Why Startup Founders Need Thinker-Doers for Their Teams
Startup founders need thinker-doers—individuals who can balance analysis, idea generation and implementation. These are the talented people who thrive in fast-paced, resource-limited environments. Hiring and nurturing thinker-doers will accelerate your progress and improve the odds of your startup succeeding.
Image created using DALL-E by OpenAI.
By way of introduction - I'm a hands-on, seasoned fractional COO (Feldspar, FreshAhead, Synervoz), sales coach (Microsoft), and mentor (Alumni Ventures, High Alpha). Over 20+ years, I have applied my growth and operations skills to help dozens of startups (IAN, Axiom, Spartan). I'm excited to share my ideas and thoughts here. I hope you find them useful on your startup path.
Introduction
Fellow IBMer Fred Brooks, a leader in software engineering and computer science, once said, "Thinkers are rare; doers are rarer; and thinker-doers are rarest." This idea isn't just relevant to building leading tech—it's useful for anyone trying to build an agile, proactive, fast-moving team, especially startup founders.
Key Takeaways
Thinker-doers balance strategy and execution.
Thinkers and doers have value, but over-reliance on either will create issues, especially at startups.
Hire thinker-doers by seeking real-world examples of execution.
Lead thinker-doers with clear goals and consistent feedback by providing them with plenty of autonomy.
Why Thinker-Doers Are Essential in Startups
Brooks introduced the concept of thinker-doers—individuals who can strategize and execute their strategies—in The Mythical Man-Month. Thinker-doers thrive in environments where they can analyze and assess information, design solutions and implement their ideas. This makes them not just valuable, but essential to the success of startups.
In startup world, resources are limited, and frequent decision-making and follow-up are required. Thinker-doers can develop ideas and bring them to life without relying on someone else to execute them. This self-sufficiency avoids failed handoffs and speeds up activity while tightly aligning vision with execution.
Startups that lean too heavily on either thinkers or doers face inevitable roadblocks. Thinkers can get lost in analysis or ideation, slowing progress without clear action steps. On the other hand, doers may focus solely on completing tasks, sometimes missing the bigger picture or long-term goals. Balancing these tendencies is where thinker-doers shine; they combine both mindsets to keep a startup moving forward with the practical application of a vision.
Overweighting the team with thinker-doers is particularly critical for post-Seed to Series A startups and bootstrapped firms looking to tap into the same growth curve as those startups. Too many thinkers will stall execution, while too many doers may result in committing too many resources to the wrong paths forward. Getting this right requires careful people recruitment and management.
The Role of Pure Thinkers or Doers
While thinker-doers are the ideal startup profile, thinkers and doers can still play roles in specific situations. Thinkers often excel in advisory roles, offering strategic input without taking responsibility for execution. They can be especially valuable as external advisors or mentors, for example. However, you need to test whether thinkers have past experience executing their ideas. Be wary of contributions from thinkers who share theories or pass on recommendations based on others' lived experiences or lacking any history at all. Evaluate all of their suggestions carefully and cautiously. Many people are happy to offer opinions, so I'd be concerned about having too many "idea" people kicking around, offering too many perhaps conflicting recommendations.
Read also: Defining our Terms: What is a Fractional Leader Anyway?
Doers' potential contributions are more limited at startups. Even for a simple or repetitive task, mindful execution matters. There aren’t going to be many, if any, workstreams or processes that work perfectly at a startup. If they operate smoothly, they will still be subject to change as the business evolves. For even the most routine work, I'd prefer doers who consider how their work contributes to the company's customer-driven purposes. So, they are doers who bring a reflective and thoughtful approach to their work.
Be on the lookout for this one doer, gotcha, from the person who comes up with a single option to a problem or opportunity and acts on it immediately without surfacing alternatives. Maybe they get lucky, but more often, we’ll find out it wasn't a great idea at all. Lack of reflection and option-building by doers can waste a lot of time, which is always in short supply for startups.
If you find that you've employed or engaged a thinker or a doer, determine as quickly as possible if this is an ingrained trait or a behavior subject to quick change. All human beings are capable of personal development and growth. But for some people, this can happen at a glacial rate. You don't have that kind of time. Suppose a challenging teammate can't adapt quickly. In that case, move that person toward the exit sooner rather than later. That's the most respectful way to handle the situation for all parties.
Read also: Overlooked Traits of Successful Startup CEOs
How to Spot a Thinker-Doer When Hiring
Identifying thinker-doers during the hiring process can be hard, but there are practical ways to spot them. Start by asking candidates to share specific examples of when they took an idea from conception through execution. Look for clear instances of both creative thinking and follow-through.
During interviews, present scenarios where a candidate must balance strategy and action. For example, ask them how they would handle a sudden pivot in company direction or how they'd prioritize competing goals in a resource-constrained environment. Do they gravitate toward doing a ton of analysis and hours of desk research? Or do they emphasize learning by doing? Look for a bias to action in their replies.
I'm not advocating for “firing” without “aiming,” by the way. I am promoting people developing informed hypotheses and testing them out in real-life experiments to get answers quickly that aren't mere guesswork.
Finally, ask for stories demonstrating real-world problem-solving and follow-up. In the case studies they share and prior work experience they describe, consider whether they naturally cover both angles. A candidate leaning heavily toward thinking or doing may struggle with speaking to the other aspect convincingly. A candidate's past success in managing uncertainty by identifying options and taking action steps to discover the best path will contribute mightily in a startup environment.
Read also: More Overlooked Traits of Successful Startup CEOs
How to Lead and Support Thinker-Doers
Once you've hired thinker-doers, be sure to support them. Regarding people's performance, I keep in mind an acronym from Dan Pink: AMP-R. I added the "R."
"M" stands for mastery.
"P" stands for purpose.
"R" stands for relationship.
"A" stands for autonomy.
Thinker-doers thrive when given autonomy, and they'll reach peak performance when this is combined with the other acronym qualities, all in alignment with company goals. They will flourish if you allow these teammates to be creative and proactive when you have set clear expectations for outcomes. Do not micromanage a thinker-doer. That is certain to backfire.
Thinker-doers appreciate ownership of their work and will benefit from timely feedback that helps them improve. You might also establish a regular check-in, emphasizing your teammate’s personal development and broader career goals. Coach and help them to reach high levels of performance. Don’t take autonomy to an extreme. Accountability is critical; thinker-doers perform best when trusted and held responsible for the outcomes they drive.
Read also: 50 Top Apps, SaaS Solutions, Services, and Sites for Startups
Spartan vs Tough Mudder
It is interesting to see how organizational cultures end up reflecting the styles of their team members. During my time at sports indusry innovator Spartan, the CEO, Joe DeSena, was known for his fast-paced, action-oriented style. He leaned heavily on a "fire-aim-ready" mentality, leading to rapid iteration and learning. In contrast, arch-rival Tough Mudder had a slow, deliberate approach—focusing on analysis and planning over doing.
