How to build big companies which are worth the pain
- Find something you care for. Something that you really want to solve.
A good benchmark is to ask -> If this is something I am doing for 10 years everyday, will I be happy? Would you be happy if you just grew 5% week-on-week for 10 years, without the kind of hockey stick growth one hopes for. If it is a no, don’t jump into it. Find something that is a yes.
Or if you have a really cool, low involvement(completely online/ app) idea, build it, see the kind of traction it gets before leaving your job and plunging into it full timeeg: Do you want to solve the blue collar jobs problem – Yes
Do you want to solve the middle school education problem – Yes
Do you want to make top notch facilities available to middle class kids? – Yes
Do you really want to help people buy & sell cars – Not really
Jack MA- I want to bring Chinese companies online – BAM
- Dream the future. How does the industry you want to impact change in 10 years
What can be inproved? What new technology can change in this industry?
Imaginthe future & build it. Don’t do anything incremental. Think disruptive. Think how can the industry / experience be improved significantly
- Overlay a layer of pragmatism. Build an MVP of the future you have dreamt. Does it excite users? Does it excite you? Can you find a way to build towards the future you imagined, while making money / getting traction today? How will you keep urself + team motivated for 7 years? You need to build something today that brings money OR investors OR solid traction?
- Companies are derivatives of something. Make sure the underlying is growing like crazy. Only then you can ride the wave
- Find a way to build that future, That is what entrepreneurs have to do. Make a way to make the future happen eg: COD, returns, Practo, ola (activation 99 offer), Capitalfloat. Find hooks that get early adopters. Find hooks that makes people try out the future. If you are excited about the future, find a way to pave your way to there. Push. Push. Make it happen. That is what you are supposed to do
- Invest in marketing. Get to users as early as you. Validate your dream of the future. See if users buy in. Else find hooks to make the users give the future a try
- Raise money
Alternative framework to evaluate companies :
1) Company is a derivative of an underlying. Underlying should grow very fast for the company to fly
2) Evaluate the company based on the next best alternative available for the TG. Is the TG unhappy with the issues of the current best alternative? Can the new company solve the problems voiced by the TG? It is a problem if the complaints of the TG are unrealistic/ can’t be solved?
tip: Ask the TG for potential solutions to the issues that they highlight. DO they have any ?
3) Generating trials should be easy- How easily/cheaply can you get the user to use your service
This is a function of current demand (#searches) & frequency (repeat) and familiarity (has he gone through the process earlier to appreciate a new solution?)
4) In India, unicorns are being built in fields where targeting tier2/3 towns & villages. Where geographical constraints are not an issue ( paytm, flipkart)
5) Anything that creates efficiency / improves resource utilization/ reduce idle time for businesses/ SMEs/ Workers becomes valuable
Gabrice Grinda’s framework: