The Startups Market In 2020
The Startups Market In 2020
One of the earliest mistakes it’s so many at the Startups Market In 2020 they try to do everything. They try to satisfy every customer need and request in every market startups in 2020 where one can use their product. That is the biggest mistake to make. It is tempting to do everything, but you cannot. Learning early to say “No” is therefore very important in the early stage of a company. We are capable of doing that, but we are not going to do that because we are going to do this, and only this. It is really hard to learn to focus in the early stages of a company, especially if you have a product or technology that can be broadly applied to many different markets or customer segments. It is tough to say, “Sorry, we cannot take your order”, when companies call. You have to let certain opportunities go away, you cannot chase every business opportunity. It is a hard thing to focus when you still have very few customers, but it is really valuable. And you almost cannot focus too much.
There are two reasons why focus is so important:
- You have to focus the very tight resources that a startup has on one particular product and one set of customers. Otherwise you will get distracted and you will end up achieving nothing.
- You have to clarify to the market what it is that you are doing. It can help a small company a lot with the customers, if it can say: “We focus on this particular product and nothing else and that is why we are better than this big company.” You should put all your energy into something the company does uniquely well and build alliances to do the rest.
Focus and speed are really the most important advantages that small companies have in the competition with large companies:
The focus is laser focused. There are no distractions, everybody is a 100% focused on the specific market the company is going after, and if the market changes, or if the company learns by its own maturity that this is not exactly the right business they are going after, it takes a nanosecond to get the company refocused on a different direction. For a large company it might take them ages to get it completely refocused. In a startup you get together, 10 people in a management meeting, and 15 people in a company-wide meeting and within a day you are refocused on a different strategy. That is what makes startups successful.
In order to laser focus, it is critically important to keep in mind that the clearer you understood the customer needs, the clearer your objective and mission will be. And the clearer your objectives are, the clearer you will be able to set your priorities, the easier it will be for you to say “No” to nine out of ten things, because in a startup you have to say “No” to nine out of ten things. And as your team grows they in themselves will be able to say “No”. So they will stay focused more automatically the more clearly you have defined your mission.
If you are not saying “No” to nine out of ten things which come to your plate in a startup, you are doing something wrong. Because the broader your product is, the more ideas you will see. What people forget is that every idea has its own market dynamics. Although the product or technology could be used in multiple ways, to build a market around it and eventually a company around it, takes tremendous time and resources and the synergies break down very quickly. So it is really important that you take the product or technology, focus it to one market need, establish your credibility in there, establish your basic revenue model and then you can always go into other markets. But if you are not focused and have not built the first step of your company well, your basic market entry and market development strategy, you never can achieve the market leadership. Because to enter and to develop markets you need a very tight focus on one market. And many companies fail because they are unable to take a product or technology and focus it on a need or a market. Either companies can never do that and they fail because they run out of cash or they try everything for two or three months and then they are trying to go after two or three markets with limited resources. In the end they never develop any market and fail. You need to stay very focused in order to avoid distraction.
Probably the more fascinating your product or technology is, the more brutally you should focus on defining the market need you are going after because you can get more and more excited about the possibilities of your product. The more boring the product or technology, the more you are compelled to look at one market instead of ten.
Out of the alternatives which you can address with your product or technology, usually bet on the biggest market. The larger the market, the more forgiving the market is. It is more tolerant to errors. It gives you a better probability of building enough momentum. Always go after the biggest market you can think of. You only have to do this one market, but really well. But when you go after this biggest market, clearly within you must have a game plan of what is the first need, you are solving and then go to others.
The successful companies started out with an extreme focus. They figured out what they are good at, and ft is usually not very many different things, and they stick with those things and focus on them. You can branch to other products later when you have the resources and the people. But the lack of focus often creates “Living Dead”, companies that are too small to make it big, and too big to die. They do a little bit of everything. There are people who spun off one of the opportunities and rather founded another company than dilute the focus of the existing one. So important is focus.
Always remember that most companies die of indigestion, not starvation. They do not die of a lack of opportunities in the world, but they die because they try to tackle too much. The absence of focus even for an eye-blink can lead to disaster. Focus is very key. A fail of focus will kill the company.