While Tough Mudder’s impressive cohort of business school graduates and former management consultants developed top-notch PowerPoint decks, they were slow to test ideas in the real world, limiting their pace of learning. They didn't develop conviction around a path forward. They lacked a competitive strategy supporting a clear customer-driven purpose. In the end, Spartan acquired Tough Mudder, achieving Spartan’s objective of becoming the Iron Man of obstacle racing.
Conclusion
The “first product" of a startup must be the team. If a team implodes (which definitely happens), it's game over. Creating a startup team of thinker-doers will improve your odds of startup success. While thinker-doers are ideal for most situations, thinkers may bring value when used strategically and sparingly. Over-indexing on pure thinkers or doers or relying on smooth handoffs between the two types of people will be a costly approach.
Building a successful early-stage startup is about turning unknowns into knowns by taking action—mindfully and methodically testing ideas and learning from those actions. Thinker-doers are your best bet for developing great ideas and putting them into action.
By hiring and nurturing thinker-doers, founders can shorten the time it takes to find product-market fit and then scale up. Fostering an environment that encourages creativity, action, and accountability will help every one of these team members reach their fullest potential. Your smartly staffed, well-coached team will keep your startup in action, focused on its long-term vision, while staying agile to handle daily challenges.
I love to connect with other like-minded startup leaders. Read more about me here, and please reach out.
I wrote this blog post with the help of a personalized GPT from OpenAI that I customize and train.Navigating Startup Fundraising: Insights from an Experienced COO
If you're new to startup investing, or developing a fundraising plan and want to make sure you're not missing anything important, this blog post is for you. Read about essential startup fundraising strategies: crafting pitches, building investor relationships, exploring funding options, and more.
Listen to the podcast version of this blog post, an AI experiment.
Photo by Karolina Kaboompics from Pexels.
Welcome - I'm John Gauch, a consultant with extensive experience in business operations and growth. I specialize in helping startups implement strategies effectively in both areas. As a hands-on fractional COO, I work with founders and CEOs through each step of the process, tailoring solutions to fit your unique needs and objectives.
Fundraising is a pivotal moment in the startup journey, often determining the trajectory of its growth and success. In today's competitive landscape, securing the right investment at the right time can be the difference between scaling or stagnating. Strategic fundraising is not just about acquiring capital; it's about aligning your funding strategy with your long-term vision and ensuring you attract investors who share your values and can provide more than just financial support.
This guide will cover all the basics. I will share insights and strategies that have proven effective in navigating the startup fundraising landscape.
Understanding the Fundraising Landscape
Navigating fundraising can be daunting, especially for first-time founders. The first step is understanding the various types of funding available, each with advantages and challenges.
Angel Investing: Angel investors are typically high-net-worth individuals who provide early-stage funding in exchange for equity. They often bring valuable mentorship and connections.
Venture Capital: Venture capital (VC) firms invest sums in exchange for equity, often at later stages of development. They may provide extensive resources and support and come with high expectations for growth, and VCs may demand considerable control over the company.
Crowdfunding: Platforms like Kickstarter and Indiegogo allow startups to raise small amounts of money from a large number of people. This method can generate buzz and validate market demand but can be time-consuming to manage and may not provide substantial funds.
Initial Public Offerings (IPOs): Going public is a way to raise significant capital by selling shares to the public. This is an option for more mature companies with a proven track record. It provides a large influx of cash but comes with regulatory scrutiny and the pressure to meet quarterly earnings expectations.
Crafting a Fundraising Strategy
A well-crafted fundraising strategy is essential to attract the right investors and secure the necessary funds. Here are key components to consider:
Set Clear Goals: Define what you aim to achieve with the funds. Whether scaling operations, developing new product features, or expanding into new markets, having clear objectives will inform your strategy and appeal to investors.
Identify Potential Investors: Research and target investors who have a track record of investing in your industry and stage of development. Platforms like Crunchbase and AngelList can help identify potential investors.
Create a Timeline: Fundraising is a time-consuming process. Develop a timeline that includes preparing materials, pitching to investors, and closing. Starting early with networking conversations allows you to build relationships and refine your pitch.
Prepare Your Team: Ensure you have the resources you need and that your team is aligned with your fundraising goals and ready to support the process. This includes preparing critical financial and operational documents, anticipating potential investor questions, and determining how you will execute the investment transaction.
By setting goals, identifying the right investors, creating a detailed timeline, and preparing your team, you can develop a robust fundraising strategy that increases your chances of success.
Read also: Key Strategies for Business Growth: 10 Steps to Expand and Thrive
Developing a Compelling Pitch
Your pitch is your opportunity to convince investors of your startup's potential. A compelling pitch combines clear communication with a strong narrative highlighting your vision and value proposition.
Key Elements of a Pitch Deck:
Clearly articulate the problem your startup solves for people in a particular struggling situation, how your product or service addresses it, and how your solution compares to existing alternatives.
Provide data on the size and growth potential of your market
Explain how your startup makes money and your strategy for scaling.
Showcase any milestones, customer growth, or partnerships that show traction or validate the business.
Present your financial projections and funding requirements.
Highlight the expertise and experience of your team members.
Use storytelling to make your pitch more accessible and memorable. Investors are more likely to invest in a compelling narrative that resonates with them emotionally.
Rehearse your pitch multiple times until you can deliver it confidently and answer likely questions your audience may ask.
A well-structured pitch that clearly communicates your vision and potential can significantly increase your chances of securing funding. Don’t make the fundraising journey harder on yourself by shortchanging this step.
Read also: Estimating Product Market Opportunity
Building Investor Relationships
Building strong relationships with investors is critical to successful fundraising. I encourage you to invest in and nurture these relationships long before you need to raise funds. Networking is vital—attend industry events, join startup communities, and leverage platforms like LinkedIn to connect with potential investors. Building relationships through mutual connections can lead to warm introductions, which are more effective than cold outreach.
Ongoing communication is equally important. Keep potential investors updated on your progress with regular updates on milestones and achievements. Your updates will show that you are making progress and are committed. Transparency is crucial—be honest about your challenges and how you plan to overcome them. Investors appreciate honesty and are more likely to support a founder who is upfront about their business.
Value addition is another critical aspect. Look for investors who can provide more than just capital. Investors with industry expertise, a strong network, and a history of supporting startups can bring value to your business. By focusing on these aspects, you can build strong relationships that support your fundraising efforts.
Preparing for Due Diligence
Due diligence is a thorough examination of your business by potential investors. Being well-prepared can make this process smoother. Start with financial documentation; ensure all financial documents are up-to-date and accurate, including profit and loss statements, balance sheets, and cash flow statements. Legal compliance is also essential. Ensure you’ve protected your intellectual property and the cap table is in good order.
Operational data should be readily available. Be prepared to provide detailed information about your business operations, including customer acquisition costs, lifetime value of customers, and other key performance indicators. Investors will also want to understand your team dynamics and company culture, so be ready to discuss your team structure, roles, and any key hires you plan to make.
