RULE: At its heart, what you are doing must genuinely matter to your customers, and it must set you apart from your competitors.
Follow the rule or your startup is doomed.
The vast majority of successful businesses do not appear on the evening news or on the front page of TechCrunch. They quietly go about the commonplace tasks common to all enterprises. They present themselves to potential customers in some niche market, work to close sales, and attempt to deliver enough value to assure a long-term relationship.
Only very occasionally do we see a remarkable breakthrough or fad that sweeps a company to riches. Think Facebook, Twitter, and (perhaps) Foursquare. If that happened all the time, it wouldn't be news.
By the way, just in case you haven't heard, the users of Facebook, Twitter, and Foursquare are not really customers. Their actual customers are the ones buying information about those poor addicted users or paying for advertising space. The users are just raw material in a big information factory.
So, how can you make sure your start-up is both relevant and unique? Ask yourself these four simple questions. And make sure you have good answers.
- What significant underlying marketplace group/trend/opportunity will carry your new business to success in spite of itself?
- What compelling end-user need does your business address?
- What makes your product/service special?
- What differentiates you from competitors and substitutes?
Here are some reference readings to help you improve your chances. See Riding the Wave. Also Two Important Questions. Plus Common Wisdom. And Simple is Good.
Now, we all know that the success of a startup business isn't as simple as following only one rule. Entrepreneurs have to master a pretty long list of skills to do really well. But some rules apply with more force than others, particularly at the beginning. It's almost impossible to recover from a deeply flawed start.
So, remember, observe the simple RULE, or face certain doom.You can't say I didn't warn you.



Ryan,
Seth Godin says a lot of smart stuff, doesn't he? I'd like to be in his league!
Jim
Posted by: Jim Flowers | June 26, 2010 at 05:44 PM
Good advice! I would say that "Purple Cow" by Seth Godin illustrates this rule quite well.
Posted by: Ryan | June 25, 2010 at 10:09 AM