What business are we really in?

Old music tape

The business we are in is the problems we solve, not the product we sell. During times of great technological upheaval, problems get solved in new and unexpected ways.  This is how companies get disrupted. The single way to ensure any business remains valid is this:

We must always love our customer more than we love our infrastructure. 

If we truly do this, then we’ll be able to endure the pain required during the inevitable transition.

Follow me on SnapChat – search ‘Sammartron’ for more business insight. Click here if on mobile to add now

Questions established companies must ask themselves

future

“How could our customers do this thing without us?”

“What can be removed from the process and still solve this problem?”

“How could this problem be solved without using a physical product?”

“What technology is likely to be introduced into our things?

“What will happen to prices of the thing we sell when more technology is introduced.?”

“What would a new entrant into this market likely do to meet customers needs?”

Once these questions are answered sufficiently and honestly, they ought go ahead and do these things. They are going to happen anyway aren’t they?

Follow me on SnapChat – search ‘Sammartron’ for more business insight. Click here if on mobile to add now.

When to resist technology

My readers know that I love technology –  I literally rub my face in it.

But technology is not always the answer. Sometimes it pays to resist the use of it. This is especially true when technology lacks differentiation or is the lazy option. A hand written letter has far more value today than an email, tweet or whatsapp message does. We know you care more, we know you made more of a concerted effort with a pen and a post box.

It comes down to swimming against the tide. Music is one industry that has been impacted incredibly by new technology. Every laptop is a world class studio, opening up the music making to everyone regardless of their budget. But prized musician David Byrne (of Talking Heads fame) has some interesting views on why this might not be the answer to make great music. Watch the video below, and think about the work you do and how it applies. If you listen close enough you’ll come up with some new anti-tech ways to both make a difference and a better product. Enjoy!

Follow me on SnapChat – search ‘Sammartron’ for more business insight. Click here if on mobile to add now.

The problem with ‘How To’ advice

How to Advice

The internet is filled with How To advice. Which proves how important it is in building the life you want. But it has a simple flaw we ought remember:

How to advice is disposable.

How to’s are a set of tactics which need to change as the world around us changes. This means we need to constantly re-assess what we know, and ask if it is still relevant. With the pace of technological change today, this is a question we need at the top of our list.

This is why philosophy is always greater than tactics. Philosophy is enduring, and tactics and temporary. If we have a guiding philosophy on what we are doing and why, finding the best tactic for the day becomes infinitely easier.

You should totally read my book – The Great Fragmentation.

A tyre is only flat at the bottom

flat tyre

When I got my first car I once had a flat tyre and asked my dad if he could come out and help me change it, show me how to do it. And he said;

“I wouldn’t worry about it, it’s only flat at the bottom.”

A pretty funny dad joke. But a very good analogy for problems we face in business.

The entire business is running smoothly, except for some cultural problems in the warehouse.

The UX and product market fit of the app is great, the server is just a bit slow.

The retail store layout, the range and prices are all perfect, we just keep running out of stock.

Our startup is perfectly placed to disrupt this industry, it’s just there’s no way to scale it.

Our customers, supply chain and brand perception are as good as it gets, it’s just our margins are too small to make a reasonable profit.

While the tyre may only be flat at the bottom, it affects the entire operation.

You should totally read my book – The Great Fragmentation.

The 2 simple questions all successful startups have answered

Here’s two great questions to ask when starting a business endeavour:

  1. Is there a gap in the market?
  2. Is there a market in the gap?

Question 1 is about needs being unmet or not fully satisfied. In the realm of disruptive technology, you may be able to solve customers problems a better way. The gap in the market could even live at the emotional level – $200k Hermes handbag anyone?

Question 2 is about whether we can make money filling it. Until we have real revenue and real costs, outside of a VC funding cycle the question remains unanswered. Users alone, do not a market make – just ask Fab.com. The cool thing about being small is that previously unprofitable segments for big players can now become a super efficient money spinners. Legacy infrastructure is the enemy of today.

These questions are not new, but we’ve got new tools to ask them with. We can know about the market gaps quicker, and maybe even change what they answers are.

You should totally read my book – The Great Fragmentation.

Why I already trust you

lost of faces

People often talk about earning someones trust. Which is a bit like saying, I think you’re a jerk until you prove otherwise. My approach is the opposite. I trust you from the outset. The moment we meet you have my trust. Occasionally this means I get burnt. Probably around 5% of the time, it turns out to be a bad policy. Which then gives you a clear indication of why I choose to trust first. Most humans are good, and will honour the trust given to them. Which means that 95% of the time it works out well.

The problem is that most companies make policies to account for the 5% of bad apples. The few that take advantage of things. They punish the majority to account for minority. A better option is to have a business model with the robustness to account for those we who do the wrong thing. By doing this we respect the humanity of our most important customers, the majority. They also happen to be the trustworthy ones.

You should totally read my book – The Great Fragmentation.