Anticipate common questions investors may ask during due diligence, such as questions about your market, competition, business model, and risk factors. One of the most interesting and challenging questions to answer is often, “Why now?” Why could your startup only exist today? By combining thorough preparation with clear communication, you can successfully answer this question and navigate the due diligence process, increasing your chances of securing the funding you seek.
Read also: What I Need to Know to Make Investor Referrals
Negotiating and Closing the Deal
Negotiating with investors is a critical step in the fundraising process. This phase determines the terms of the investment and sets the foundation for your future relationship with investors. It's important to approach negotiations with a clear understanding of your goals and limits.
Start by knowing your worth. Be prepared with solid data and a straightforward narrative about your startup's value and potential. Understanding key terms such as equity, valuation, and dilution is essential. Negotiations should aim for a fair balance between securing necessary funds and maintaining control over your company.
Effective negotiation also involves transparency and flexibility. Be open about your startup's needs and be willing to compromise where appropriate. However, ensure that any agreements align with your long-term vision. Once terms are agreed upon, ensure all details are documented beginning with a term sheet. This will help prevent future misunderstandings and lay the groundwork for a strong partnership.
Related also: 50 Top Apps, SaaS Solutions, Services, and Sites for Startups
Exploring Alternative Funding Options
While traditional funding methods like venture capital and angel investing are well-known, alternative funding options can also provide valuable resources for your startup. These include crowdfunding, grants, and accelerator programs.
Grants:
Provide funds that do not need to be repaid.
Attractive due to no equity dilution.
Often come with strict eligibility requirements and specific usage guidelines.
This would include government-sponsored research and development grants tied to technology innovation.
Accelerators and Incubators:
Offer funding, mentorship, and resources in exchange for equity.
Frequently beneficial for early-stage startups.
Provide support and networking opportunities that can accelerate growth.
I have been a mentor for MassChallenge and Techstars to mention just two programs.
Exploring these alternative funding sources can diversify your funding strategy and provide additional resources to fuel your startup's growth.
Legal Considerations in Fundraising
You will need to navigate the legal landscape when raising funds for your startup. Ensuring compliance with relevant laws and regulations protects your business and builds investor confidence.
Start by creating a solid legal structure for your business. This includes properly incorporating your company and establishing clear agreements among founders. Protect your intellectual property through patents, trademarks, and copyright, as well as confidentiality and IP assignment agreements.
Understand regulations governing the issuance of your equity or other securities to investors. Working with legal professionals specializing in startups can help you navigate these complexities and avoid potential pitfalls. Addressing these legal considerations early ensures a smooth fundraising process and builds a strong foundation for your startup's future.
Read also: How Startups Can Make the Best Use of Lawyers
Post-Investment Relationship Management
Securing investment is challenging, and it is just the beginning. Nobody has ever said that building a successful startup is easy. Managing relationships with your investors effectively is crucial for the continued success of your business.
Maintain Regular Communication
Provide updates on progress, challenges, and milestones.
Transparency builds trust and keeps investors engaged.
Leverage Investor Expertise
Utilize their industry knowledge and connections.
Seek their advice on strategic decisions and growth opportunities.
Manage Expectations
Ensure alignment on goals and timelines.
Regularly review the terms of the investment documents.
Effective post-investment management strengthens investor relationships and provides the support needed for long-term success.
Staying Focused on Long-Term Goals
Amidst the complexities of fundraising, staying focused on your long-term goals is crucial. Fundraising should align with your overall vision and strategy for the company.
Set Clear Milestones
Define achievable goals and regularly review progress.
Maintain momentum and alignment within the team.
Avoid Common Pitfalls
Don't overextend resources or lose sight of your core mission.
Balance short-term needs with long-term objectives.
Celebrate Achievements
Recognize and celebrate wins—even the “small” ones.
Learn from setbacks to improve future strategies.
Maintaining a long-term perspective ensures that fundraising activities support sustainable growth and move your startup closer to its objectives.
Importantly, too, as CEO or founder, you will likely be dedicating a significant amount of time to the fundraising effort. Ensure you have the right team backing you up to keep the business humming. No matter how important the fundraising effort may be, you can’t afford to neglect the business's short-term needs.
Conclusion: A Path to Successful Fundraising
Embarking on the fundraising journey is challenging and rewarding. By understanding funding options, crafting a well-defined strategy, and developing a compelling pitch, you set the foundation for attracting the right investors. Building strong relationships and preparing meticulously for due diligence ensures you are ready to engage with potential backers.
As you navigate the complexities of startup fundraising, remember that each step you take brings you closer to realizing your vision. With strategic planning, transparent communication, and a focus on short-term needs and long-term success, you can improve the odds of securing the investment you need. Use these insights to guide the effort.
If you’re a startup CEO, founder, or entrepreneur and want to chat about fundraising or what you are building, I’d love to connect. Learn about my services and please reach out.
A blogging experiment, this post was written with some help from AI.Essential Leadership Skills for 2024: What They Are and Why Every Leader Needs Them
Building a successful startup is one of the hardest challenges you can take on. Read about and develop essential leadership skills for 2024 and beyond, including self-awareness, strategic thinking, and adaptability, to improve your odds of succeeding.
Listen to the podcast version of this blog post, an AI experiment.
In case you’re new here - I'm John Gauch – a seasoned fractional COO, sales coach and mentor. Over 20+ years, I have applied my growth and operations skills to help dozens of startups, building one high-impact venture to nearly $100M in revenue and a second to exceed that benchmark. I began my career as a tech lawyer in New York City and developed my expertise in progressive roles in business development, finance, sales, marketing and product, working along the way with companies like Amazon, IBM and Microsoft.
As we navigate the complexities of today’s volatile and uncertain economic environment, the role of a leader has never been more critical. In an era defined by rapid technological advancements, global interconnectedness, and unprecedented challenges, the skills that made leaders successful in the past are evolving. Let’s explore the essential leadership skills you need to thrive in this dynamic environment. Whether you're looking to enhance or develop new abilities, this guide will provide you with the insights necessary to lead effectively in 2024 and beyond.
The Core Leadership Skills for 2024
Self-Awareness
Self-awareness is the cornerstone of effective leadership. In 2024, leaders must deeply understand their strengths, weaknesses, emotions, and motivations. This awareness allows for authentic leadership, fostering trust and respect among team members. Regularly reflecting on your actions and seeking feedback can enhance your self-awareness. Developing this skill not only improves your decision-making abilities but also helps you build stronger relationships with your team, leading to a more cohesive and productive work environment.
Vision and Strategic Thinking
Having a clear vision and strategic thinking is essential in an ever-changing business landscape. Visionary leaders inspire their teams by articulating a compelling future and setting strategic goals to achieve it. This skill involves anticipating market trends, understanding competitive dynamics, and aligning your organization's resources accordingly. Strategic thinking requires a balance of analytical skills and creativity, enabling you to navigate complexities and seize opportunities. By cultivating a strong vision and strategic mindset, you can steer your organization towards long-term success.
