Do Something Useful For Yourself

Why aren't there more successful startups? Quite simply, to succeed is difficult. I was reminded of this while reading Bambi Francisco's interview of Michael Moritz:

How do you become the next Google, Yahoo, Apple Computer or Cisco Systems? If you asked Mike Moritz, a veteran venture capitalist at Sequoia Capital, who funded at least two of the world's best known Internet companies -- Yahoo and Google -- the answer is simple as it is wise: "It's the idea that the founders are doing something that they think is useful for themselves. And, then, eventually perhaps, coincidentally, perhaps accidentally, they discover that the product or service that they have built because they wanted to use something like this is that of great interest to lots of other people... If arrogance was apparent at the dawn, it will inevitably permeate the company. If frugality, confidence, humility and a desire to develop a wonderful product or service were evident when an idea got started, then these will weave themselves into the corporate fabric. If modestly talented engineers were there at the beginning, the only people they will be able to hire will be the lame."

Sounds like just a more complicated way of saying, find a need and fill it.

I find a lot of wisdom in Ross Mayfield's "Embrace Change and Continually Improve" philosophy that I'm certain all successful startups employ:

The common thread I see is iteration. Good capital formation is milestone driven. Good teams iterate products as quickly as they can learn from their customers. Good businesses change their strategies.

That passage makes me want to paraphrase Tolstoy: All successful startups resemble one another, but each unsuccessful startup is unsuccessful in its own way.

On the other hand, all those means of unsuccess can be categorized simply, as Cringely once pointed out that "high-tech startups fail for only three reasons: stupidity, luck, and greed." Actually, in that article Cringely also makes the point that would-be entrepreneurs should

Do the product you want to do, not one that they want you to do.

Which sounds a lot like Michael Moritz's comment that started this typepad post in the first place. Now that I think about it, the best products are designed with a customer in mind, and therefore when the customer is the product designer, that tightens the iteration loop.

Comments

[Mark Shefsiek]

"Find a need and fill it" often takes the form of creating a perceived need where there is none and making people belive they must have it.

I am starting a start up philosophy and practice of life business and pimping the blog here.

http://drugsarenotfood.blogspot.com/

It is in no comment mode until the basics get put down but then it will open up for discussion and I will be available for teaching and trainings.

Any of you that are working with groups of people, trust me, you need this, really you do.

I am the anti-guru guru that shows you that you have everything you need.

That is something people need.

Take care.