Why Nachos Aren't on the Menu

“In a world with scarce attention and many choices, taste sets a business apart. Knowing what to make is as important as the ability to make it.”

There are different paths to success in the building of a startup, and it’s important to choose the one that aligns with your goals and values. Do you want to build the biggest business possible, or do you want to build a business you’re proud of and want to continue working at?

It takes enormous discipline to NOT try to scale something that's working. But some things just don't scale -- and trying to do so can destroy the golden goose in the process. Many entrepreneurially minded people can't help themselves from trying.

Once you have something that feels like it has the potential to be a narrative that many people connect with, it’s probably better to amplify and extend that than it is to muddle the waters with a bunch of other stuff. As Nathan Barry, founder of ConvertKit, once told me: you want to build a skyscraper, rather than a strip mall.

All in all, real positional scarcity businesses take time to develop, especially loyalty businesses that are difficult to get off the ground before a retail or consumption environment is fully understood. But I’ll leave with this thought: as the mobile internet, e-commerce, and the transformation of retail continues onward, I think there’s an incre... See more