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Starting a business has never been harder. Over the past 30 years, new business creation has declined ~50%.
But with new technology enabling entrepreneurship, we're now starting to see the reinvention of the American Dream!
Thread
https://www.bvp.com/atlas/roadmap-enabling-entrepreneurship
But with new technology enabling entrepreneurship, we're now starting to see the reinvention of the American Dream!
Thread
https://www.bvp.com/atlas/roadmap-enabling-entrepreneurship
Small businesses face many headwinds: cumbersome regulation, the biggest companies getting even bigger, and limited access to capital, to name a few.
But these obstacles are not insurmountable!
But these obstacles are not insurmountable!
A new wave of entrepreneurship is about to crest. The technologies and tools that support small businesses and solopreneurship will fuel economic growth and opportunity.
We created six laws that we consider for platforms that enable entrepreneurship:
We created six laws that we consider for platforms that enable entrepreneurship:
Law 1: Forget churn, focus on expansion
High customer churn is often inevitable. Don't fight it. Focus on expansion via pricing that supports ongoing revenue tied to customer success, like transaction fees.
Platforms that drive demand to customers can command higher tx fees.
High customer churn is often inevitable. Don't fight it. Focus on expansion via pricing that supports ongoing revenue tied to customer success, like transaction fees.
Platforms that drive demand to customers can command higher tx fees.
Law 2: Scale with your customers
Simplicity to key to capture the long tail, but build functionality to retain your most successful customers.
@Wix started as a simple website builder and over time, developed enterprise-grade features to move upmarket.
Simplicity to key to capture the long tail, but build functionality to retain your most successful customers.
@Wix started as a simple website builder and over time, developed enterprise-grade features to move upmarket.
Law 3: Side hustle to main hustle
The most successful sub-categories are those that start as âside hustlesâ but evolve into lucrative careers.
Goal: 10%+ customers generate the majority of their income on your platform
Example: some @SubstackInc writers now earn $1m+
The most successful sub-categories are those that start as âside hustlesâ but evolve into lucrative careers.
Goal: 10%+ customers generate the majority of their income on your platform
Example: some @SubstackInc writers now earn $1m+
Law 4: Narrow the funnel
Improve funnel conversion, ideally by 10%+ per year.
@ankurnagpal saw @teachable users stuck on content creation but invested in features to lower the barriers to launching a high quality course.
Funnel investments pay dividends
Improve funnel conversion, ideally by 10%+ per year.
@ankurnagpal saw @teachable users stuck on content creation but invested in features to lower the barriers to launching a high quality course.
Funnel investments pay dividends
Law 5: Arm the rebels
The best way to fight large incumbents is to provide the underdogs with tools to differentiate and cultivate direct customer relationships
@Shopify has proudly positioned itself as the Anti-Amazon.
The best way to fight large incumbents is to provide the underdogs with tools to differentiate and cultivate direct customer relationships
@Shopify has proudly positioned itself as the Anti-Amazon.
Law 6: Founder market fit
Founders with experience facing these challenges are often best positioned to solve them.
@jackconte founded @Patreon to better connect with + monetize his own band's fans.
@MelanieCanva started @canva because even designing a yearbook was difficult
Founders with experience facing these challenges are often best positioned to solve them.
@jackconte founded @Patreon to better connect with + monetize his own band's fans.
@MelanieCanva started @canva because even designing a yearbook was difficult
Law 7: don't be afraid to break the rules :)
But using these 6 criteria we @BessemerVP @SakibDadi @LindseyLi_ are looking to back:
(i) vertical platforms
(ii) engagement & monetization tools
(iii) G&A automation
But using these 6 criteria we @BessemerVP @SakibDadi @LindseyLi_ are looking to back:
(i) vertical platforms
(ii) engagement & monetization tools
(iii) G&A automation
With new tools to enable entrepreneurship, it wouldn't be surprising to see an order of magnitude more become self-employed in the years ahead.
