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A startup's success hinges on three things:
- your ability to identify a good market
- your ability to create something they'll pay for
- your ability to attract those customers consistently
- your ability to identify a good market
- your ability to create something they'll pay for
- your ability to attract those customers consistently
1. Identify a good market
Really, this means "unsatiated demand."
People want a thing, or want to accomplish a task, or want to make their life better in some way... but they still haven't found what they're looking for.
They're unsatisfied with their current options.
Really, this means "unsatiated demand."
People want a thing, or want to accomplish a task, or want to make their life better in some way... but they still haven't found what they're looking for.
They're unsatisfied with their current options.
What does "unsatiated demand" look like?
@tuple: devs liked Screenhero, and then Slack killed it. The only other options were Zoom and Skype.
@tailwindcss: devs want to get better at design. Devs were "sick of overriding unwanted styles, and fighting with Bootstrap."
@tuple: devs liked Screenhero, and then Slack killed it. The only other options were Zoom and Skype. @tailwindcss: devs want to get better at design. Devs were "sick of overriding unwanted styles, and fighting with Bootstrap."
More examples of "unsatiated demand:"
@hostifi_net: Ubiquiti’s wifi platform is popular, but there was no good way for IT providers to manage installs.
high-quality webcam: there's still a huge opportunity for a 4k, high-bandwidth camera, that syncs with pro mics.
@hostifi_net: Ubiquiti’s wifi platform is popular, but there was no good way for IT providers to manage installs. high-quality webcam: there's still a huge opportunity for a 4k, high-bandwidth camera, that syncs with pro mics.
2. Create something they'll pay for
This is about building a compelling product.
Software needs to be fast, intuitive, responsive. You need features that are so good, people will switch to get them.
Your app should satiate your customers' desires. "More reliable, faster."
This is about building a compelling product.
Software needs to be fast, intuitive, responsive. You need features that are so good, people will switch to get them.
Your app should satiate your customers' desires. "More reliable, faster."
The customer's "desire + ability to pay" also encapsulates things like LTV, churn, CAC, etc.
If folks have the desire + ability to pay, they'll:
- keep paying for a long time
- pay prices that create margin
- be reasonably affordable to acquire + keep
If folks have the desire + ability to pay, they'll:
- keep paying for a long time
- pay prices that create margin
- be reasonably affordable to acquire + keep
Keep in mind, it's not just features that pull people to buy.
Sometimes people buy just because they like your brand more (even if your product is only marginally better).
Heinz Ketchup > No Name Ketchup
Branding can be a big moat.
Sometimes people buy just because they like your brand more (even if your product is only marginally better).
Heinz Ketchup > No Name KetchupBranding can be a big moat.
3. Attracts customers consistently
The market should move towards your product naturally. It shouldn't take too much pulling from you.
(If anything, you're just gently nudging folks toward your product)
The market should move towards your product naturally. It shouldn't take too much pulling from you.
(If anything, you're just gently nudging folks toward your product)
When deal-flow is slow or inconsistent it's really hard to build a business (especially in SaaS). https://twitter.com/smgrieser/status/1326999312480358400
Your product needs a consistent way that customers find you.
Referrals: "Have you heard about Shure's new MV7 mic? It sounds really good"
Search: "alternative to bootstrap css"
Reviews: "Wirecutter thinks this is the best humidifier you can buy"
Referrals: "Have you heard about Shure's new MV7 mic? It sounds really good" Search: "alternative to bootstrap css" Reviews: "Wirecutter thinks this is the best humidifier you can buy"
(Note that I didn't say "a consistent way for you to find customers.")
I believe customers should already be searching for a solution. There should be some form of existing momentum.
People want something; you're giving it to them.
I believe customers should already be searching for a solution. There should be some form of existing momentum.
People want something; you're giving it to them.
The vacuum salesperson goes door to door, desperately looking for customers.
But people seek out Dyson. Customers come to them. They're already in motion.
But people seek out Dyson. Customers come to them. They're already in motion.