Communication
Effective communication is a fundamental leadership skill that applies to all aspects of management. As a leader in 2024, you must be adept at conveying your ideas clearly and persuasively, whether in person, through digital channels, or in writing. Active listening is equally important, as it helps you understand the perspectives and concerns of your team. By fostering open and transparent communication, you can build a culture of trust and collaboration. Strong communication skills also enable you to resolve conflicts, motivate your team, and drive organizational change.
Read also: Overlooked Traits of Successful Startup CEOs
Adaptability and Agility
In today's fast-paced world, adaptability and agility are critical for leadership success. Leaders must be able to pivot quickly in response to changing circumstances, whether it's a market shift, technological advancement, or internal organizational change. This skill involves being open to new ideas, embracing uncertainty, and continuously learning. By fostering a culture of agility, you can ensure your organization remains resilient and competitive. Adaptable leaders are not only better equipped to handle challenges but will also capitalize on emerging opportunities.
Empathy and Compassion
People of all kinds have increasingly recognized empathy and compassion as vital leadership traits. In 2024, leaders must prioritize understanding and addressing the needs and emotions of their team members. Empathetic leaders build stronger connections and foster a supportive work environment, leading to higher employee satisfaction and retention. Compassionate leadership involves showing genuine concern for your team's well-being and providing support during difficult times. Integrating empathy and compassion into your leadership style can create a more inclusive and motivated workforce.
Integrity and Ethics
Integrity and ethics are the bedrock of leadership. Leaders must uphold the highest ethical standards in an era where corporate transparency and social responsibility are paramount. This means being honest, fair, and consistent in actions and decisions. Ethical leaders inspire trust and loyalty, both within their organization and with external stakeholders. By prioritizing integrity, you can build a strong reputation and create a positive organizational culture that promotes ethical behavior at all levels.
Collaboration and Team Building
Effective collaboration and team building are essential for achieving organizational goals. Leaders in 2024 must be skilled at fostering a collaborative environment where diverse perspectives are valued, and teamwork is encouraged. This involves creating opportunities for team members to work together, facilitating open communication, and resolving conflicts constructively. Strong team-building skills help you harness the collective strengths of your team, leading to increased innovation, efficiency, and higher overall performance.
Innovation and Creativity
Innovation and creativity are critical drivers of business success in today's competitive landscape. Leaders must cultivate a climate where new ideas are encouraged and experimentation is valued. This involves challenging the status quo, supporting creative thinking, and providing the resources needed for innovation to flourish. By fostering a culture of innovation, you can drive continuous improvement and stay ahead of industry trends. Creative leadership will enhance your organization's adaptability and inspire your team to think boldly and achieve extraordinary results.
Read also: How to Become a Thought Leader in Your Industry
Why These Skills are Crucial
Understanding the importance of these leadership skills is essential for several reasons. First, they directly impact your effectiveness as a leader. Self-aware leaders, for example, can more accurately assess situations and make better decisions. Vision and strategic thinking ensure that your organization stays on the right path, even amid uncertainties. Effective communication fosters a transparent and collaborative work environment, crucial for maintaining team morale and productivity.
Statistics and studies underscore the importance of these skills (research on empathy, for instance). Certainly, organizations that prioritize innovation will see higher growth rates. By developing and honing these skills, leaders can drive their organizations toward greater success and stability. The ability to adapt quickly to changing circumstances is not just a competitive advantage but a necessity in today's fast-paced world.
Do some leaders achieve economic success without doing this? Do you have to build a company that’s a fantastic place to work to reach a big exit or secure another financial reward? Candidly, you do not, but why wouldn’t any thoughtful human being want to, especially if it might improve the challenging odds of building a successful startup?
Developing Leadership Skills
Developing these essential leadership skills requires a proactive approach. Start with self-assessment tools and definitely seek feedback from peers and mentors to identify areas for improvement. Consider enrolling in leadership development programs or workshops that focus on building specific skills such as strategic thinking, communication, and adaptability. Consider working with a development-focused executive coach. Make a point to include practical exercises and real-world scenarios in your learning experiences. Continuous learning is key.
Read books, attend seminars, and stay updated with the latest research. Be humble. Engage with a community of leaders through networking events or online forums to exchange ideas and experiences. Many private groups serve founders, and Operators Guild is a phenomenal group for top startup operators.
Remember, leadership development is a process. By committing to continuous improvement, you can ensure that you’re becoming a more effective and inspiring leader, capable of guiding your team through the challenges and opportunities of 2024 … and beyond.
Read also: More Overlooked Traits of Successful Startup CEOs
The demands on leaders are evolving. Embracing self-awareness, vision, communication, adaptability, empathy, integrity, collaboration, and innovation will make you a more effective leader and improve the odds of your organization reaching new heights.
Developing as a leader is a journey, and continuous learning is key. Nobody needs to do this alone, nor can you. If you’re a startup CEO, founder or entrepreneur, and you want to chat about your leadership goals and whether I can be helpful in some way, I’d love to connect. Please reach out.
A blogging experiment, this post was written with some help from AI.Key Strategies for Business Growth: 10 Steps to Expand and Thrive
This month I discuss effective strategies for business growth, with special emphasis on startups. I cover topics from market penetration to digital transformation. The content will help CEOs and founders develop their own plans to expand and thrive.
Listen to the podcast version of this blog post, an AI experiment.
Photo by Lukas from Pexels.
In case you’re new to the site - I'm John Gauch, a consultant with extensive experience in business operations and growth. I specialize in helping startups implement strategies effectively in both areas. As a hands-on fractional COO, I work with founders and CEOs through each step of the process, tailoring solutions to fit your unique needs and objectives.
Are you looking to elevate your business to the next level? Whether you're a startup aiming to scale quickly or an established company seeking new avenues for expansion, understanding the right growth strategies is crucial. In this comprehensive guide, I will discuss 10 essential steps that can help your business. These strategies have been curated to provide actionable insights and proven methods to drive growth.
1. Market Penetration
Market penetration involves increasing your company's share of existing markets with your product or service offerings. This strategy focuses on capturing a larger portion of the market by attracting customers from your competitors, attracting people who aren’t doing anything but have a problem to solve, or convincing current customers to use more of your product.
To effectively penetrate the market, businesses employ various tactics, such as competitive pricing, enhancing their products, and marketing campaigns.
Early on, at the beginning of your startup journey, you will improve the odds of capturing a market by building a product or service that addresses an unmet or under-met customer problem. Look for people who are struggling with current solutions or frustrated with their options and doing nothing. Design and build a product or service that is better at helping people to make the progress they desire.
Later on, offering promotions, discounts, and loyalty programs are options you can look at to incentivize customers to choose your product over others. Additionally, increasing your advertising efforts to raise product or brand awareness may positively impact your market share. It's crucial to continuously analyze market trends and customer feedback to adapt and refine your specific strategies, ensuring they meet the evolving needs of your target audience.
