Title: How to Think Like an Entrepreneur: 10 Lessons From the Front Line
1How to Think Like an Entrepreneur 10 Lessons
From the Front Line
- Mark Goldenson Stanford 01 (sort-of)
2The lesson of this boat
31 An entrepreneurs worst enemy is RISK
4Entrepreneurs not risk-takers risk-reducers
Entrepreneurs tend to focus on the many ways to
create value but one risk can be deadly
5Major types of entrepreneurial risk
62 Become a problem-finder
Real world
What is the next billion dollar idea
How can you make a frictionless review site
- Good problems are harder to find than solutions
- Observe and empathize
- Start with your passions
73 Build something people want!
- Avoid solutions in search of problems (SkyMall)
- Avoid markets of one (you)
84 Loyal niches gt apathetic masses
- Founded 2006
- General social network
- Plan events with friends
- Founded 2006
- Social network for health
- Get advice/support
- Avoid clones with twists
- Avoid vitamins find pain-killers
- Serve loyal users that will drive word-of-mouth
- Even the mass sites usually begin as niche sites
95 Easy is the most important feature!
X
- Changing user behavior is very hard
- Most people are skeptical of innovation
- Ideal solutions slip into existing behavior
106 Give value before you ask for it
Who pays
How many
For what
Advertising
User
Unit
Data
Subscription
Third-party
Transactional
Support
Freemium
White-label
- If costs are low favor distribution over revenue
- Do ask for small commitments to signal value
117 Distribution is the silent killer
- How will people learn about your product
- If answer is word-of-mouth or ads rethink
- Known mediocrity gt unknown greatness
Viral marketing
using the product inherently sells it to others
Partnerships
Embedding
PR
Word-of-mouth
Viral incentive
Viral exposure
Giveaways
Strong strategy
Weak strategy
12The best barrier to entry
Switching costs
Viral marketing
Exclusive partnerships
Brand power
Superior technology
Most features
First-mover advantage
Network effect
High margins
Top-tier backers
138 Find network effects anywhere you can
Network effect
every extra user makes the product more useful
Network effects come in two flavors 1-sided
2-sided
Facebook PayPal ICQ
eBay YouTube Wikipedia
14Pop quiz
- eBay
- High NE
- No virality
- High SC
- TechCrunch blog
- Low NE
- No virality
- No SC
- Hotmail
- No NE
- High virality
- Medium SC
- YouTube
- Medium NE
- Ridiculous virality
- Medium SC
15Where to look for network effects
Marketplaces Trading eBay Craigslist NYSE
Communication Tools ICQ Skype Verizon IN
Platforms Standards Windows Adobe PDF
Social Networks MySpace Facebook LinkedIn
16What about Google
- No switching costs
- No virality
- No network effectsbetween users
Publishers
Advertisers
Ad-matchingalgorithms
Network effect between publishers and
advertisers even though users dont like ads.
179 Know yourself and your goals really
- Know your SWIG
- Strengths what are you good at
- Weaknesses what do you suck at
- Interests what do you like
- Goals what do you want
- Most of us suck at this ask your friends
- If you were already rich what would you do
18How much do you need
- Goal never have to work again
- 2 million 100k annual income
- These opportunities are everywhere
- One example
- A marketplace for small software features
- -Let visitors request and vote on features
- -Let developers offer fixes for bounties
19Team traits to seek and prioritize
- Adaptable
- Communicates well
- Creative
- Detail-oriented
- Fun
- Leads
- Passionate
- Persistent
- Self-aware
- Smart
- Trustworthy
- Persistent
- Passionate
- Trustworthy
- Smart
- Self-aware
- Fun
- Communicates well
- Detail-oriented
- Adaptable
- Leads
- Creative
2010 Listen to gurus and find your own!
- Start-ups Paul Graham
- Product design 37signals
- Engineering mgmt Joel on Software
- Venture capital Brad Feld
- Marketing Seth Godin
- Stanford Career Network
- ETL talks ask for mentorship!
21Want to learn more
- TimeFox Inc.
- Mark Goldenson
- mjgold_at_gmail.com
- www.goldenson.com
