Startup Advice
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Startup Advice
The archives of human cleverness are filled with blunders. When read in a good mood, history is a blooper reel. But it should not be lost on us that history never repeats, and modern technology enables ever more leverage. The more technology you can harness to commit an idea, and the faster your idea can spread, the greater the magnitude of... See more
Simon Sarris • Long Distance Thinking
It’s never the right time, but right now is usually the best time.
3-2-1: On the importance of beauty, fixing silent complaints, and a simple rule to make life easier
Take, for example, the ambition to “make your venture-backed startup profitable”: to develop, market, and distribute a product or service that’s never existed before, in a form that’s valuable and accessible enough for large numbers of people to want to pay you for it, in sufficient quantity that your revenue consistently exceeds your costs.
If... See more
If... See more
Gena Gorlin • The Psychological Needs of the Extremely Ambitious
Someone else’s success isn’t your failure.
100 Simple Truths
There’s wisdom to not talking about our goals. See Derek Sivers TED Talk. It could make you feel closer to your achievement than you are. But a spoken goal, the big one you feel in your bones, the one you’re afraid to say out loud because to not achieve it would be crushing. That takes courage. We reward courage by rooting for you. Some people call... See more
Kyle Thiermann • How can people root for you?
I’m not one to build in public, but there’s utility in making sure it’s known how people can root for you.
On building “Flavored” startups
Enterprise software is (mostly) not flavor-based. Sure, there are enterprise fads like the metaverse, but generally speaking, large companies only sign contracts when it feels like there is an obvious commercial advantage to doing so.
Networks are (mostly) not flavor-based. If you’re using an app because of the content created by its other users, it’s not necessarily a guarantee for success, but at least if it fails it probably won’t be because it hit a flavor-based asymptote. For instance, BeReal leveraged a unique flavor of photo sharing to build a network, but people are still using it because they like the way it helps them stay in touch with their friends. If it were just a single-player utility, it would not have scaled in the same way. Another historical example is Instagram versus Hipstamatic. Both had a cool new flavor called “photo filters,” but one had a network and the other did not. Here’s a more recent example: the network is what sets Substack stands apart from its flavor-based competition.
Tech-enabled services are not flavor-based. If you act like a tech company but really do grocery delivery, banking, education, housing, healthcare, or any other real-world service, your competition is mostly not flavor-based because starting this type of business involves a lot of cost and complexity. (Also, some, like ride hailing and delivery, are networks.) The downside is that your cost structure is probably not as great as pure tech companies, but the upside is that you have less competition.
All of these types of products can involve some flavoring to help them get off the ground. The point is not that flavoring is bad. It’s good! But it has a very specific role. Flavor provides an initial product wedge. It’s helpful for standing out initially but doesn’t provide long-term differentiation or durable advantage.