ” and sooner or later you will have to respond.
This means that it’s critically important that you act from the beginning to build trust and demonstrate that you are reliable, by actually being trustworthy and reliable. That does not mean you have to be perfect or offer a perfect product. Just that you and your team make it better over time and promptly address any issues or defects.
See also “My Interview with Peggy Aycinena“
“We tell our disruptive teams to not do volume forecasts. Do not do a spreadsheet with volume forecasts on it, because it is unforecastable. You cannot really know. So why waste time doing bogus numbers that are unknowable. The finance department may ask for them, so spend five minutes, do something quickly, but the leadership should not focus on those numbers. They are wrong, you just don’t know in what direction. Instead we have teams focus on how deep is the customer problem that’s unserved and how good is our solution at solving it. If those two are strong, then we have a reasonable shot at a good business. If either of those is weak, then no matter what the spreadsheet says, no matter what the volume forecast says, there is not a business there.”
Peter Cohan‘s “Situation Slide” asks six questions to help a sales team prepare for a demo:
- Job Title & Industry: Name and role of each decision maker attending demo
- CBI (Critical Business Issue): What is the major problem he/she has?
- Reasons: Why is it a problem or what is the problem due to?
- Specific Capabilities: What capabilities are needed to address the problem?
- Delta: What is the value associated with making the change?
- Critical Date or Event: When does the change need to take place (and why)?
I have bolded CBI and Delta because these correspond to Scott Cook’s “how deep is the customer problem that’s unserved” and “how good is our solution at solving it.” These are the key questions for determining whether or not you have a niche. Actually they are key questions to answer to secure an early customer, but when the same problems and same delta or impact recurs across customers who will reference each other’s buy decisions you have found your niche.
It’s at that point you can worry about scale. But especially for bootstrappers, a solution that doesn’t scale can still generate not only cash flow but valuable learning about real problems so that you can meet a deep customer need in a distinctively useful way. As Cook points out in the video, you can worry too much about building a $100 million or a billion dollar business when making sure you are having an impact on a problem a customer cares about can secure you a $1M to 10M business that can lay the groundwork for a larger business. This why we put the “finding your niche stage” after “early customers” but before “scaling up” in our startup stages model.
If you want to learn how to give a “Great Demo” Peter Cohan’s next open enrollment workshop is May 23 in San Jose.
The term “beta customer” conflates three categories of people who are using your product in a way that’s not healthy for your long term business prospects if you are selling to business users, in particular early adopter or pragmatic enterprise users.
Quid Pro Quo
- Beta Tester: someone you pay to evaluate your software and provide written feedback and perhaps an oral debrief.
- Beta User: a friend, acquaintance, or friend of a friend doing you a favor using your product. You can ask for an oral debrief or a written feedback but remember that they are doing you a favor.
- Early Customer: someone who believes that your product will help to solve a problem or meet a need and who you believe has a reasonable prospect of deriving value from your product. If they are evaluating your software they may not have paid for it yet but the expectation is that they will pay if they achieve a satisfactory outcome in a given period of time that is mutually agreed to.
Testing Your Product:
- Beta Testers are anxious to test your product to the extent that you are paying them.
- Beta Users are willing to test your product to return a favor or barter for a future favor.
- Early Customers are anxious to see if your product will produce a better result than the existing alternatives that are available to them. They are not anxious to “test” your product. If you are wise you will ask them for data or otherwise attempt to verify that your software will meet their basic needs before you make it available to them.
- Beta Testers like to report bugs because it’s proof of their value and that they deserve to be paid.
- Beta Users like to report bugs because they are concerned about their impact on your business reputation and potential customers’ experience.
- Early Customers normally don’t like to report bugs and tend to restrict themselves to ones that they want fixed. As far as they are concerned the best outcome is that they can get the results they need with the software as is. If they are “documenting bugs’ they are having a service interaction that is unsatisfactory. More fundamentally, they are not pointing out “technology problems’ as much as business, relationship, and reputation problems.
None of this is to imply that you cannot launch experimental offerings for current customers or new categories of prospects, but it’s a part of managing your business in the same way that altering any other aspect of your engagement or service delivery process would need to be managed.
If you are selling to business you cannot adopt the same attitude that a Google or Twitter has in providing a free service to an audience that they plan to monetize: you want your product to be a better alternative than anything else they can afford at any point in time that they are using it. This does not mean that it has to be perfect, just better for the metrics and results that your customers value.
“Your brand is the promises that you keep.”