Read also: Estimating Product Market Opportunity
2. Market Development
Market development is the strategy of entering new markets with your existing product. This approach is for businesses looking to expand their reach and tap into new customer segments. Market development can involve geographical expansion, targeting different demographic groups, or exploring new distribution channels. Startups, creating new to the world products, are by definition entering a new market.
For geographical expansion, companies might consider establishing new sales capabilities in different regions or countries, depending on the demand and cultural fit of their products. Another approach is to identify and target new customer segments that may benefit from your product but have not been previously marketed to. Utilizing online sales platforms can also aid in reaching a broader audience without the need for physical presence. Whether you are a startup or an incumbent company promoting an existing product, market development requires thorough market research to understand the new target market's preferences and potential barriers to entry.
3. Product Development
Product development focuses on creating new products or enhancing existing ones to meet customer needs better. This strategy aims to stimulate growth by offering innovative solutions that address market demands and improve customer satisfaction.
Developing sound customer insights is essential for successful product development. Big companies developing new products might call this “research and development” (R&D). By understanding market trends and customers’ lives, businesses can identify opportunities for innovation. This might involve introducing entirely new products, improving features of existing products, or adapting products for different uses.
Collaboration with customers during the development phase can also provide valuable insights and ensure the final product aligns with their expectations. Ongoing product development will not only help retain existing customers but also attract new ones by keeping your offerings relevant and competitive in the market.
Read also: How to Learn Jobs to be Done
4. Diversification
Diversification involves expanding your business into new markets with new products. This strategy is also pursued to reduce risk by spreading it across different products or markets, ensuring that a decline in one area does not severely impact the overall business.
There are two main types of diversification: related and unrelated.
Related diversification means expanding into a new market with products that are connected to the existing problem your offerings solve for customers. For example, a company that produces high-perfomance running footwear might start offering high-performance running apparel--all connected to readying an athlete for their sport. Unrelated diversification involves entering markets where you solve a different problem for customers, such as a high-performance running footwear company beginning to offer trendy casual footwear.
It is important to consider your company’s current capabilities when making this decision. Does this entail developing a new profit formula, processes, or resources, and what’s the implication of your answer? While diversification can offer significant growth opportunities, it also comes with increased risk and requires substantial market research and strategic planning to ensure successful implementation.
5. Joint Ventures and Partnerships
Joint ventures and partnerships allow businesses to collaborate with other companies to leverage each other's strengths and resources. This strategy can help businesses enter new markets, share risks, and access new customer bases more effectively than going it alone.
In a joint venture, two or more companies create a new entity to undertake a specific project or business activity, sharing profits, losses, and control. Partnerships can range from strategic alliances to long-term collaborations where companies work together while remaining independent. By combining expertise and resources, businesses can innovate faster and achieve goals that might be difficult on their own. Successful joint ventures and partnerships require clear communication, aligned objectives, and mutual trust to navigate the complexities of shared business operations.
Read also: Overlooked Traits of Successful Startup CEOs
6. Mergers and Acquisitions
Mergers and acquisitions (M&A) involve the consolidation of companies or assets. This strategy is often pursued to achieve rapid growth, gain competitive advantage, or enter new markets without the need to build new operations from the ground up.
Mergers occur when two companies combine to form a new entity, while acquisitions happen when one company takes over another. The benefits of M&A include increased market share, access to new technologies, expanded customer bases, and enhanced operational efficiencies. However, M&A can be complex and risky, involving significant financial investment and cultural integration challenges. Successful mergers and acquisitions require thorough due diligence, clear strategic alignment, and effective integration planning to realize the potential benefits fully.
7. Digital Transformation
Digital transformation involves integrating digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. This strategy is essential in today's digital age, where technology can significantly enhance efficiency, customer experience, and competitiveness.
Startup companies have the advantage of building their business from a blank page. So they can implement digital practices and processes from the beginning, without replacing existing manual or analog approaches.
Key aspects of digital transformation for more mature companies include automating processes, utilizing data analytics for informed decision-making, and adopting new digital tools and platforms.
For example, implementing customer relationship management (CRM) software can streamline interactions with clients, while leveraging artificial intelligence (AI) can offer personalized customer experiences and predictive analytics. Additionally, shifting to e-commerce platforms can expand market reach and provide customers with more convenient online purchasing options. Embracing digital transformation, and fostering a mindset of continuous innovation and adaptability, may require a cultural shift among some individuals within any organization.
Read also: 50 Top Apps, SaaS Solutions, Services and Sites for Startups
8. Customer-Centric Approach
A customer-centric approach places the needs and preferences of customers at the forefront of business decisions. I also think about this as keeping top of mind the specific problem the company solves for its customers. By focusing on delivering an exceptional customer experience that helps someone make the progress they seek in their life, businesses can enhance satisfaction, build loyalty, beat competitors, and drive growth.
To adopt a customer-centric approach, companies must prioritize collecting and analyzing customer feedback to understand customers better. This can be achieved through various customer discovery or design thinking techniques (from one-on-one interviews to surveys to social media engagement). Businesses must then strive to apply those insights by tailoring products and services to individual customer preferences. Implementing robust customer service practices, such as timely support and proactive communication, can further strengthen customer relationships. By consistently putting customer understanding first, businesses can differentiate themselves in the market and create a loyal customer base that supports sustained growth.
Read also my Medium blog posts on customer discovery techniques.
9. Data-Driven Decision Making
Data-driven decision-making involves using data and analytics to guide business strategies and operations. This approach enables companies to make informed decisions based on insights rather than intuition or guessing, leading to more effective and efficient outcomes.
To leverage data-driven decision-making, businesses need to collect relevant data from various sources, such as customer interactions, market trends, and internal processes. Utilizing advanced analytics tools and techniques, companies can extract valuable insights from this data to identify opportunities for improvement and growth.
For instance, analyzing sales data can reveal patterns in customer behavior, helping to optimize marketing efforts and product offerings. Additionally, data-driven decision-making can enhance operational efficiency by identifying bottlenecks and areas for cost reduction. By integrating data into the decision-making process, businesses can stay agile and responsive to changing market conditions.
10. Sustainability and Corporate Responsibility
Sustainability and corporate responsibility focus on conducting business in a way that is environmentally friendly and socially responsible. This strategy not only helps protect the planet but also enhances a company's reputation and fosters long-term success. In this same vein, companies have a responsibility to support the learning, growth, and development of their team members.
Sustainable practices include reducing carbon footprints, minimizing waste, and using renewable resources. Companies can also engage in corporate social responsibility initiatives, such as supporting community projects, ensuring fair employment practices, and promoting diversity and inclusion. By adopting sustainable and responsible practices, businesses can attract similarly-minded consumers, meet regulatory requirements, and build a positive brand image. Additionally, sustainability efforts often lead to operational efficiencies and cost savings, contributing to overall business growth. Embracing sustainability and corporate responsibility is ethical but also strategic, positioning companies for future success in a world increasingly focused on environmental and social impact.
