Startup Systems

Simplicity is difficult because most of us are overcompensating for uncertainty. Adding something is easy. But removing something is hard, because it requires conviction. It’s easier to hedge against uncertainty, entertain multiple paths, and dilute your focus than to develop a strong opinion about what to exclude.

“Why didn’t they simply do the perfect thing on the first attempt?”

The short answer is: that’s not how this works. Things are not linear or clean. We can only asymptote towards perfection through trial and error.

the way that you execute ends up really mattering. That was the second learning. The third is just focus.

Customer math for a new business

How much does it cost to get a new customer?

How much do you make from every interaction with that customer?

How long does the customer stick around?

How many new customers will existing customers bring you over time?

It’s easy to be excited about what the company seems to do... to choose our path based on the public’s perception of the output. But once the company has more than one person in it, most of our day is about satisfying the customer, meeting supplier requirements and dancing with the tension of doing our jobs.

Often, we use the product we make as a... See more

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

So what is systems thinking? In his book The Fifth Discipline , Peter Senge gives a systems thinking definition as “A discipline for seeing wholes. It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static ‘snapshots.’ And systems thinking is a sensibility—for the subtle interconnectedness... See more

But here’s the key for an early-stage startup: "As we’re building our plans, we only focus on those first three months, that first chapter. So we break that down into monthly high-level goals, and that's what I hold the team accountable for,” he says. In other words, don’t try to get detailed for longer than a few weeks out. "At a startup, it’s... See more

First-principles thinking, or thinking from first principles, sounds a lot more complicated than it is. It’s simply a technique for approaching problems with a beginner’s mind. Instead of working within assumptions and what people around you “know” to be true, you do the hard work of figuring out what’s actually true and, thus, what’s truly... See more