Startups
7 Bulletproof Business Fundamentals Needed for Success
Have you ever seen those “top books to read for cs” lists? It’s frustrating to see 50+ books that you have to finish reading before moving on with your startup. They make you feel like, if you don’t read them a disaster will happen.
Although that is somewhat true. I have good news for you. You don’t have to read them all! I’m going to give you 7 of the most powerful tips needed for a great start. But, am I giving you everything you have to know? Of course NOT, and that’s where the bad news comes in…
You will have to read them eventually, but just to buy you some time I’ve summarized the important starting points from all the books I’ve read, so you can get a well-informed head start. I’m doing this so you can start now and stop with the “I have to learn” excuses. Sound good? Then, get a pen and paper because you’re going to be starting sooner than you think.
Here are the seven bulletproof business fundamentals needed for success:
1. It’s all a test
You won’t get everything right the first time. Many entrepreneurs think they’ve failed whenever their product doesn’t work out. It feels terrible… I know. You work for months on a product and then no one buys it. In fact, that’s why they tell you to launch as soon as you can.
So, you can get feedback and update your product fast. Listen to feedback carefully, modify the product and then launch again. Keep repeating this process until you get better and better. You’ll never stop enhancing it since nothing will ever be perfect. Remember that a startup is an experiment lab and there’s always something to improve.
You just have to improve one thing at a time. Oh yeah, one more thing… Don’t just accept feedback. Rather you should demand it and reward for it!
2. Give them the fish
Customers don’t want to learn how it’s done. Let me give you an example, imagine you enter a barbershop and the barber gives you scissors and teaches you how to cut your own hair. I’m guessing, you wouldn’t be happy at all. All you wanted was to get a quick haircut and then get out of there. Right? You don’t want to learn how to cut hair. You want your haircut. That’s why you should never teach your customers how to fish. Instead, sell the fish to them!
“It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.” – Steve Jobs
3. Target, Lock and engage
Be specific. Don’t try to do everything and don’t try to target everyone. If you think your product is too general then make it specific. I don’t care if you’re selling pizza or an online course.
Here’s an example, Would you rather be a bodybuilder’s pizza restaurant or just the next boring pizza restaurant? Obviously the first one because it stands out and it’s specific. Bodybuilders who love pizza will rush right through your doors because you told them that this place is for them, you focused on them and you welcomed them. Unlike the general pizza place that makes them feel like the next customer. When you specifically create something for someone they will feel special.
That’s not all. Have you ever considered how much it would cost to promote your products to everyone? Hint: A LOT! Selling to everyone isn’t logical either. I mean, you wouldn’t try to sell a car to a 10 year old or candy to a 70 year old, would you? Ok, you get the point.
4. Playing the monopoly game
If you really want to make it big in the business, you need to have an advantage. Not just a tiny advantage, but, a great one. You need to stand out and be different. Remember that bodybuilder’s pizza place I told you about? That stands out to bodybuilders like no other pizza place ever will.
Contrary to what you learnt at school, competition is actually a bad thing and you need to try your best to avoid it. Exactly like the bodybuilder’s pizza place did. They differentiated themselves from the competition and began operating in the bodybuilder’s pizza market. It is a pretty small niche market, but they now have a monopoly in it.
As long as no one starts competing with them early on and they scale fast, they’ll still be the dominant business in the market. So what’s so bad about competition?
The problem with competition is that it wastes people’s efforts and forces them to survive rather than innovate. Innovation is what keeps our economy moving forward. Look at all the huge companies out there that are taking lead in all the innovation, they all have some kind of monopoly.
For example, Facebook, Google and Microsoft. Each of those companies have a monopoly:
- According to Smartinsights, Facebook owns 80% of the social network market.
- According to Theeword, Google owns just over 88% of the search engine market.
- According to Time, Microsoft owns just over 90% of the computer operating systems market (not for smartphones).
Although no company owns 100%, they do own the majority share and that’s what makes them super successful. However, these companies did not start big. They took over a small market and then scaled up from there (just like the pizza place). Facebook became popular in Harvard College then other colleges and then the whole world. It didn’t take over the whole world over night. The same with Google and the rest of the world’s largest companies. That’s exactly what you should do too.
5. How much will you get paid exactly?
Your income is proportional to the value you provide. First, let’s define value. Value simply put is answering the following question: How can I help people more? That means the more you help people the more you’ll get paid in return. It’s as simple as that. Whenever you want to create a product, always ask yourself, how can I help my target customer even more? Just make sure it’s something they really need help with.
6. What’s in it for me?
Who cares about features! People want to know what’s in it for them. What benefit do they get out of it? What problem does it solve for them? There are two types of benefits, logical and emotional (also known as the head and the heart benefits). People simultaneously weigh whether something fits well, is affordable, addresses a need – head part – and whether it makes them happy, look good and loved – heart part.
Features fall into the logical part. As an entrepreneur you should figure out what emotional needs you can fulfill along with the logical ones. You’ll stand out when you do that since a lot of entrepreneurs only focus on logical features. Remember, the power of emotions!
7. Are they talking about you?
You’ve probably heard of “word of mouth” or referral marketing and it’s greatness. That’s true, every business needs some sort of “word of mouth” marketing especially in the start.
Want to know how NOT to get it? Be boring! People don’t talk about boring. Have you ever talked to someone about what you had for breakfast last week? No, you wouldn’t even care to remember it, let alone talk about it. But, you can guess it was probably the same old boring breakfast.
Want to know how to get people to talk about you? By surprising customers. That’s because people talk about surprising out of the ordinary experiences. It usually sounds a bit like this:
“You can’t believe what happened yesterday! I ordered a Latte from the XYZ café and oh man, the interior design is just out of this world, I’ve never seen anything like it. I even got a free blueberry muffin and it was the best muffin I’ve ever tasted. You should really go and check it out.”
It doesn’t have to be something too big and expensive. In fact, it shouldn’t. Something as little as a hand written thank you card or tiny gift will go a long way. Whatever you do make sure you’re not boring, otherwise everyone will forget about you.
“Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected.” – Steve Jobs
So there you have it. The 7 business fundamentals needed to run a successful business. Nevertheless, knowing them won’t help. You need to act! You can read all the books you want, but it won’t mean anything if you’re not taking action.
Write them on a notepad and refer to them whenever you’re making your business decisions. It’s not what you know, it’s what you do that counts. If you don’t act now, someone else reading this post will.