A Path to Sustainable Business Growth and Success
Implementing the right growth strategies is crucial for any business aiming to expand and thrive today. By thinking about market penetration, market development, product development, diversification, joint ventures, mergers and acquisitions, digital transformation, a customer-centric approach, data-driven decision-making, and sustainable practices, you can improve the odds of your business achieving substantial growth and long-term success.
These 10 strategies provide a comprehensive framework for navigating the complexities of business expansion. They will help you enhance your market presence, innovate continuously, build strong customer relationships, and operate responsibly. Remember though, the key to successful implementation lies in tailoring these strategies to your unique business context and staying adaptable to changing market conditions.
If you’re a startup CEO, founder, or entrepreneur, and you want to chat about evaluating or implementing these strategies and whether I can help, I’d love to connect. Learn about my services and please reach out.
A blogging experiment, this post was written with some help from AI.How to Become a Thought Leader in Your Industry
In this post, I discuss the essential steps to becoming a thought leader in your industry by elevating your reputation, engaging your audience, and influencing others with your unique expert insights. This can be a fantastic way for startup CEOs, founders, and entrepreneurs to raise the profile of your business too.
Photo by Anna Tarazevich from Pexels.
In case you’re new here - I'm John Gauch – a seasoned fractional COO, sales coach and mentor. Over 20+ years, I have applied my growth and operations skills to help dozens of startups, building one high-impact venture to nearly $100M in revenue and a second to exceed that benchmark. I began my career as a tech lawyer in New York City and developed my expertise in progressive roles in business development, finance, sales, marketing and product, working along the way with companies like Amazon, IBM and Microsoft.
Becoming a thought leader in your industry is a fantastic way to share your experience and learnings. It can also be a fantastic way to bring attention to your startup.
This guide provides strategies and actionable insights you can apply to establish authority and influence in your field.
Being a thought leader positions you as a credible expert, creating opportunities for media exposure and collaboration with others. It is based on trust and loyalty among an audience. Having actual expertise is necessary (of course) but may not be enough. There are key steps you can take to help you achieve this standing.
It’s harder than ever for businesses to get people’s attention. The business landscape is ultra-competitive. If you’re a founder or CEO of a startup, establishing yourself as a thought leader can cut through the noise and raise the profile of your company and product with prospective customers, investors and employees.
What is a Thought Leader?
So what exactly is a thought leader? A thought leader is an individual recognized as an authority in their field—someone whose expertise and perspectives are sought after and valued. They influence and inspire others. Embracing thought leadership is not just about gaining recognition, though; it's an opportunity to drive change, spur innovation, and lead the conversation in your space.
Understanding Thought Leadership
Becoming a thought leader requires more than just expertise; it involves a commitment to sharing knowledge and influencing others. Thought leaders are characterized by their deep understanding of their field, their ability to foresee industry trends and their willingness to share their insights to help others.
It's important to differentiate between a thought leader and an influencer too. While influencers often rely on popularity and social media presence, thought leaders build their reputation on their expertise and the value this provides. Thought leaders are trusted voices in their industries, guiding others.
Successful thought leaders can be found across various sectors, such as Simon Sinek, in leadership and management, and Brené Brown, in personal development and leadership.
Read also: Overlooked Traits of Successful Startup CEOs
Steps to Becoming a Thought Leader
Identify Your Niche
Choose a specific area to focus on. Your niche should align with your passions and strengths, and it should be a field where you can offer rare insight and perspectives. To identify your niche, start by evaluating your skills, experiences and interests:
What topics are you most passionate about?
Where do you have the most expertise and experience?
What industry trends or challenges excite you?
Once you've identified your niche, do some research. Pinpoint gaps in the market where your insights can make a significant impact. A targeted approach will help you establish yourself as a go-to expert in the chosen field.
Build Your Knowledge and Expertise
Becoming a thought leader requires a deep and continuously evolving understanding of your niche. This means committing to staying up to date with the latest industry trends and advancements.
Continuous Learning. Enroll in relevant courses, attend workshops, and pursue certifications that enhance your knowledge base.
Reading and Research. Regularly read industry publications, research papers and books authored by other thought leaders.
Networking. Engage with other experts in your field through professional associations, online forums and industry events.
Create High-Quality Content
Creating and sharing high-quality content is essential for establishing yourself as a thought leader. Your content should reflect your expertise, provide value to your audience and demonstrate a unique perspective.
Blogs and Articles. Write informative and engaging blog posts or articles that address common challenges in your industry. Be sure to use real-world examples and case studies to illustrate your points.
White papers and E-books. Develop in-depth white papers or e-books that offer comprehensive insights into specific topics.
Videos and Webinars: Utilize multimedia content like videos and webinars to reach a broader audience. These formats also allow you to explain complex ideas in a more accessible and engaging way.
Social Media. Share your content on social media platforms to increase its reach.
Engage with Your Audience
Engagement is a key component of thought leadership. It's not enough to just produce content; you need to actively interact with your audience to build a strong community. It's crucial to use platforms like LinkedIn to share your content and engage in conversations. Responding to comments, answering questions, and participating in discussions relevant to your niche will enhance your visibility and credibility.
Encouraging followers to share their experiences and insights fosters a collaborative environment, where everyone can learn and grow together. Moreover, seeking feedback from your audience helps you understand their needs and preferences, providing valuable insights for improving your content and approach.
By actively engaging with your audience, you demonstrate that you value their input and are committed to their growth and development. This interaction reinforces your position as a thought leader, further establishing your credibility and influence in your field.
Network with Other Leaders
Networking with other thought leaders and industry experts can amplify your influence and provide valuable opportunities for collaboration. Building relationships with peers can also offer new perspectives and insights that enrich your own understanding of your focus area.
Attend Industry Events. Participate in conferences and seminars
Join Professional Associations. Becoming a member of professional organizations can help you connect with like-minded individuals and stay updated on industry trends.
Collaborate on Projects. Look for opportunities to collaborate with other experts on projects, research or content creation. Leverage each other's strengths and reach a broader audience.
Mentorship and Coaching. Engage in mentorship, by mentoring others and seeking guidance from more experienced leaders.
Speak at Industry Events
Public speaking is a powerful way to establish yourself as a thought leader and share your expertise with a wider audience. Speaking at industry events allows you to showcase your knowledge and connect with professionals in your field.
Developing compelling presentations that highlight your expertise and provide valuable insights is essential. Ensure you practice your delivery to make your presentations more impactful. Compelling visuals and real-world examples will keep your audience interested and involved. Where possible, follow up with attendees after your speaking engagements to strengthen your connections.
Read also: 50 Top Apps, SaaS Solutions, Services and Sites for Startups
Measuring Your Impact
Measure your impact as a thought leader to understand your influence and improve your strategy. The metrics will vary depending on the medium you’re using to communicate.
Engagement metrics will show which content resonates most with your audience. More followers show your credibility is growing, and shares suggest your content is spreading effectively. Analyze this data to refine your strategy. Focus on content that generates high engagement, and revise underperforming content. Regularly measuring your impact ensures your efforts are effective and keeps you aligned with your goals.
