Extractions from Podcast
https://open.spotify.com/episode/03LfsFPnDQPhQQ6igkXIsB?si=wmaQUZ5qRm62-7r3X_GPKg&context=spotify%3Ashow%3A6AVgt0Cx1Rnzrg2CBbEygM&nd=1 Guy Podjarny
- thinking outside the box - challenge status quo
- work in high intensity surrounding
- when you’re comfortable you’re not growing (no growth without pain)
- need to learn things very quickly
selling with believe in the product and not deal making
- break things down and extract main principles, find fundamentals
- then relate that to needs
- and grow thinking from there, build on those components
anchoring in the future … in fives years time, would that be more or less necessary, and why
- starts with asking that question
- steers to invest appropriately
- pick a different idea if you can’t strongly argue about 5 years time
- marketing timing in about 2 years
- big vision, small steps - don’t get stuck in a step, get going
- drill down on the market size?
- need to access to potential value proposition market size
- investors need to have a market size figure in there
- so think though that and walk them through you market size argumentation
- focus on magnitude of value … and then derive $value from there. (? not clear what that means)
it matters to be a leader in a market, it is not that much about being first in a market
- differentiation in the market matters
use messaging to build the right product
- message forces to distill the customer need, precise to the core points
- leads to higher focus
- translate to a customer need and understand their experience end-2-end
- think about the entire use case
- nobody cares about your product - they care about the problem you’re solving
- market evolves, product evolves, needs evolve - so messaging has to adapt
- develop fast, stay secure
you can’t be everything to everyone - have a precise picture of needs and the group with that needs
- pick a small/big enough slice and focus on that and then evolve from there
- ask and try to understand why something is not working
- Movement will go further in directions of team empowerment. So they will increase their buying power for tools/topics in future. Over time.
- product led, empowerment based and user focus solutions
- help users to communicate with their buyers and help the buyers understand the use case
- what is of main importance is the value to the user
- reversion back to bundling
- driven by cost savings
what is our primary value proposition?
- for productivity - how can you directly show that
- low frequency - high pain: you need high presence
- high frequency - low pain: reduce effort of picking solution must be small (lower the friction)
- low frequency, low pain - should just be a feature
7 powers framework - how do you deliver value to a customer
- How do you deliver a sustainable, superior, significant value
- calling it power instead of moat
- Defensibility in early stages?
- in the beginning you cant (except with exceptional knowledge, significant set of skill)
- Critical: How can that build something that can become defensible
- Switching cost
- Counterpositioning to other industry
- Legal protection
- In the beginning 90% of focus should be on finding product market fit and then think about 7 powers. Have a rough idea on the powers.
- when demand outweighs capacity to satisfy (e.g. can’t hire, spin up fast enough)
- product user fit to - get to the value AND product buyer fit - the business model that works
- who is it that you provide value for
- Speed of execution - the speed of iteration to accelerate speed of learning
- at the same time, iterate in the right direction
- Qualities of power (you know where to invest)
- Brand power - sell same product for significant higher price because of pride in product
- Process power
- Counterpositioning - Product Led Growth
- Exercise - take 4 primary competitor capabilities and write down how you differentiate from that
- what capabilities can you build and which ones are superior,…
- in 5 years from now …
- distill in top 1..2 top items
- 7 powers help to drive focus on where to invest, pick the next thing to do. Which of our powers help with the extension. What are our core market differentiators
- design partners - early customer that help you shape the product
- put a lot in due diligence
- invest for the learning
- mistake: investing in things that are obvious
- When you have a good idea, you are likely not the only one! You better get going
- Do not hire too big, too early
The 7 Powers framework
The “7 Powers” framework is a strategic framework developed by Hamilton Helmer. Book: 7 Powers - The Foundations of Business Strategy.
The 7 Powers framework identifies seven fundamental sources of power that can contribute to a company’s long-term success and competitive advantage. These powers are as follows:
Scale Economies: The ability to achieve lower costs and higher margins through economies of scale as the business grows.
Network Economies: The value and advantage derived from having a large network or ecosystem of users, customers, suppliers, or partners.
Counterpositioning: The ability to occupy a unique and advantageous position in the market that is difficult for competitors to replicate or challenge.
Process Power: The power derived from superior processes, systems, or technologies that enable efficient and effective operations.
Branding Power: The strength of a recognized and respected brand that can command premium pricing, customer loyalty, and competitive advantage.
Cornered Resources: The control or ownership of scarce or unique resources, such as essential inputs, intellectual property, or distribution channels.
Switching Costs: The costs or barriers that make it difficult or costly for customers to switch to a competitor, thus creating customer loyalty and reducing churn.
Being an entrepreneur provides a lot of special learnings
- fundraising - fundraising is part of building the business
- driving towards an MVP
- hiring smart people and attract them
- selling with empathy and getting the message through
- empathy & analytical
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