Rules for Entrepreneurs: Do One Thing Well

building

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.