By following this guide, you can leverage your hard-earned experience to make your voice more influential. Becoming a thought leader is a powerful way to inspire others and drive change. Successfully pursuing this path will also raise the profile of your startup and its products effectively and powerfully, by providing value to your target audience.
If you’re a startup CEO, founder or entrepreneur, and you want to chat about what you are building and whether I can be helpful in some way, I’d love to connect. Learn about my services and please reach out.
A blogging experiment, this post was written with some help from AI.50 Top Apps, SaaS Solutions, Services and Sites for Startups
Startup CEOs and founders are very demanding when it comes to the tech they use to run their businesses. They have high expectations. They should, too. See how this list of apps, SaaS solutions, services, and sites lines up with your tech stack and hopefully get some new ideas for what to add or switch. Updated November 20, 2024.
Photo by Magda Ehlers from Pexels.
I hope you find this list helpful - I'm John Gauch, a consultant with extensive experience in business operations and growth. I specialize in helping startups implement both strategies effectively. As a fractional COO, I work with founders and CEOs through each step, tailoring solutions to your unique needs and objectives.
Updated November 20, 2024.
What started as a list of 50 startup products has grown well past that figure, and I’d love to keep adding to it.
I personally don’t find those lists or infographics of every possible product option for a problem I have super useful. I don’t need another time-sucking To Do, to evaluate all of the choices. I want to know what’s a reasonably safe bet, get started with it and turn back to the business of growing my company.
This list is biased toward Seed to Series A companies because that’s where I spend most of my time, although it also includes some products for brand-new companies (drawn from the venture studio work I do). With regard to each product on the list, I've either used it, and I recommend it, or someone I know and trust has used it, and they recommended it to me. That said, feedback is invited—if you feel like something should be added, or if you have used one of the products and had a negative experience. Email me and let me know.
If you ever need referrals to startup attorneys, message me to chat. As a former lawyer and former General Manager at legal startup Axiom, I know tons of incredible lawyers across specialties and fields, including top-notch solo practitioners as well as members of AmLaw 100 firms like Morrison & Foerster and Perkins Coie, regional players and startup boutiques.
I don’t mention project management tools (e.g., Asana, ClickUp, Monday, Trello) because everyone seems to have a favorite, and they all seem reasonably decent. I use Trello for my personal task tracking. I wouldn’t spin too long trying to ascertain which one of them is “best.”
Again, if your choice of a new web app (etc.) to add to your startup’s tech stack is not going to make or break your business, don’t over-index on it. Do some quick research. Get together a couple or a few ideas. Do a brief analysis and review. Pick one and turn back to the activities that are going to be far more impactful on your organization and its success.
That’s the benefit of having a list like this. I hope it helps.
Top Startup Tools
| Product | Description | Other Options | ||
|---|---|---|---|---|
| 1Password | Password management and security | |||
| Guideline | 401(k) providers | Human Interest | ||
| Ahrefs | Ahrefs for SEO analysis and backlinks; AlsoAsked for keyword analysis on competitors and search term difficulty | Also Asked | ||
| Airtable | Collaborative work management | |||
| Amazon AWS | Cloud computing | |||
| Apollo | List building from search critera. Send sequences. Consider checking out new kind on the block Unify | Unify | ||
| Arc Tech | Treasury services | |||
| Bill.com | Billing and financial automation | |||
| Brandpad | Brand development and management | |||
| Brixx | Financial forecasting and planning software | |||
| Carta | Equity management and valuation, but watch the latest news about them | Pulley | ||
| ChatGPT | AI platform to help with a little bit of everything | |||
| Clay | Import lists and enrich them (more options than Apollo). Consider also checking out newcomer Unify | Unify | ||
| Clerky | Legal and compliance solutions (company setup) | |||
| Clockify | Time tracking | |||
| DailyBot | Slack stand-ups | |||
| Deel | Global payroll and compliance. Deel is an EOR that recently purchased a PEO | |||
| DocSend | Document sharing and tracking (for a fundraising, DocSend + Dropbox or Google Drive + Google Sheets for tracking) | |||
| Docusign | Electronic contracts | |||
| Expensify | Expense management and tracking | Tentative: Float (Canada) | ||
| Figma | Design and prototyping | |||
| Flowster | Workflow automation and processes | |||
| Freshworks | Customer engagement and support software | Zendesk | ||
| GitHub | Software Engineering version control and collaborative software | |||
| Google Analytics | Website analysis | Hotjar | ||
| Google Workspace | Collaboration and productivity tools (email, storage, etc.) | Dropbox (storage only) | ||
| Grammarly | Communication assistant including AI support | |||
| Greenhouse | Recruiting and applicant tracking | Breezy | Recruitee | |
| Guideline | 401(k) providers | Human Interest | ||
| Gusto | Payroll, benefits, and HR services | Humi (Canada) | ||
| Hubspot | Customer relations management (CRM) | |||
| Indinero | Bookkeeping service. The Bench recommendation is tentative | Bench | ||
| Intercom | Customer messaging and support | |||
| Jenkins | Open-source automation server for continuous integration and delivery (CI/CD) | |||
| Gusto | Payroll, benefits, and HR services | Humi (Canada) | Rippling | |
| Linear | Issue tracking and project management | |||
| Loom | Video messaging | |||
| Mercury | Banking for startups and businesses. Consider Mercury credit card too | Bluevine | ||
| Microsoft Azure | Cloud computing platform | |||
| Microsoft 365 | Productivity apps (still use them as good as Google is) | |||
| Miro | Online collaborative whiteboard | Excalidraw | ||
| NeverBounce | Stand-alone email deliverability solution | |||
| Newfront | Insurance brokerage | Founder Shield | ||
| Notion | Collaborative workspace for your organization | |||
| Okta | Identity and access management | |||
| PaperStreet | Investor updates | |||
| Pave | Compensation information for startups | |||
| PitchBook | Data and research for private investments | |||
| Quickbooks | Cloud accounting software. Also hearing increasingly about Campfire in this category | Xero | ||
| Rippling | HR PEO | Justworks | ||
| Ramp | Corporate card and services. Brex may not be an option for smaller startups | American Express | Brex | |
| Segment | Customer data platform | |||
| Secureframe | Compliance and security automation | |||
| Slack | Team messaging | |||
| Stripe | Online payment processing and business tools | |||
| Supernormal | AI tool for meetings | |||
| User Interviews | Customer research | |||
| Vouch | Business insurance. Also Embroker | Zen Insurance (Canada) | Hiscox | |
| Voxer | Team audio messaging | |||
| Webflow | Website design and development | |||
| WeWork | Co-working (in bankruptcy but still operating) | |||
| Wise | Foreign exchange | |||
| Yubico | Hardware security keys | |||
| Zoom | Video conferencing |
While the companies aren’t vetted, another interesting place to search for potentially valuable services is the Y Combinator community of companies.
If you’re a startup CEO or founder, and you feel it would be interesting to chat, I’d love to connect. Learn about my services and please reach out.
