In the many thousands of articles advising entrepreneurs on what they have to
focus on to build successful startups, much has been written about three key
factors: team, product and market, with particular focus on the importance of
product/market fit. Failure to get product/market fit right is very likely
the number 1 cause of startup failure. However in all these articles, I have
not seen any discussion about what I believe is the second biggest cause of
startup failure: the cost of acquiring customers turns out to be higher than
expected, and exceeds the ability to monetize those customers.
In case you are not familiar with the importance of Product/Market fit, Marc
Andreessen has a great blog post on this topic: The Pmarca Guide to
Startups, part 4: The only thing that matters.
In this blog, Marc argues that out of the three core elements of a startup,
team, pr... (more)
Readers of this blog will likely really enjoy the following two presentations
that discuss lessons learned by the founders of both DropBox and Xobni.
There are lots of great lessons to be learned here.
Dropbox Startup Lessons Learned From Zero to a Million Users – Dropbox and
Xobni lessons learned
2014-15 Bridge Group SaaS Inside Sales Research Survey
The Bridge Group is known for publishing insightful studies that aid SaaS
Sales & Marketing leaders to build and optimize their inside sales
strategies. They are working on the 5th round of their SaaS inside sales
research and would like our help completing a 6-7 minute survey. Your answers
will remain anonymous, and in return the research promises action-oriented
guidance on compensation benchmarks, selling strategies, productivity and
performance best practices, and more.
If you are able, please take a few moments to fill o... (more)
Consumerization of the Enterprise – Phase 2
Consumer VCs like to make light of the Founders Fund mantra ‘We wanted
flying cars, instead we got 140 characters.' For those of us working in the
enterprise, it's actually the reverse, "They promised us 140 characters,
instead we got Workday."
Since 2010, SaaS applications were supposed to "consumerize", but as anyone
who has used the majority of SaaS applications released prior to 2014 knows,
they are still clunky, punishing interfaces that happen to be hosted in
someone else's datacenter. 2014 is proving to be the year where this cha... (more)
Portals, e-commerce sites, B2B commerce and so on...we're witnessing
unprecedented demand for e-business solutions of every stripe as companies
rush to put their businesses on the Web. With Y2K now out of the way, this
has become the top IT priority.
In the past many of these solutions have been built on top of IRM (Internet
Relationship Management) products such as Vignette and BroadVision whose
primary specialization has been content management and personalization. For
early Web sites, mostly serving up static content, this was sufficient. But
once the basic site is up and run... (more)