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
  • Defensibility
    • Network
    • Data
    • Switching cost
    • Counterpositioning to other industry
    • Inception
    • 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.
• PMF
  • 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
• investing
  • 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:

1. Scale Economies: The ability to achieve lower costs and higher margins through economies of scale as the business grows.

2. Network Economies: The value and advantage derived from having a large network or ecosystem of users, customers, suppliers, or partners.

3. Counterpositioning: The ability to occupy a unique and advantageous position in the market that is difficult for competitors to replicate or challenge.

4. Process Power: The power derived from superior processes, systems, or technologies that enable efficient and effective operations.

5. Branding Power: The strength of a recognized and respected brand that can command premium pricing, customer loyalty, and competitive advantage.

6. Cornered Resources: The control or ownership of scarce or unique resources, such as essential inputs, intellectual property, or distribution channels.

7. 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

Linking

• MOC Strategy

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