About once a year, I like going to one of these entrepreneurial conferences that seem to abound in Silicon Valley. Granted, by now they all have a similar 'look and feel' - panels and presentations with various VCs, entrepreneurs who've made it and a few top execs from companies with buzz. From bagels for breakfast to networking at lunch, the format is pretty standard. So why would I want to go?
I go because it's a boost to the entrepreneurial spirit. It's kind of like a believer going to a religious gathering - you hang out with fellow believers, listen to impassioned speakers preaching to the choir, and maybe trade stories of personal epiphanies. The cool thing is that everyone there is a believer - I haven't yet met a skeptic of entrepreneurship at one of these events. That said, I do try to pick the best of the bunch for me - the ones with the highest level of energy, not necessarily the most high-profile speakers.
So, I'm going to the Stanford GSB Entrepreneurship Conference tomorrow essentially to get a booster shot, and in my book it's worth my while to take a little time off to do so. I'm sure I'll pick up some interesting pointers here and there, but mostly I hope to get an entrepreneurial charge. We all need it every now and then.
Barrier to entry
Times have changed. It used to be that a startup had to show a 'significant barrier to entry' in terms of IP that is not easy to replicate due to technical complexity, deep domain competence and, often, the large number of person-months that went into building the product. Flaunting the barrier was pretty much de rigueur for funding conversations.
But things are very different for web apps now. Tools are readily available (experienced developers, not so much) and development is usually fast and cheap. A large number of companies that have consumer-oriented products don't always have unapproachable, deep technology that would daunt other developers. What they do have is the other requirement for success: eye-popping traction with legions of users. Many successful offerings (YouTube being a prime example) did not start off with a complex product but they hit pay dirt when their user base started expanding geometrically. And most importantly (for revenue planning), this large user base will only come to your site if your offering is free.
As I was explaining to a would-be entrepreneur today, it is no longer about the complexity of the code. It is more about filling a need, doing it well enough to attract a large number of users and being able to extrapolate that to many millions. But, there is the slight catch that usually all this has to be done with very little money - maybe that's why not everyone who's a coder (or knows one) is an entrepreneur. Now there's a barrier to entry.
But things are very different for web apps now. Tools are readily available (experienced developers, not so much) and development is usually fast and cheap. A large number of companies that have consumer-oriented products don't always have unapproachable, deep technology that would daunt other developers. What they do have is the other requirement for success: eye-popping traction with legions of users. Many successful offerings (YouTube being a prime example) did not start off with a complex product but they hit pay dirt when their user base started expanding geometrically. And most importantly (for revenue planning), this large user base will only come to your site if your offering is free.
As I was explaining to a would-be entrepreneur today, it is no longer about the complexity of the code. It is more about filling a need, doing it well enough to attract a large number of users and being able to extrapolate that to many millions. But, there is the slight catch that usually all this has to be done with very little money - maybe that's why not everyone who's a coder (or knows one) is an entrepreneur. Now there's a barrier to entry.
Framing it right
Every entrepreneur who's done any research has heard about being ready with the 'elevator pitch' - in the event you shared a ride on the elevator with VC who somehow would rather ask what you are doing then stare at the flashing floor numbers, you'd be all set. All cynicism aside, it is really a good thing to be able to articulate your vision as crisply as possible. And it is good for you, the entrepreneur, not just the person who's listening to you.
I have been crafting a one-liner for a while now, and have used it pretty successfully. But, notice the 'have been' - it's gone through a lot of changes and and the reason is that I have to keep tweaking the words to say what I want. It is not so much that the startup idea changes week to week (that would be scary) but that my view of what I want people to think about gets clearer. Any product idea, even one that can be described in one sentence with a few words, has a lot more to it than just the 'what'. There's the how, the who for, the when, where and most of all why - and of course, the all important differentiator that sets you apart from the pack. And unfortunately, the natural tendency is to try to put them all into that one sentence just so there's nothing left to the imagination (and potential confusion).
Think about it - 'a car that dynamically shifts from conventional gas-power to one continuously recharging batteries to greatly reduce fuel consumption while delivering necessary power' tells you a lot, but doesn't leave you with the impact of a 'gas/electric hybrid car that gives you 50 mpg'. So the elevator pitch is not all about giving the most information in the shortest time, but making the best impression in the shortest time.
It may not be feasible for all entrepreneurs to articulate their product vision clearly from a wordsmithing perspective, which is why they seek marketing partners. But however they do it, the result is immensely helpful not only in getting the point across, but also in retaining your product focus. The more minutiae you have in your product thumbnail, the more likely you (and your potential audience) are to get side-tracked by them. I think framing your product crisply is particularly important when you're a startup - you have a lot more leeway when you're much bigger and more established. In my opinion, Google was successful because they set out to provide the best search engine, period - if they'd started off wanting to provide a search engine, along with email, a map app, news aggregator etc. , wow, they'd have been like Excite and maybe they'd have met a similar fate?
I have been crafting a one-liner for a while now, and have used it pretty successfully. But, notice the 'have been' - it's gone through a lot of changes and and the reason is that I have to keep tweaking the words to say what I want. It is not so much that the startup idea changes week to week (that would be scary) but that my view of what I want people to think about gets clearer. Any product idea, even one that can be described in one sentence with a few words, has a lot more to it than just the 'what'. There's the how, the who for, the when, where and most of all why - and of course, the all important differentiator that sets you apart from the pack. And unfortunately, the natural tendency is to try to put them all into that one sentence just so there's nothing left to the imagination (and potential confusion).
Think about it - 'a car that dynamically shifts from conventional gas-power to one continuously recharging batteries to greatly reduce fuel consumption while delivering necessary power' tells you a lot, but doesn't leave you with the impact of a 'gas/electric hybrid car that gives you 50 mpg'. So the elevator pitch is not all about giving the most information in the shortest time, but making the best impression in the shortest time.
It may not be feasible for all entrepreneurs to articulate their product vision clearly from a wordsmithing perspective, which is why they seek marketing partners. But however they do it, the result is immensely helpful not only in getting the point across, but also in retaining your product focus. The more minutiae you have in your product thumbnail, the more likely you (and your potential audience) are to get side-tracked by them. I think framing your product crisply is particularly important when you're a startup - you have a lot more leeway when you're much bigger and more established. In my opinion, Google was successful because they set out to provide the best search engine, period - if they'd started off wanting to provide a search engine, along with email, a map app, news aggregator etc. , wow, they'd have been like Excite and maybe they'd have met a similar fate?
In perfect balance
I did both the superhero and supervillain tests, and, setting aside the small issue of gender, the results prove that the hero in me is perfectly matched with the villain. Great qualities for a startup, right? I love the fantasy world!
Your results:
You are Superman
| You are mild-mannered, good, strong and you love to help others.
|
Click here to take the "Which Superhero are you?" quiz...
Now for the villain -
Your results:
You are Lex Luthor
| A brilliant businessman on a quest for world domination and the self-proclaimed greatest criminal mind of our time!
|
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