Month: December 2013

“The capitalist system is brutal; it takes no prisoners… ” – Rob Adams

“…and has no regard for how much energy you have invested in your business.”

Inventors often face this issue.  They spend years and much of their own fortune designing the perfect product and they spend thousands on patent costs, only to be frustrated when they can’t raise funding or find out how little they can get for licensing their idea.

That’s because all this activity does not equate to value in the business world, nor does it guarantee that customers will buy the product.  The thing that builds value is whether the invention solves a problem for a lot people at a price they are willing to pay.

Dr. Adams will tell you to spend the first 60 days and at least 10% of your budget interviewing customers to see if your idea addresses a real problem in a market.  That way, the money you spend on development and intellectual property isn;t wasted on a hobby.

Definitely read “If Yo Build It, Will They Come?” by Rob Adams

 

Blogging Gazelle is published daily by Shawn Carson

“Plans are only good intentions unless they immediately degenerate into hard work.” – Peter Drucker

I love the word “degenerate” and  I’am sure Dr. Drucker chose the word intentionally.

There is no value in any plan except that it translates to action.  The word “degenerate” emphasizes that the plan must transform and go away as soon as it materializes.

I’ve heard it put another way…   “Don’t just plan there,  DO SOMETHING!”

Strategic Planning and Business Modeling, although important and vital, are worth nothing in themselves.  As soon as you have a plan, test it in the market with your customers.  They will let you know if you are on the right track.

Blogging Gazelle is published daily by Shawn Carson

“There are only so many ways to skin a cat, and everyone in your competitive set is carrying the same set of knives.” – Jay Baer

Solving customer pain is vital and fundamental.

If you are in a highly competitive market, your competitors know this and they have their version of the solution.  If you’re first to market, it will be easy to copy your solution and expensive to defend it.

So the question is; “What sets you apart?”  This takes us into the realm of Customer Delight.  Being better includes the customer’s experience using your product and the relationship they form with your company.  It’s not all about features.

 

Blogging Gazelle is published daily by Shawn Carson

 

“Interviewing customers is not what most people get out of bed every morning dying to do…” – Rob Adams

“…but in the end, it’s the utlimate way to produce value in the market as it is a sign of an execution mentality.”

There’s a lot packed into this sentence.  Beyond the obvious message of the importance of talking to customers, and the fact that no one likes to do it, there is a more subtle message that is very important.

Investors are interested in traction as a validation of your business model.  But before you have 1,000 visitors to your web site a day, there is the time when you don’t have a product and you don’t have customers.  But as Rob Adams preaches, that is the optimal time to validate the market through customer interviews.

It takes discipline and effort; two things that are going to be of interest to investors.  If you can demonstrate from hundreds of customer interviews that you have a minimally viable product, you not only validate your business model but you show you have the discipline and execution mindset to get the job done.

This is an intangible that all stakeholders look for but there is not a standard slide in the deck for execution mentality.  It comes from evidence of how you conduct business, how you research your markets and how you validate your value proposition.

Read “If You Build It, Will They Come?” by Rob Adams

Blogging Gazelle is published daily by Shawn Carson

 

“If too many people believe [in your startup] out of the gate, you aren’t thinking big enough.” – Jason Jacobs, Founder and CEO of Runkeeper

Entrepreneurs create change.

Change is hard.  People will have to give up they way it has always been.  Some will have much to lose.

Another way to look at it is if you are not getting much negative feedback, you haven’t talked to enough people.

You need to find that pain point where people have a strong reaction to your narrative.  It helps define your market and it surely will refine your value proposition.  The word “refine” often means to purify through the application of heat.

 

Blogging Gazelle is published daily by Shawn Carson

 

“Hope is not a plan, Mr. Callan” – Hetty Lang from NCIS LA

“I hope so” is all to often the reply when the question is asked, “Do you think it will work?”

Hope is inspiring and keeps the light burning.  We need hope to get us through the dark hour.  But hope is not fundable in itself.

I was involved in a “take it or leave it” scenario and it was us who conveyed the ultimatum.  The strange thing was, we were surprised when the other side said, “Ok, leave!”  We were sure they would see it our way and we did not have a Plan B.  It cost us quite a bit of money and time.

For every big decision, every potential life changing scenario, you need to think through all the possible chess moves and consider what happens if things don’t go your way.  Definitely have Plan B ready.  Plan C and D should be in the wings; each just a phone call away.

“Can I bootstrap if funding falls through?’

“What if this key guy won’t agree to be an advisor?”

“What if this cracker jack programmer wants too much cash?’

Even in chess there are a limited number of potential moves and usually, three or four most obvious.  Always have a backup!

Blogging Gazelle is published daily by Shawn Carson