Month: January 2012

“First they ignore you, then they ridicule you, then they fight you, then you win.” – Ghandi

Never say you don’t have competition.  Your biggest competitor is your customer’s decision to do nothing.  That means your solution does not ease their pain at a price they are willing to pay.

Regardless, once you start getting traction, others will notice and join you in the market.  Having intellectual property and patents are a good thing but in the end you have to win in the market.  Potential competitors won’t spend any time on you until you show promise.  They may pass along false information as they seek to protect their customers from you.  Some will try to beat you in court.  Not because it’s legit but because they can and because it distracts you and costs you money you may not have.

The only viable strategy is to provide a solution to a big problem at a price people are willing to pay.

Then you win.

“Here’s the sound of me running-“pad pad pad…” Here’s me running in the rain-” squeege squeege squeege” – Shawn Carson

Running in the rain sucks! Running nine miles in the rain sucks for a really long time.  But it’s what you do if you’re training for a marathon.  You could hit the treadmill or you could just skip it for a day.  Or two or three.

Market research sucks!  Talking to 50 customers to understand their pain is not as fun as programming code or completing a prototype.  Finding a cheaper supplier takes time away from R&D.  You could put it off or just skip it.  After all, you know what customers want.  You’re going to tell them.

Runners run for the running.  Sometimes it rains and your feet get wet.  But logging that long run pays dividends in the end.    Entrepreneurs take care of the business.  Customers will tell you what they want if you ask them.  Listening to them will help you deliver the solution they are willing to pay for.

“After all is said and done, a lot more will be said than done.” – Unknown

Investors are not investing in your technology, although it’s the framework.  They don’t invest in your great presentation or your clever business model, although they open the door.  They don’t invest in your resume although it’s a solid validation.  And that glossy four color business plan?  It ends up in a file folder.

Investors invest in your ability to get things done.  To execute.  To accomplish milestones.  To get customers.  To generate cash.  The rest is just blah, blah, blah…

“It’s all risk. Always.” – Seth Godin

A friend spent 16 years with a company doing a great job at every task he was given.  His last job was to help offshore some of the engineering testing to a foreign office half a world away.  After that task was completed successfully, he went to work and was told he’d done such a great job, they would’t need him any more.  His reward was a reasonable severance and the chance to seek opportunities somewhere else.

The only difference between this man and an entrepreneur is this:  The entrepreneur knows his risk and confronts it.  Known risk can be managed.

It’s all risk.  Acknowledge it.  Have a plan.

Read “Tribes” by Seth Godin

“We’re not in the coffee business serving people; we’re in the people business serving coffee.” – Starbucks

If Drucker was right and the purpose of the business is to have a customer, then guess what?

It’s not about your technology, or your intellectual property, or your features.  It’s not about how many publications or degrees you have.

Every business should be in the people business delighting customers and solving their pain. The rest is just the channel that delivers value.

“Do more and more with less and less until you can do almost anything with almost nothing.” – Lee Martin

Live frugally so you can invest in your dream.  Treat your investor’s money like it’s yours.

Don’t buy the $2,000 office chair.  Get the cheap  one from the used office furniture store.  Stay at the Hampton Inn, not the Downtown Hilton.  Fly coach.  Focus on the things that add value like R&D and marketing.  Outsource the rest like payroll and accounting.

Cash is king.  If you run out of it, they turn the lights off.  Marketing is as important as R&D.  Save some cash for both.

If you need to raise $2 million what could you do with only $1 million? Or $500,000? Or $25,000?  The most expensive money you will raise is the first money.  Have a plan for every dollar.

“I wrote about 150 songs but I really only wrote 15 songs…10 different times.” – James Taylor

You can create the next cell phone, the next digital camera, the next digital music player, the next personal game controller, the next electronic book reader, or the next GPS for runners and cyclists…

… or you can create the iPhone.

Repurpose, reinvent, evolve, transition.  Find new markets, and new customers.  Use a span bridge design to make a lighter running shoe.  Use a military robot to make an automated vacuum cleaner.  Use a fermentation process to make rare earth metals.

Nah, that’s CRAZY talk…

“There is only one valid definition of business purpose: to create a customer” – Peter Drucker

Great science is great science.  But it’s not a business…

Great technology can change the world.  But it’s not a business…

Great ideas capture imagination.  But it’s not a business…

Great people can inspire others.  But it’s not a business…

Great organizations can do great things.  But it’s not a business…

…until there’s a customer.

“You don’t have to be great to get started. But you have to get started in order to be great” – Michael “Doc” McIntyre

Get started.  Now!

Don’t develop the perfect product. Get it in the hands of your customer as soon as possible and get feedback.

Start with the business model you have and iterate.  Let the market help you figure it out.

Greatness is a decision and a journey.  Not a birthright or destination.

Get Started!