Offering expert consulting means developing a specialization and focus that enable you to execute with distinction. The phrases “finding the niche for your product” and “product market fit” are essentially equivalent. A key definition of a market is that members reference each other’s buy decisions and therefore building up a set of references lowers your next prospect’s perception of the risks in your product or service (not just will it work or will you do what you say you can do but are you going to offer them significant value.
Many entrepreneurs who are naturally optimistic make a serious mistake in discouraging pessimistic thinking instead of putting it to good use. The clever utilization of constructive pessimism is one of the keys to success.
I am giving a talk on “Extracting Competitive Insights from Software Demos: Crafting and Refining Your Company’s Message Through the Analysis of a Competitor’s Demo” at the Silicon Valley Chapter of the Society for Competitive Intelligence (SCIP) Tue-May-24 at 6PM.
Texas Hold’Em offers some useful models for technology startups: pick the right table (competitors) and understand how your cards best combine with common cards (the status quo and adjacent possible)
Here are two explainer videos Verdafero has produced: the first is intended for REIT executives, the second for general managers of hotels. They condense key symptoms for a customer need or problem and the impact of Verdafero on the bottom line.
Excerpts with commentary on Bill Watterson’s 1990 Kenyon College address: “Some Thoughts on the Real World By One Who Glimpsed it and Fled.”
We are offering our “Getting More Customers” workshop 9:00am-1:30pm on Sat-Apr-23-16. Spend a morning working on your business with a mix of lecture, discussion with peer entrepreneurs, and reflection and writing. You will leave with a plan for getting the phone to ring and your inbox to fill with inquiries.
Scott Robertson had a great post up last month on how to make content marketing work: be relevant, be different, be real, be useful, and be consistent. Here are some excerpts along with additional thoughts and commentary.
Theodore Zeldin gave a series of six lectures on conversation that were collected in slim book called “Conversation: How Talk Can Change Our Lives.” I found it offered a number of insights on what is needed for a serious conversation. And since serious conversation is one of the primary tools for early market exploration and customer development; I have curated a list of nine excerpts I think entrepreneurs will find useful.
My interview with Gabriel Weinberg was originally published Sep-8-2010. He was doing research for what became his fantastic book Traction. We talked for the better part of an hour and a half and I can remember he kept returning in different ways to what was needed to close your first dozen enterprise customers.
Any innovation effort is a painful struggle punctuated by false starts and dead ends. Your efforts are met with lack of interest even when a basic invention is working and active resistance when it starts to replace the tried and true. Like any childbirth the trick is managing the pain long enough to deliver.
Trust is built over repeated interactions between people. If your business requires long term relationships then you have to make sure that investments in automation are not deployed in a way that undercut your ability to have real conversations. Unfortunately, some uses of email automation tools are pushing sales conversations into the “Uncanny Valley” because they strive to simulate–but miss–a genuine personalized touch.
Cultivating mindfulness requires you to maintain situational awareness and realize when your reflexes may trigger a reaction that is not as thoughtful as the situation requires.
Product-market fit is not a ratchet: competitive response, new entrants, changes in technology and customer preference require ongoing customer development. You will need to continue to do customer development–and customer discovery for that matter–even after you have a first prototype, an MVP, early customers, and an established niche. Markets and competitors don’t stand still, no product-market fit is permanent.
In “Our ‘For Impact’ Culture Code,” Possible Health outlined a number of operating principles and cultural values that are also very appropriate for bootstrappers.
Possible Health: Our “For Impact” Culture Code
I am a huge fan of Neil Perkin’s blog “Only Dead Fish” and his two newsletters: “Your Weekly Dead Fish” (archive) and “Fraggl.” I followed a link from his post on “Complexity and Simplicity” to a thought provoking presentation by Possible Health on “Our For Impact Culture Code.”
Here is my take on some key concepts from the deck (emphasis in original) that would benefit bootstrappers –as well as “non-profits.” I have added my observations in italic:
- “Non-profit” is a legal structure, not a way of doing things. And we don’t believe that we should define ourselves in the negative. Instead, we exist to create impact.
Observation: bootstrappers are often motivated by a desire to make an impact (in addition to a desire for autonomy) and have to focus on impact as a way to prove credibility and establish their firm as a viable alternative worthy of consideration.
- We treat efficiency as a moral must.
Observation: in the non-profit world this avoids the trap of excusing poor and/or inefficient execution because you are working on a “good cause.” For bootstrappers it’s second only to impact for viability.
- If building effective healthcare systems for the poor were easy, everyone would do it. We do this work precisely because it is labeled as “impossible” by many.
Observation: you can substitute “effective healthcare system” for whatever you own Big Hairy Audacious Goal (see “Building Companies to Last” by Jim Collins for more on this term). Bootstrappers have to work in riskier and more challenge environments because established firms are less willing to invest effort when markets with a clearer return are accessible.
- When your outcome is impact, time is a terrible thing to waste.
Observation: as I have outlined in the Chalk Talk on Technology Introduction, prospects use their estimate of your “time to impact” as the single best indicator of the amount of risk in your solution. Days to weeks beats months to quarters.
- When you’re working in the world’s most challenging environments under constant uncertainty, the way to maximize learning is to minimize the time to try things.
Observation: any environment with high uncertainty is challenging, running smaller experiments minimizes the cost of failure and speeds learning.
- It’s everyone’s job to turn time into resources and possibility for our patients.
Observation: all that bootstrappers have in the beginning is their time; if they cannot create an impact and a sense of possibility in prospects they won’t prosper.
Related Startup Culture posts:
- Four Excerpts from Valve’s Employee Handbook That Belong In Yours
- Yanis Varoufakis: “Valve is an Enlightened Oligarchy”
- Netflix Culture: Freedom and Responsibility by Reed Hastings
Update June-28-2014: Guillermo Marqueta-Silbert (@guillemarqueta) tweeted a comment to the effect that the exchange rate for entrepreneur hours to impact was a function of entrepreneurial skill. I think this is a great insight and suggests a more nuanced understanding that it’s not just trying anything but trying things that flow from a deep understanding of customer situation and needs, competitive landscape, relevant technology alternatives, and market evolution. In an OODA Loop formulation–Observe-Orient-Decide-Act–the key differentiator that expertise brings is a richer and faster Orientation to the situation.
Q: When I introduce the idea for my business a lot of my friends are quick to ask: “are you sure there is no one else doing this?” In today’s fast and disruptive business world, I think it is very hard to come up with a business idea that is 100% unique, and utilizes a completely new set of technology features. I constantly find myself arguing that it doesn’t matter if someone else also has the same startup or business idea, it’s how you go about executing your business idea that matters.
What are your thoughts on competitors and how put off should I be when I find out another company has a similar product and mission to my startup?
“Don’t take business advice from people with bad personal lives.”
Frank Chimero “Some Lessons I Learned in 2013“
One of the hallmarks for success in a business-to-business market is the ability to form personal relationships as well as professional business relationships. Both require building trust. I am always dismayed when I read advice that advocates bait and switch or other forms of con games that erode trust and make it difficult for any startup to build relationships.
The video from my “What is Lean–Lean Innovation 101” talk is up:
Here is the description for the talk
“Lean” provides a scientific approach for creating a product and developing new businesses. Teams can iteratively building products or services to meet the needs of early customers by adopting a combination of customer development, business-hypothesis-driven experimentation and iterative product releases. This talk covers:
- Why more and more companies are using Lean
- What is Lean, what it is not
- Key concepts
- Get Out Of Your BatCave
- Use an initial product (MVP) as a probe to explore the market
- When and how to pivot
- Rules of thumb for successful lean innovation