Choice takeaways from VC Fred Wilson on tech and Internet ventures when he spoke at HBS from Seeing Both Sides.
- “Early on in a start-up, entrepreneurs should be hunch-driven more than data-driven. If you are only data-driven, the risk is that you will move too slowly. It’s more important to have a hypothesis about what might work and what might not work and then see what happens in the marketplace to prove or disprove that hypothesis.
- Lean start-up as a methodology or approach is very useful, but isn’t a guarantee for success by any stretch. Think of the methodology as a machine. If you have garbage inputs, you will still have garbage outputs. There’s no substitute for good strategy, great entrepreneurs and a very large market opportunity.
- When considering when to monetize your new product/service, think carefully about whether the monetization strategy actually improves the service or is a distraction. Banner ads on Facebook are a distraction (as Zuckerburg supposedly said in the movie Social Network, “No ads. Ads aren’t cool.”) But, for example, on Etsy if someone pays for a product, it inspires producers to create more products. Thus, the monetization is harmonious with building the service.
- If you are going to fail, and certainly with more start-ups being created and seeded we will see more failure, be sure to fail gracefully. How you handle yourself as you unwind / seek a soft landing will reflect heavily on you and will cement your reputation.
- Don’t worry about whether you are building a feature, a product or a company. Build something great, have huge passion for it, engender affection with a large customer base, and let the rest follow.
- If you get traction, transform your company into a platform. The most valuable companies are those where third parties help you grow by plugging into your services like a utility.
- VCs don’t make companies successful. They can believe in and support a company, but ultimately the entrepreneurs make or break the company’s success and don’t let anyone (particularly an egotistical VC!) imply otherwise.”
Is Marketing for companies with sucky products?
Published February 27, 2011 Business , Commentary , Entrepreneurs/Startups , Marketing 3 CommentsVC Fred Wilson writes “Marketing is for companies who have sucky products.”
Yes. And No.
I absolutely agree with him that the key is to build a great product and not force or pay for marketing. But much of building that product … is marketing.
Fast growth doesn’t magically happen.
Marketing is the difference between technology – which is a better widget – and a product – which is a better widget that gets used. Marketing is THE customer expert and advocate.
Marketing is responsible for understanding customer pain and market competition and opportunities. Marketing ensures that product has the right features, optimal positioning, pricing, packaging, and promotion, and a market and customer-oriented product roadmap. Marketing typically writes the business and marketing plans and develops the pitch and slide deck to help gain funding. Marketing directs the UI, grows and supports evangelists, handles outgoing and incoming communications, articulates and writes benefits and copy, and develops partners and channels.
All of this is critical to fast track the product so it can go viral and be a great success … without spending the unnecessary money or time on PR, SEO, and other external programs that Wilson cites.
Market on!
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