hiwteboard

Rules for Entrepreneurs: Release Early and Often

Last week, I wrote two articles outlining some philosophical ideas around entrepreneurship. This series of articles is all about giving away lessons I’ve learned throughout my five years as an entrepreneur in four different ventures.

When you’re in the product business, you have to continually improve on your product. As soon as you hit version 1, you’re heading for version 2. You create a roadmap and set milestones, which are just intermediary goals to help you get from inception to some point in the future.

The reality of roadmaps, however, are that they are susceptible to change based on market demands – or, as it’s sometimes called, “pivots”. You can have a great product idea that has a wonderful two year roadmap, but if customers don’t like it or demand other features that have never been thought of, then it would be wise to modify timelines and roadmaps.

Many successful products have been the product of a “release early and release often” mentality where the entrepreneur or product team did not wait to have a fully developed product, and instead, hurried to get something to market for the sake of collecting feedback and input and improving on the product.

Eric Ries in Lean Startup talks about principles of testing market validation by creating an iterative cycle of development where a product is released, tested in the market, feedback aggregated, assumptions tested against that feedback, and new innovation created as a result of those tests.

There are a number of rapid-cycle development philosophies including Agile, Scrum and others. These philosophies put a greater emphasis on involving customer feedback and direction over pre-determined plans where feedback is not collected until the development cycle is completed.

What happens if your assumptions were all wrong? Now you’ve got a product that no one wants to use!

The best way to avoid this problem is simply to release early, even before your product is near complete, and collect feedback along the way. Based on the feedback, you may need to modify your development trajectory but at least you’re able to do that before it’s too late and keep your product relevant to the consumer.

Next time, I’ll continue this series and talk a bit about business visualization to help you track your business and make effective decisions. If you’re not already subscribed to this blog, do so now. Also, follow me on Twitter where I’ll be talking about entrepreneurship, WordPress and a healthy dose of sports on the weekend.

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competition

Rules for Entrepreneurs: Compete and Collaborate

Photo by Roger Barker on Flickr.

Google and Apple are not only competitors… they are collaborators. Indeed, Apple and Google both offer top level smartphones – The iPhone from Apple and the assortment of Android devices by Google (Google not only has its own phones but is the main proprietor of the Android open source project).

In the same world, Samsung and Apple are rivals (and becoming even more rival-ous) with competing smartphones (Samsung runs Android) sparking ferocious lawsuits back and forth, but Samsung is also a major supplier of parts to Apple.

This segment of my continuing series on Rules of Entrepreneurship is all about knowing when and how to compete and when collaboration is a better option. They are not mutually exclusive. This is a natural segue from my last post where I suggest that entrepreneurs focus on doing one thing well.

Principle: Don’t Reinvent the Wheel

It frustrates me to watch startups (usually not very good ones) try to reinvent the wheel. A classic example of this was from back in 2007 when I was sitting in a Starbucks in Columbia, MD. We had a group of entrepreneurs who gathered there on a daily basis and cowork together.

One of the guys I was working with introduced me to a pair of African-American entrepreneurs and he wanted me to hear about what they were building. I sat down and listened to their pitch. They were building the “YouTube for the African-American community”.

Full stop.

What? Why? Why not use YouTube?

They were well into the process of building an entire video platform from the ground up, complete with their own video encoding technology, instead of leveraging what YouTube (and subsequently Google) already created.

The entrepreneurs real mission was creating a video-sharing community for African-Americans, not creating video technology for African-Americans to use. I told them that day that they should abandon attempts to build their own video service, and instead leverage YouTube (which is built and maintained by really smart people at Google) to build the community they really wanted to build.

Why re-invent the wheel? You distract yourself from your core goals.

Sidenote: I have never heard of or from those entrepreneurs since.

Collaborate

As an entrepreneur, part of the process is identifying your competition. We certainly have done that at WP Engine. Sometimes, it is to your benefit to team up with your competition to achieve a common goal. Remember, business is business and it’s not personal. Don’t let your desire to “win” get in the way of your ability to get ahead.

Also, remember the age-old saying, “A rising tide lifts all ships”. What is good for your competition is often good for the entire industry you’re in. Everyone wins.

Certainly that’s not always the case, but it certainly isn’t not always the case.

Compete

In my opinion, competition is a bottom-line issue and there are lots of ways to positively affect your bottom line. Usually, competition does not equate to a zero-sum game, an assumption that rookie entrepreneurs tend to make. (I did this a lot in 2006, 2007 while at b5media and trying to take pot shots at competing blog networks – years later, I find it all kind of silly).

When you do choose to take on direct competition, keep it narrow, precise and for a specific purpose. Don’t allow personal feelings to affect your business strategies and, in the process, keep the door open to cooperation with your competition in other areas.

Next week, I’ll continue this series and talk a bit about release cycles – which is always a fun debate. If you’re not already subscribed to this blog, do so now. Also, follow me on Twitter where I’ll be talking about entrepreneurship, WordPress and a healthy dose of sports on the weekend.

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building

Rules for Entrepreneurs: Do One Thing Well

Photo by bartb_pt on Flickr
I have been an entrepreneur for just shy of 5 years full-time. Before that, I was engaged in entrepreneurial “things” for the previous 6 years. 4 companies. I am not a perfect entrepreneur and some would argue I’m not even a successful entrepreneur since I haven’t had a successful exit yet.

However, the odds on favorite number that people in the startup community like to throw around is that 9 out of every 10 startups fails. So, as I see it, I still have 5 more failures and a win to look forward to (although I think my current startup, WP Engine, is a pretty damn good company that probably is a win).

I can say that in all of my years in this world, I’ve learned a number of things. Many of these things are through trial and error, success and failure, and good old A/B testing.

Today I’m beginning a series (revisiting an old theme from years ago when Steve Fisher wrote the “Venture Files” track on this blog – before I simplified to a single channel site that is updated far less often than it was then) providing some “rules”, as I see them.

As of now, I have six rules to share from my experiences. That may increase over time, but they are slotted and ready to go.

Focus Your Efforts

As an entrepreneur, the carrot on the stick is to provide the best damn {product} that {your target audience} has ever seen. I’ll focus on web tech startups since that’s what I know best, but the principle can cross easily into other industries as well.

Inevitably, being the best damn {product} that your {target audience} has ever seen, involves taking an already existing idea and improving on it. It’s always nice when you can do something new and innovative, but most companies aren’t and maybe shouldn’t be. It’s hard to do something completely new. One quick peruse through Angellist will show you scores of companies who are pitching their products as the {blank} for {blank}.

Examples:

  • Netflix for Digital Children’s Books
  • Twitter for images
  • Meetup for Professional Events
  • eBay for College Tutoring

While I go into manic twitching mode when I see pitches like this, I have to hand the entrepreneurs and startups credit in that they are able to clearly identify exactly what they are building and why it’s important. Sure, they have to leverage some other known entity to get their point across, but their idea is concise and communicable.

Don’t be Google

To leverage a known entity for the sake of this post, Google is a poster child for leveraging someone else idea in the entirely wrong way. Tell me what all of these products have in common:

  • Google+
  • Google Buzz
  • OpenSocial
  • Orkut

That’s right. Every single one of these products were attempts to be the entirety of something else – to take it to their biggest competition in the space. Google+ is a direct swipe at both Facebook and, to a lesser extent, Twitter. Google Buzz was a direct assault on Twitter. OpenSocial existed to provide a social networking framework and was a play to undermine Facebook. Orkut took a swipe at Friendster, both of which are essentially dead today.

In every one of these cases, Google decided to “go big or go home” and ended up going home. The most recent, Google+, is still trying to get some traction but everyone seems to be sitting back and saying, “I’ve got social network exhaustion” and don’t see the big value in Google+ over existing products that do the same thing.

The better approach, if you want to assault Facebook, is a limited, targeted, precision-strike on a single feature and knock it out of the park. Twitter already has the status update. Don’t go there. The concept of +1, is already being done by Facebook with the “Like”. In other ways, Tweetmeme has been doing the same thing by enabling users to share what they like (who’s really gonna share what they don’t like… even if they don’t literally “like” it because it may be controversial, it’s compelling enough for users to share… which is the essence of a “Like” or a “+1″?).

But perhaps Google could really target photo sharing and tagging. Picasa is already there. Make it challenge Facebook’s photo albums and tagging. No one has done social event planning very well. Even Twtvite and Eventbrite are just for event planning, but don’t do social very well.

You Have Finite Resources

As an entrepreneur, you have limited resources. The last thing you need to be doing is getting “squirrel eye” and being distracted by every cool feature you could make. Does it fit within your vision? Does it help extend the main reason for building the product? (A good example of this is Foursquare building an Explore Tab… it extends their business product vision).

Especially at the beginning, you don’t have a lot of resources. Don’t try to be everything to everyone. Stay targeted and laser-focused on doing one thing and one thing well. As your company grows, you can start exploring complementary features and products. You just can’t be everything all at once.

Next time, I’ll expound on this concept by talking about competition and collaboration. You’ll want to come back. If you’re not already subscribe to this blog, do so now. Also, follow me on Twitter where I’ll be talking about entrepreneurship, WordPress and a healthy dose of sports on the weekend.

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