What I Need to Know to Make Investor Referrals
These are the six things I need to know to make investor referrals for CEOs and founding team members when we haven’t worked together before. Answering these six questions is also a valuable shorthand for quickly vetting any new business idea.
Photo by Christina Morillo from Pexels.
In case this is your first time at the site - I'm John Gauch, a consultant with extensive experience in business operations and growth. I specialize in helping startups implement both strategies effectively. As a fractional COO, I work with founders and CEOs through each step, tailoring solutions to your unique needs and objectives.
I love to be helpful whenever I can be. This is particularly true when it comes to supporting startup CEOs and founding teams. Making introductions is one way I can do that.
The intro could be to someone with expertise in an industry or a specific role (etc.). Sometimes, it's to investors. If I haven't worked with a company, it can be a little challenging to make investor introductions, though.
To address that difficulty, I've summarized the essential information I need to know to introduce a company to investors in situations where I haven't worked with that company for an extended time.
It’s also useful as a shorthand for quickly vetting any new business idea.
There are six questions.
The first question is: What is the problem to be solved?
In particular, I want to know whether an unmet or under-met need is arising in people’s lives. I'm looking for something visceral. I sometimes ask people to imagine the first part of a typical Shark Tank pitch, where the entrepreneur describes some hardship they've experienced or observed. People aren’t going to change their ways if they don’t feel a push arising from an uncomfortable situation.
The second question is connected: What are the existing alternatives to solving this problem?
Maybe it's a current something that falls short in accomplishing a task. Maybe there isn't a good existing alternative at all, and people are silently struggling--unhappy and unable to progress toward the better future they imagine.
The third question is: When does this situation arise?
What's the specific context when this unmet or under-met need shows up? Again, the idea here is to be very specific. Who are the people this happens to? When do they face the situation? What are they doing at that time? Why are they doing it?
You'll notice very little about the product so far, which is by design. Most important is whether you have identified and can describe a compelling problem worth solving. That's what we're trying to understand with these first three questions. Once you've gotten this far, you should tell an in-depth, true story about a struggling situation in which people find themselves.
Read also: How to Learn Jobs to be Done
Now you can answer question 4: What does your product do?
The description should detail how the product bridges the current gap between what people are trying to do and what they can achieve now.
Part five follows: How big is this opportunity?
Is this a $1 million revenue opp or something much bigger? Ash Murray suggests entrepreneurs start with a back-of-the-envelope calculation and then move onto a more detailed estimation, in each case looking at your annual recurring revenue in month 12 of year 3 after your launch. I like his approach.
I created my own step-by-step guide (originally for a University of Hawaii startup program) that you can find here.
Ideally, you’ll also show the total addressable market size, and how it was determined (hint: it should be based in part on the information you’ve described in questions one to three).
Read also: Estimating Product Market Opportunity
The last question, and it’s often a hard one to answer: Why now?
Why could your product only exist now versus a year ago or 10 years ago? There are many intelligent and creative people in the world, and many are struggling to progress in different aspects of their lives. A compelling “why now” answer suggests you’re working on a problem that could only be solved recently. This increases the attractiveness of the idea significantly because it could be a genuine new-to-the-world innovation.
It raises questions if your product could have existed anytime in recent history and hasn't or did but doesn’t now.
Maybe there isn't a problem to solve after all. People have tried and failed, and you’re just the latest making an attempt.
Maybe there's an issue with feasibility. People have tried and failed because the product can’t be built or the business model math doesn’t work.
Maybe the product isn’t differentiated from a bunch of current alternatives. It’s just one more product in a long list of similar products that have been around for a while.
If there’s not a good “why now” answer, it doesn't mean you can't continue to build your business and maybe even thrive, but it suggests it may not be an explosive new opportunity with tons of growth potential.
Could you have discovered an enormous opportunity that others have missed or failed to execute? I suppose so, but in that case, could you explain why that may be.
If I could only ask an entrepreneur one question about their company and product it would probably be this.
Answering these six questions will help ensure your new business is on the right track and help me or anyone else share your message with others.
What's the unmet or undermet problem?
What are the current alternatives that are falling short?
What is the context?
What is the product?
What is the scale of the opportunity?
Why is this idea coming into existence now?
For my covering intro email to investors, I’d also love to highlight the traction you've gotten so far (e.g., notable customer numbers, wrapping up a round, a brand-name investor) and what you’re looking for from the meeting (e.g., a networking meeting to talk about the space you’re operating in or a call to see if they’re interested in participating in a fundraising round). Sot let me know that too.
Read also: Navigating Startup Fundraising: Insights from an Experienced COO
With this information, I can make an informed and meaningful investor introduction that will serve both parties well.
I’m always happy to chat about business building. Please reach out to learn more about my work or just to be and stay in touch.
How to Learn Jobs to be Done
Find out how to get started with Jobs to be Done, do your first JTBD interviews, get colleagues on board with the concept, and deepen your outstanding of the framework, methods and tools--to start and grow a business and align a team.
Photo by Leah Kelley from Pexels.
In case this is your first time visiting - I'm John Gauch, a consultant with extensive experience in business operations and growth planning. I specialize in helping startups implement strategies effectively in both areas. In my work as a fractional COO, I work with founders and CEOs through each step of the process, tailoring solutions to fit your unique needs and objectives.
Creating and sustaining a successful business entails doing countless things right. Knowing the Job to be Done (JTBD) of your customers and how your product helps them may not make it easier to start and grow a company, but it will make what you should be doing more obvious--and less subject to guesswork.
Co-architected by Clayton Christensen and Bob Moesta, a "Job to be Done" is the progress someone is trying to make in a struggling situation. Putting the JTBD framework to use effectively requires a commitment to understanding people's lives.
It is less about, "How do I make people want my product?" More about, "How do I make a product people want?"
It is less about, "How do I 'sell' more of my product?" More about, "How do I help people make the progress they are seeking?"
Applying the JTBD framework tells us why people pull your product into their lives, how to communicate with them compellingly, and how to satisfy them after they make a purchase. It can also tell us whether a brand new product idea is likely to work or not. In a May 2012 interview with Horace Dediu, Christensen contemplated: "10 years down the road, people will look back at my research, and they might say this idea of Jobs to be Done is a bigger idea than was 'disruption'," the theory that initially brought Christensen to the business world's attention.
Today, people around the globe put JTBD to use at companies of all sizes across industries.
Not only will applying JTBD and the associated mindset help you grow a business and innovate. When combined with practices and tools such as customer experience mapping and complementary metrics, leaders can articulate a clearer vision, dial in the organization's value proposition, align the team, and develop accountability among team members.
Read also: Estimating Product Market Opportunity
To learn all about JTBD, and how do do and use customer interviews, read my series of posts on the topic at Medium.
If you’re a startup CEO or founder, and you feel it would be interesting to chat, I’d love to connect. Learn about my services and please reach out.
This blog post appeared originally on LinkedIn.