Download - Good Startup Vs Bad Startup
Taking action to
produce working
examples of the
great ideas.
Sketching, drawing, scribbling,
measuring, painting – not actually taking action.
Seeks VC funding
after testing
prototype and
measuring results.
Actively seeks $300million in VC funding after first test is started.
Concentrates funding
capital on helping the
customer: New tools for them to use, marketing
the product/service, generally placing
focus on the customers benefits.
Uses majority of funding on plush Italian sofas and awesome toys for
the toilets.
Searches for niche
market to target and test
the product with.
Then adapts as audience &
market grows.
Expects large audience and
demand right from launch day.
Ensures that there are plenty of
staff, hardware, software & resources to deal with the
inevitable crowd.
No one shows up.
Location of business
chosen is based upon
the need for: - Staff to have an easy commute
& access
- Customers can locate it easily
Looks for cheapest place in order to
attract customers on the basis of price
targeting.
Doesn’t consider location appeal or condition.
Has a
Great
Revenue
Plan
Feels that a revenue is the last of their
worries.
(Remember Instagram was a very, very, very rare example
of valuation to revenue)
Business Wants to remain viable
long term.
Startup
Looks for exit strategy before anything else.
Likes to learn
from past
successes.
Uses Failures as good story telling during networking events to build interest from
outsiders.
Wants to have a
brilliant sales
process in place to
stay a viable &
stable business for
the long term.
Won’t bother with a sales process or
will make plans for it during a toilet
break.
Tests, adapts &
learns from
great metrics
and data.
Plans to be great from the first
moment the world experiences the
product.
Looks to improve
efficiency within the
team and avoids
employing extra
team members.
Uses VC money to drive aggressive
recruitment & expects demand to
match current team numbers.
Is smart when
determining the need
for extra team
members.
Optimizes metrics and data from
quarterly targets & reviews.
Recruits 5 new team members
for every 1 new customer.
Job titles have little
meaning.
Approves and embraces
an open culture.
New recruits are given C Level
authority even if it does mean very
little.
Looking to somehow
put a dent in the
universe with
products and
services.
Making products to
flip and cash in.
Products & services
are produced to help
with problems that
the company has to
deal with.
Seeks out problems that people never thought they had
then tries to solve it with no personal experience in the
situation.
Has a valuable
product. Tries to sell
an idea.
Releases Minimum
Viable Product (MVP)
to test & measure.
Releases final product as first
release.
No testing or measuring completed.
Looks to build just
a small following
before any launch
is announced.
Expects a large following to flock on a whiff of
news.
Never puts work in to actually start building
any means of a following.
Embraces the
‘smaller’ aspects of
exposure with SEO,
Referrals, Web
adverts and Events.
Waits for big time bloggers and the blogging world to
pick up on the product and
generate exposure.
Approaches
business
development
with an open
mind.
Already planning for a
large blue chip to buy the company.
Biz Development
involves working
closely with
other
companies.
Holds auditions for which company
has the right to use products or
services.
Puts together
a Freemium
model.
Never wants to charge for products &
services.
Decides to undercharge.
Continuous A/B
testing takes place
throughout the life
cycle.
Changes things when they feel that
they are bored.
Early Beta
testing. No Beta or
testing.
From day one its
about collecting
contact information of
potential users &
customers.
Release day is the start of
contact capture.
Always knowing
that you need
less than you
think.
Always looking to spend more
than they need.
Puts emphasis on
solid long term
viability of the
startup.
Emphasis on who will they sell to;
Microsoft or Amazon?
Remains agile for as long
as possible.
Employs freelancers ahead of permanent
team members. Basically minimum amount of
long term contracts as possible.
Signs contracts for the long term, hires lot’s of team
members and avoids
freelancers.
Releases a part finished
product, giving the
chance for people to
experience it before
further changes are
added.
Makes half-assed attempt at a product, just wants to have
revenue to keep shareholders happy.
Has a limit on
new services
& add-on’s.
Every brain storm becomes a
released service or product.
Limits the number of
meetings had.
Invites only the leaders or
senior members of the teams.
Meetings arranged to discuss the
choice of kitchen fragrance.
Uses estimates &
metrics for analysis of
the whole process &
future projections.
Works on estimations,
which are always wrong.
Works through the
complaints to take action
on the most common
problems.
Every issues is solved with a new update or a new
product release.
Fine is great. Constantly
tweaking & never releasing.
Uses test results
to ‘know’ what the
market wants.
Tells the market what
it wants.
Beta testing
consists of a
limited number
of variations.
Produces 11 variations for
the Beta stage.
Creates value. Creates waste.
Accepts that
something
doesn't work and
drops it.
Holds onto a failing project,
with intent to drop it.
Talks to customers
during Beta testing
for insight.
Changes only what they
feel is wrong.
Has progressive
targets set close
together.
Quarterly reviews.
Sets yearly targets with
nothing in between.
Sets to increase
revenue on a monthly
basis.
Achievable but hard targets.
Has revenue spikes with PR
work.
Wants to please the investors rather than build
a solid stream.
Brilliant strategy
to cover
growth, revenue
& products.
Uses hope as a strategy.
Anticipates some
screw up’s along the
way.
Apologises and corrects.
Chooses to ignore screw
up’s.
Tests pricing
models and
ranges during the
early stages.
Raises prices once final
release is out and has mass
audience.
For further reading on Startup & Business
success check out the following books:
- REWORK
- The Lean Startup
- The Ultralight Startup
Check out Tactical Sales Blog for more tips & advice on sales, business
& much more.